Third Quarter Highlights

• Net income of $17.4 million; Return on average assets (ROAA) of 2.18%; return on average stockholders' equity (ROAE) of 20.00%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 21.76%
  
  
• C Corp equivalent net income of $13.1 million; C Corp equivalent ROAA of 1.64%; C Corp equivalent ROAE of 15.05%; and C Corp equivalent ROATCE⁽¹⁾ of 16.37%
  
  
• Adjusted C Corp equivalent net income⁽¹⁾ of $14.3 million; adjusted C Corp equivalent ROAA⁽¹⁾ of 1.79%; adjusted C Corp equivalent ROAE⁽¹⁾ of 16.45%; and adjusted C Corp equivalent ROATCE⁽¹⁾ of 17.90%
  
  
• Initial public offering priced on October 10, 2019
  

                                                       

(1)   See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below for a discussion of non-GAAP financial measures and reconciliations to GAAP financial measures.

BLOOMINGTON, Ill., Nov. 06, 2019 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company and State Bank of Lincoln, today reported net income of $17.4 million, or $0.97 diluted earnings per share, for the third quarter of 2019.  This compares to net income of $14.6 million, or $0.81 diluted earnings per share, for the second quarter of 2019, and net income of $17.6 million, or $0.98 diluted earnings per share, for the third quarter of 2018.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “Our third quarter results reflect continued execution on our strategy of prudent growth, disciplined expense management, and strong asset quality.  This formula continues to produce a superior level of profitability.  We are very pleased to have completed our initial public offering.  Becoming a public company is an important next chapter in our history, but our focus remains squarely on understanding our clients’ needs and delivering the products and services that help them achieve their financial goals.  By remaining consistent with our core values, we believe that we will continue to enhance the value of our franchise over the long term.”

C Corp Equivalent Net Income and Adjusted C Corp Equivalent Net Income

The Company has historically operated as an S Corporation for U.S. federal and state income tax purposes.  Following the completion of the initial public offering, the Company will be treated as a C Corporation (“C Corp”) for federal and state income tax purposes.  For comparison, the Company reports its C Corp equivalent financial results, which does not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

For the third quarter of 2019, the Company reported C Corp equivalent net income of $13.1 million, or $0.73 diluted earnings per share.  This compares to C Corp equivalent net income of $11.1 million, or $0.62 diluted earnings per share, for the second quarter of 2019, and C Corp equivalent net income of $13.2 million, or $0.73 diluted earnings per share, for the third quarter of 2018.

In addition to reporting C Corp equivalent results, the Company believes adjusted C Corp equivalent results, which adjust for mortgage servicing right fair value adjustments, gains (losses) on sales of securities, and certain non-recurring items, provide investors with additional insight into its operational performance. The Company reported adjusted C Corp equivalent net income of $14.3 million, or $0.80 diluted earnings per share, for the third quarter of 2019.  This compares to adjusted C Corp equivalent net income of $14.3 million, or $0.79 diluted earnings per share, for the second quarter of 2019, and adjusted C Corp equivalent net income of $13.1 million, or $0.73 diluted earnings per share, for the third quarter of 2018 (see "Reconciliation of GAAP to Non-GAAP Financial Measures" tables).

Net Interest Income

Net interest income for the third quarter of 2019 was $33.1 million, a decrease of 2.3% from $33.9 million for the second quarter of 2019. The decrease was primarily attributable to a decline in net interest margin.

Relative to the third quarter of 2018, net interest income increased $0.5 million, or 1.7%.  The increase was primarily attributable to a higher net interest margin.

Net Interest Margin

Net interest margin for the third quarter of 2019 was 4.31%, compared to 4.36% for the second quarter of 2019.  The decrease was primarily attributable to a decline in average loan yields.

Relative to the third quarter of 2018, net interest margin increased from 4.22%. The increase was primarily attributable to higher loan and securities yields.

The Federal Open Market Committee lowered Federal Funds Target rates for the first time in 11 years on July 31, 2019 and then again in September 2019 and October 2019, for a combined decrease of 75 basis points which we expect to continue to put downward pressure on our net interest margin.

Noninterest Income

Noninterest income for the third quarter of 2019 was $7.6 million, an increase of 3.2% from $7.3 million for the second quarter of 2019.  The growth was primarily attributable to increases in service charges on deposit accounts, wealth management fees, and gain on sale of mortgage loans. Partially offsetting these increases were lower gains on foreclosed and other assets and modest securities losses.

In the third quarter of 2019, the Company recorded a fair value adjustment to mortgage servicing rights that negatively impacted noninterest income by $860,000, compared to a fair value adjustment that negatively impacted noninterest income by $1.1 million in the second quarter of 2019.

Relative to the third quarter of 2018, noninterest income decreased 9.8% from $8.4 million.  The decline was attributable to a larger negative fair value adjustment to mortgage servicing rights in the third quarter of 2019, the loss of revenue from title insurance activities, and unfavorable market value adjustments on equity securities between the two quarters.

Noninterest Expense

Noninterest expense for the third quarter of 2019 was $22.3 million, compared with $24.6 million for the second quarter of 2019.  The decrease was primarily attributable to lower employee benefits expense, as second quarter of 2019 results included a $3.3 million charge associated with the termination of the supplemental executive retirement plan (SERP) compared to the third quarter of 2019 which included a charge of $0.8 million associated with the termination of the SERP.

Relative to the third quarter of 2018, noninterest expense increased 1.7% from $21.9 million. The increase was primarily due to a $0.8 million charge during the third quarter of 2019 associated with the termination of the SERP which was not present during the third quarter of 2018.

Loan Portfolio

Total gross loans outstanding were $2.17 billion at September 30, 2019, compared with $2.20 billion at June 30, 2019 and $2.14 billion at September 30, 2018.  The $32.1 million decline in loans from June 30, 2019 was primarily due to the following items:

• A $26.0 million decrease in construction and land development balances resulting from the payoff of a number of large construction loans following the completion and sale of the projects by borrowers.  Total outstanding commitments for construction and land development loans were approximately the same at both period ends.
• A $11.7 million decrease in balances on lines of credit to grain elevator customers, which is a typical seasonal decline in the third quarter.
• $8.3 million in payoffs and paydowns of non-performing loans during the quarter.

Deposits

Total deposits were $2.70 billion at September 30, 2019, compared with $2.77 billion at June 30, 2019, and $2.74 billion at September 30, 2018.  The $69.7 million decrease in total deposits from June 30, 2019 was primarily due to the following items:

• A $30.3 million decrease in time deposits, as the Company continues to deemphasize higher cost deposit categories.
• A planned decrease of $22.6 million in one higher priced interest-bearing demand account.

Asset Quality

Nonperforming loans totaled $19.1 million, or 0.88% of total loans, at September 30, 2019, compared with $25.1 million, or 1.14% of total loans, at June 30, 2019, and $21.4 million, or 1.00% of total loans, at September 30, 2018.

Net charge-offs for the third quarter of 2019 were $0.5 million, or 0.08% of average loans on an annualized basis.

The Company recorded a provision for loan losses of $0.7 million for the third quarter of 2019, which was primarily driven by the level of net charge-offs in the quarter.  The Company’s allowance for loan losses was 1.05% of total loans and 119.34% of nonperforming loans at September 30, 2019, compared with 1.02% of total loans and 89.98% of nonperforming loans at June 30, 2019.

Capital

At September 30, 2019, the Company exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’, as summarized in the following table:

	September 30,		Well Capitalized
	2019		Regulatory Requirements
Total capital to risk-weighted assets	14.88	%	10.00%
Tier 1 capital to risk-weighted assets	13.97	%	8.00%
Tier 1 leverage ratio	11.02	%	5.00%
Common equity Tier 1 capital	12.51	%	6.50%
Total stockholders' equity to total assets	11.02	%	NA
Tangible common equity to tangible assets (1)	10.23	%	NA

                                               
(1) see "Reconciliation of Non-GAAP Financial Measures" tables

Completion of Initial Public Offering

On October 10, 2019, the Company priced its initial public offering (the “IPO”), and issued 8,300,000 shares of its common stock at a price to the public of $16.00 per share on October 16, 2019.  On October 29, 2019, the underwriters purchased an additional 1,129,794 shares pursuant to the exercise of their option to purchase additional shares from HBT Financial at the initial public offering price, less underwriting discounts and commissions. In total, HBT sold 9,429,794 shares of common stock in the initial public offering, raising total net proceeds, after deducting estimated underwriting discounts and commissions and offering expenses payable by the Company, of approximately $138 million.

On October 22, 2019, the Company paid a $170 million distribution to its pre-IPO stockholders, using the net proceeds of the initial public offering and the proceeds of dividends from Heartland Bank and Trust Company and State Bank of Lincoln.

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and State Bank of Lincoln. The banks provide a comprehensive suite of business, commercial, wealth management and retail banking products and services to businesses, families and local governments throughout Central and Northeastern Illinois through 64 branches. As of September 30, 2019, HBT had total assets of $3.2 billion, total loans of $2.2 billion, and total deposits of $2.7 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back nearly 100 years.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.  These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), originated loans and acquired loans, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, adjusted C Corp equivalent net income, adjusted C Corp equivalent return on average assets, adjusted C Corp equivalent return on average stockholders' equity, and adjusted C Corp equivalent return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels.  These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission.  Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACT:
Matthew Keating
HBTIR@hbtbank.com
(310) 622-8230

HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Statements of Income

		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
INTEREST AND DIVIDEND INCOME		(dollars in thousands, except per share amounts)
Loans, including fees:
Taxable		$	29,308			$	29,886			$	30,063			$	28,625			$	28,226
Federally tax exempt			684				736				710				704				749
Securities:
Taxable			3,572				3,801				3,922				3,655				3,619
Federally tax exempt			1,395				1,512				1,552				1,670				1,758
Interest-bearing deposits in bank			662				599				687				580				362
Other interest and dividend income			15				16				15				14				18
Total interest and dividend income			35,636				36,550				36,949				35,248				34,732
INTEREST EXPENSE
Deposits			2,000				2,111				1,983				1,672				1,619
Securities sold under agreements to repurchase			17				17				14				16				13
Borrowings			—				4				3				8				29
Subordinated debentures			478				487				497				476				470
Total interest expense			2,495				2,619				2,497				2,172				2,131
Net interest income			33,141				33,931				34,452				33,076				32,601
PROVISION FOR LOAN LOSSES			684				1,806				776				3,906				1,238
Net interest income after provision for loan losses			32,457				32,125				33,676				29,170				31,363
NONINTEREST INCOME
Card income			1,985				1,996				1,832				1,954				1,848
Service charges on deposit accounts			2,111				1,931				1,763				2,078				2,157
Wealth management fees			1,676				1,493				2,047				2,087				1,695
Mortgage servicing			795				818				729				861				755
Mortgage servicing rights fair value adjustment			(860	)			(1,120	)			(1,002	)			355				(93	)
Gains on sale of mortgage loans			992				660				525				666				855
Gains (losses) on securities			(73	)			36				79				(2,813	)			180
Gains (losses) on foreclosed assets			(20	)			169				(17	)			(479	)			(251	)
Gains (losses) on sales of other assets			(29	)			368				605				580				(13	)
Title insurance activity			—				38				129				276				335
Other noninterest income			1,005				957				797				864				939
Total noninterest income			7,582				7,346				7,487				6,429				8,407
NONINTEREST EXPENSE
Salaries			12,335				11,597				12,407				13,091				12,264
Employee benefits			2,224				4,731				1,359				1,522				1,492
Occupancy of bank premises			1,785				1,638				1,837				1,776				1,822
Furniture and equipment			545				716				789				693				695
Data processing			1,471				1,390				1,162				1,299				1,265
Marketing and customer relations			801				1,103				933				1,125				974
Amortization of intangible assets			335				376				376				390				389
FDIC insurance			8				208				219				214				241
Loan collection and servicing			547				612				742				720				625
Foreclosed assets			196				165				164				100				247
Other noninterest expense			2,056				2,025				2,224				2,510				1,923
Total noninterest expense			22,303				24,561				22,212				23,440				21,937
INCOME BEFORE INCOME TAX EXPENSE			17,736				14,910				18,951				12,159				17,833
INCOME TAX EXPENSE			299				305				215				239				241
NET INCOME		$	17,437			$	14,605			$	18,736			$	11,920			$	17,592
EARNINGS PER SHARE - BASIC		$	0.97			$	0.81			$	1.04			$	0.66			$	0.98
EARNINGS PER SHARE - DILUTED		$	0.97			$	0.81			$	1.04			$	0.66			$	0.98
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			18,027,512				18,027,512				18,027,512				18,027,512				18,027,512
C CORP EQUIVALENT INFORMATION
Historical income before income tax expense		$	17,736			$	14,910			$	18,951			$	12,159			$	17,833
C Corp equivalent income tax expense			4,614				3,784				4,915				2,965				4,605
C Corp equivalent net income		$	13,122			$	11,126			$	14,036			$	9,194			$	13,228
C CORP EQUIVALENT EARNINGS PER SHARE - BASIC		$	0.73			$	0.62			$	0.78			$	0.51			$	0.73
C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED		$	0.73			$	0.62			$	0.78			$	0.51			$	0.73

HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets

		As of
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
		(dollars in thousands, except share data)
ASSETS
Cash and due from banks		$	19,969			$	17,151			$	17,984			$	21,343			$	19,567
Interest-bearing deposits with banks			134,972				124,575				142,518				165,536				73,543
Cash and cash equivalents			154,941				141,726				160,502				186,879				93,110
Interest-bearing time deposits with banks			248				248				248				248				248
Securities available-for-sale, at fair value			618,120				651,967				681,233				679,526				704,346
Securities held-to-maturity			99,861				108,829				116,745				121,715				124,786
Equity securities			4,436				4,030				3,994				3,261				3,271
Restricted stock, at cost			2,425				2,425				2,719				2,719				2,719
Loans held for sale			7,608				5,303				2,496				2,800				4,508
Gross loans			2,171,014				2,203,096				2,183,322				2,144,257				2,139,139
Allowance for loan losses			(22,761	)			(22,542	)			(21,013	)			(20,509	)			(21,171	)
Loans, net of allowance for loan losses			2,148,253				2,180,554				2,162,309				2,123,748				2,117,968
Bank premises and equipment, net			54,105				53,993				54,185				54,736				54,283
Bank premises held for sale			121				149				208				749				804
Foreclosed assets			6,574				9,707				10,151				9,559				10,176
Goodwill			23,620				23,620				23,620				23,620				23,620
Core deposit intangible assets, net			4,366				4,701				5,077				5,453				5,843
Mortgage servicing rights, at fair value			7,936				8,796				9,916				10,918				10,563
Investments in unconsolidated subsidiaries			1,165				1,165				1,165				1,165				1,165
Accrued interest receivable			14,816				14,609				15,256				15,300				16,176
Other assets			18,018				12,338				7,843				7,173				7,027
Total assets		$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569			$	3,180,613
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing		$	649,316			$	662,405			$	661,527			$	664,876			$	625,332
Interest-bearing			2,054,742				2,111,363				2,159,916				2,131,094				2,114,322
Total deposits			2,704,058				2,773,768				2,821,443				2,795,970				2,739,654
Securities sold under agreements to repurchase			32,267				35,646				40,528				46,195				45,900
Subordinated debentures			37,566				37,550				37,533				37,517				37,501
Other liabilities			43,786				37,326				29,570				29,491				27,701
Total liabilities			2,817,677				2,884,290				2,929,074				2,909,173				2,850,756
Stockholders' Equity
Common stock:
Voting			3				3				3				3				3
Series A nonvoting			178				178				178				178				178
Surplus			32,288				32,288				32,288				32,288				32,288
Retained earnings			311,055				302,984				298,131				315,234				314,166
Accumulated other comprehensive income (loss)			8,431				7,436				1,012				(4,288	)			(13,759	)
Less cost of treasury stock held:
Voting			(1,667	)			(1,667	)			(1,667	)			(1,667	)			(1,667	)
Series A nonvoting			(1,352	)			(1,352	)			(1,352	)			(1,352	)			(1,352	)
Total stockholders’ equity			348,936				339,870				328,593				340,396				329,857
Total liabilities and stockholders’ equity		$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569			$	3,180,613
Share Data
Ending number shares of common stock outstanding			18,027,512				18,027,512				18,027,512				18,027,512				18,027,512

HBT Financial, Inc.
Consolidated Financial Summary

		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
		(Dollars in thousands)
LOANS
Commercial and industrial		$	340,650		$	352,326		$	363,918		$	360,501		$	353,105
Agricultural and farmland			205,041			208,923			207,817			209,875			206,117
Commercial real estate - owner occupied			239,805			244,954			250,274			255,074			265,409
Commercial real estate - non-owner occupied			552,262			543,444			556,386			533,910			518,919
Multi-family			191,646			191,734			146,374			135,925			122,558
Construction and land development			210,939			236,902			223,489			237,275			242,666
One-to-four family residential			321,947			323,135			321,224			313,108			322,459
Municipal, consumer, and other			108,724			101,678			113,840			98,589			107,906
Total loans, before allowance for loan losses		$	2,171,014		$	2,203,096		$	2,183,322		$	2,144,257		$	2,139,139

		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
		(Dollars in thousands)
DEPOSITS
Noninterest-bearing		$	649,316		$	662,405		$	661,527		$	664,876		$	625,332
Interest-bearing demand			800,471			815,770			819,313			856,919			820,488
Money market			463,444			472,738			453,117			427,730			425,909
Savings			426,707			428,439			435,353			421,698			424,927
Time			364,120			394,416			452,133			424,747			442,998
Total deposits		$	2,704,058		$	2,773,768		$	2,821,443		$	2,795,970		$	2,739,654

HBT Financial, Inc.
Consolidated Financial Summary

		Three Months Ended
		September 30, 2019										June 30, 2019										September 30, 2018
		Average Balance				Interest			(2) Yield/Cost			Average Balance				Interest			(2) Yield/Cost			Average Balance				Interest			(2) Yield/Cost
ASSETS		(dollars in thousand)
Gross loans		$	2,191,230			$	29,992		5.47	%		$	2,196,934			$	30,622		5.58	%		$	2,143,577			$	28,975		5.41	%
Securities			745,532				4,967		2.67	%			786,759				5,313		2.70	%			851,324				5,377		2.53	%
Deposits with banks			136,635				662		1.94	%			125,263				599		1.91	%			91,474				362		1.58	%
Other			2,425				15		2.37	%			2,439				16		2.64	%			2,719				18		2.56	%
Total interest-earning assets			3,075,822			$	35,636		4.63	%			3,111,395			$	36,550		4.70	%			3,089,094			$	34,732		4.50	%
Allowance for loan losses			(22,326	)									(21,250	)									(20,263	)
Noninterest-earning assets			149,146										146,208										151,753
Total assets		$	3,202,642									$	3,236,353									$	3,220,584
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	812,526			$	347		0.17	%		$	826,715			$	411		0.20	%		$	820,619			$	377		0.18	%
Money market			468,139				497		0.42	%			455,454				489		0.43	%			438,784				165		0.15	%
Savings			428,447				70		0.07	%			433,125				69		0.06	%			428,725				70		0.07	%
Time			383,070				1,086		1.13	%			411,514				1,142		1.11	%			453,543				1,007		0.89	%
Total interest-bearing deposits			2,092,182				2,000		0.38	%			2,126,808				2,111		0.40	%			2,141,671				1,619		0.30	%
Securities sold under agreements to repurchase			35,757				17		0.19	%			40,851				17		0.17	%			42,034				13		0.12	%
Borrowings			33				—		2.42	%			549				4		2.62	%			5,880				29		1.97	%
Subordinated debentures			37,561				478		5.09	%			37,544				487		5.19	%			37,495				470		5.01	%
Total interest-bearing liabilities			2,165,533			$	2,495		0.46	%			2,205,752			$	2,619		0.47	%			2,227,080			$	2,131		0.38	%
Noninterest-bearing deposits			651,085										662,731										634,960
Noninterest-bearing liabilities			37,274										29,257										26,393
Total liabilities			2,853,892										2,897,740										2,888,433
Stockholders' Equity			348,750										338,613										332,151
Total liabilities and stockholders’ equity		$	3,202,642									$	3,236,353									$	3,220,584
Net interest income/Net interest margin (4)						$	33,141		4.31	%						$	33,931		4.36	%						$	32,601		4.22	%
Tax-equivalent adjustment (3)							559		0.07	%							606		0.08	%							677		0.09	%
Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (1) (3)						$	33,700		4.38	%						$	34,537		4.44	%						$	33,278		4.31	%
Net interest rate spread (5)									4.17	%									4.23	%									4.12	%
Net interest-earning assets (6)		$	910,289									$	905,643									$	862,014
Ratio of interest-earning assets to interest-bearing liabilities			1.42										1.41										1.39
Cost of deposits									0.29	%									0.30	%									0.23	%

                                            
(1) See "Reconciliation of Non-GAAP Financial Information" below for reconciliation of non-GAAP measure to their most comparable GAAP measures.
(2) Annualized measure.
(3) On a C Corp tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.
(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.
Consolidated Financial Summary

		Nine Months Ended
		September 30, 2019										September 30, 2018
		Average Balance				Interest			(2) Yield/Cost			Average Balance				Interest			(2) Yield/Cost
ASSETS		(dollars in thousand)
Gross loans		$	2,184,263			$	91,387		5.58	%		$	2,129,043			$	84,705		5.30	%
Securities			779,375				15,754		2.70	%			877,086				16,288		2.48	%
Deposits with banks			131,209				1,948		1.98	%			107,997				1,137		1.40	%
Other			2,527				46		2.41	%			2,789				54		2.56	%
Total interest-earning assets			3,097,374			$	109,135		4.70	%			3,116,915			$	102,184		4.37	%
Allowance for loan losses			(21,346	)									(19,771	)
Noninterest-earning assets			147,972										160,676
Total assets		$	3,224,000									$	3,257,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	821,848			$	1,175		0.19	%		$	826,311			$	964		0.16	%
Money market			455,469				1,356		0.40	%			448,266				491		0.15	%
Savings			428,865				207		0.06	%			436,913				213		0.07	%
Time			408,972				3,356		1.09	%			445,826				2,547		0.76	%
Total interest-bearing deposits			2,115,154				6,094		0.38	%			2,157,316				4,215		0.26	%
Securities sold under agreements to repurchase			39,542				48		0.16	%			37,631				32		0.11	%
Borrowings			378				7		2.60	%			19,535				252		1.72	%
Subordinated debentures			37,544				1,462		5.19	%			37,479				1,319		4.69	%
Total interest-bearing liabilities			2,192,618			$	7,611		0.46	%			2,251,961			$	5,818		0.34	%
Noninterest-bearing deposits			654,818										652,149
Noninterest-bearing liabilities			31,720										25,712
Total liabilities			2,879,156										2,929,822
Stockholders' Equity			344,844										327,998
Total liabilities and stockholders’ equity		$	3,224,000									$	3,257,820
Net interest income/Net interest margin (4)						$	101,524		4.37	%						$	96,366		4.12	%
Tax-equivalent adjustment (3)							1,775		0.08	%							2,020		0.09	%
Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (1) (3)						$	103,299		4.45	%						$	98,386		4.21	%
Net interest rate spread (5)									4.24	%									4.03	%
Net interest-earning assets (6)		$	904,756									$	864,954
Ratio of interest-earning assets to interest-bearing liabilities			1.41										1.38
Cost of deposits									0.29	%									0.20	%

                                                 
(1) See "Reconciliation of Non-GAAP Financial Information" below for reconciliation of non-GAAP measure to their most comparable GAAP measures.
(2) Annualized measure.
(3) On a C Corp tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.
(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.
Consolidated Financial Summary

		9/30/2019				6/30/2019				3/31/2019				12/31/2018				9/30/2018
		(Dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual		$	18,977			$	25,051				13,877				15,876				20,783
Past due 90 days or more, still accruing (1)			95				2				53				37				629
Total nonperforming loans			19,072				25,053				13,930				15,913				21,412
Foreclosed assets			6,574				9,707				10,151				9,559				10,176
Total nonperforming assets		$	25,646			$	34,760			$	24,081			$	25,472			$	31,588
NONPERFORMING ASSETS (Originated) (2)
Nonaccrual		$	11,268			$	15,985				8,619				10,329				13,683
Past due 90 days or more, still accruing			95				2				53				37				629
Total nonperforming loans			11,363				15,987				8,672				10,366				14,312
Foreclosed assets			1,048				1,510				1,439				1,395				1,975
Total nonperforming (originated)		$	12,411			$	17,497			$	10,111			$	11,761			$	16,287
NONPERFORMING ASSETS (Acquired) (2)
Nonaccrual		$	7,709			$	9,066			$	5,258			$	5,547			$	7,100
Past due 90 days or more, still accruing (1)			—				—				—				—				—
Total nonperforming loans			7,709				9,066				5,258				5,547				7,100
Foreclosed assets			5,526				8,197				8,712				8,164				8,201
Total nonperforming assets (acquired)		$	13,235			$	17,263			$	13,970			$	13,711			$	15,301
Allowance for loan losses		$	22,761			$	22,542			$	21,013			$	20,509			$	21,172
Gross loans		$	2,171,014			$	2,203,096			$	2,183,322			$	2,144,257			$	2,139,139
Gross loans (originated) (2)			1,987,265				2,005,250				1,974,840				1,923,859				1,904,600
Gross loans (acquired) (2)			183,749				197,846				208,482				220,398				234,539
CREDIT QUALITY RATIOS
Allowance for loan losses to gross loans			1.05	%			1.02	%			0.96	%			0.96	%			0.99	%
Allowance for loan losses to nonperforming loans			119.34	%			89.98	%			150.85	%			128.88	%			98.88	%
Nonperforming loans to gross loans			0.88	%			1.14	%			0.64	%			0.74	%			1.00	%
Nonperforming assets to gross assets			0.81	%			1.08	%			0.74	%			0.78	%			0.99	%
Nonperforming assets to gross loans and foreclosed assets			1.18	%			1.57	%			1.10	%			1.18	%			1.47	%
CREDIT QUALITY RATIOS (Originated) (2)
Nonperforming loans to gross loans			0.57	%			0.80	%			0.44	%			0.54	%			0.75	%
Nonperforming assets to gross loans and foreclosed assets			0.62	%			0.87	%			0.51	%			0.61	%			0.85	%
CREDIT QUALITY RATIOS (Acquired) (2)
Nonperforming loans to gross loans			4.20	%			4.58	%			2.52	%			2.52	%			3.03	%
Nonperforming assets to gross loans and foreclosed assets			6.99	%			8.38	%			6.43	%			6.00	%			6.30	%

                                                 
(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days totaling $0.7 million, $0.5 million, $2.5 million, $2.7 million, and $2.9 million as of September 30, 2019, June 30, 2019, March 30, 2019, December 31, 2018, September 30, 2018, respectively.
(2) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and other real estate owned (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.
Consolidated Financial Summary

		Three Months Ended																				Nine Months Ended September 30,
		9/30/2019				6/30/2019				3/31/2019				12/31/2018				9/30/2018				2019				2018
ALLOWANCE FOR LOAN LOSSES		(dollars in thousands)
Beginning balance		$	22,542			$	21,013			$	20,509			$	21,171			$	20,345			$	20,509			$	19,765
Provision			684				1,806				776				3,906				1,238				3,266				1,791
Charge-offs			(937	)			(966	)			(533	)			(4,953	)			(662	)			(2,436	)			(1,532	)
Recoveries			472				689				261				385				250				1,422				1,147
Ending balance		$	22,761			$	22,542			$	21,013			$	20,509			$	21,171			$	22,761			$	21,171
Net charge-offs (recoveries)		$	465			$	277			$	272			$	4,568			$	412			$	1,014			$	385
Net charge-offs (recoveries) - (originated) (1)			224				(238	)			196				2,778				239				182				359
Net charge-offs (recoveries) - (acquired) (1)			241				515				76				1,790				173				832				26
Net charge-offs to average gross loans			0.08	%			0.05	%			0.05	%			0.85	%			0.08	%			0.06	%			0.02	%
Net charge-offs to average gross loans (originated) (1)			0.04	%			-0.05	%			0.04	%			0.58	%			0.05	%			0.01	%			0.03	%
Net charge-offs to average gross loans (acquired) (1)			0.51	%			1.00	%			0.14	%			3.10	%			0.28	%			0.54	%			0.01	%
Average gross loans		$	2,191,230			$	2,196,934			$	2,164,330			$	2,138,839			$	2,143,577			$	2,184,263			$	2,129,043
Average gross loans (originated) (1)			2,001,803				1,990,015				1,946,035				1,907,503				1,895,859				1,979,383				1,862,206
Average gross loans (acquired) (1)			189,427				206,919				218,295				231,336				247,718				204,880				266,837

                                                 
(1) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and other real estate owned (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.
Consolidated Financial Summary

		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
		(dollars in thousands, except share and per share data)
EARNINGS AND PER SHARE DATA
Net income		$	17,437			$	14,605			$	18,736			$	11,920			$	17,592
Earnings per share - Basic and diluted			0.97				0.81				1.04				0.66				0.98
C Corp equivalent net income (3)		$	13,122			$	11,126			$	14,036			$	9,194			$	13,228
C Corp equivalent earnings per share - Basic and diluted (3)			0.73				0.62				0.78				0.51				0.73
Ending number shares of common stock outstanding			18,027,512				18,027,512				18,027,512				18,027,512				18,027,512
Weighted average shares of common stock outstanding			18,027,512				18,027,512				18,027,512				18,027,512				18,027,512
PERFORMANCE RATIOS
Return on average assets (2)			2.18	%			1.81	%			2.32	%			1.48	%			2.18	%
Return on average stockholders' equity (2)			20.00	%			17.25	%			21.59	%			14.14	%			21.19	%
Net interest margin (2)			4.31	%			4.36	%			4.44	%			4.29	%			4.22	%
Efficiency ratio			53.94	%			58.59	%			52.07	%			58.35	%			52.55	%
C Corp equivalent return on average assets (2) (3)			1.64	%			1.38	%			1.74	%			1.14	%			1.64	%
C Corp equivalent return on average stockholders' equity (2) (3)			15.05	%			13.14	%			16.17	%			10.91	%			15.93	%
NON-GAAP INFORMATION
Adjusted C Corp equivalent net income (1)		$	14,343			$	14,308			$	14,359			$	10,874			$	13,132
Adjusted C Corp equivalent earnings per share - Basic and diluted (1) (4)			0.80				0.79				0.80				0.60				0.73
Net interest margin (tax equivalent basis) (1) (2)			4.38	%			4.44	%			4.52	%			4.37	%			4.31	%
Efficiency ratio (tax equivalent basis) (1)			53.21	%			57.74	%			51.32	%			57.42	%			51.69	%
Adjusted C Corp equivalent return on average assets (1) (2)			1.79	%			1.77	%			1.78	%			1.35	%			1.63	%
Adjusted C Corp equivalent return on average stockholders' equity (1) (2)			16.45	%			16.90	%			16.54	%			12.90	%			15.81	%
Return on average tangible common equity (1) (2)			21.76	%			18.84	%			23.55	%			15.49	%			23.27	%
C Corp equivalent return on average tangible common equity (1) (2) (3)			16.37	%			14.35	%			17.64	%			11.95	%			17.49	%
Adjusted C Corp equivalent return on average tangible common equity (1) (2)			17.90	%			18.46	%			18.05	%			14.13	%			17.37	%

                                                
(1) See "Reconciliation of Non-GAAP Financial Information" below for reconciliation of non-GAAP measure to their most comparable GAAP measures.
(2) Annualized measure.
(3) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.

Reconciliation of Non-GAAP Financial Measures – Adjusted C Corp Equivalent Net Income and Adjusted C Corp Equivalent Return on Average Assets
		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
		(dollars in thousands, except share and per share data)
Net income		$	17,437			$	14,605			$	18,736			$	11,920			$	17,592
C Corp equivalent net income (3)		$	13,122			$	11,126			$	14,036			$	9,194			$	13,228
Adjustments:
Net earnings (losses) from closed or sold operations, including gains on sale (1)			(3	)			(14	)			550				98				(35	)
Charges related to termination of certain employee benefit plans			(845	)			(3,316	)			—				—				—
Realized gains (losses) on sales of securities			—				—				—				(2,803	)			262
Mortgage servicing rights fair value adjustment			(860	)			(1,120	)			(1,002	)			355				(93	)
Total adjustments			(1,708	)			(4,450	)			(452	)			(2,350	)			134
C Corp equivalent tax effect of adjustments			487				1,268				129				670				(38	)
Less adjustments after C Corp equivalent tax effect			(1,221	)			(3,182	)			(323	)			(1,680	)			96
Adjusted C Corp equivalent net income		$	14,343			$	14,308			$	14,359			$	10,874			$	13,132
Average assets		$	3,202,642			$	3,236,353			$	3,233,293			$	3,217,545			$	3,220,584
Return on average assets (2)			2.18	%			1.81	%			2.32	%			1.48	%			2.18	%
C Corp equivalent return on average assets (2) (3)			1.64	%			1.38	%			1.74	%			1.14	%			1.64	%
Adjusted C Corp equivalent return on average assets (2)			1.79	%			1.77	%			1.78	%			1.35	%			1.63	%
Weighted average shares of common stock outstanding			18,027,512				18,027,512				18,027,512				18,027,512				18,027,512
Earnings per share - Basic and Diluted		$	0.97			$	0.81			$	1.04			$	0.66			$	0.98
C Corp equivalent Earnings per share - Basic and Diluted (3)			0.73				0.62				0.78				0.51				0.73
Adjusted C Corp equivalent earnings per share - Basic and diluted			0.80				0.79				0.80				0.60				0.73

                                                
(1) Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.
(2) Annualized measure.
(3) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.

Reconciliation of Non-GAAP Financial Measures - Net Interest Margin (Tax Equivalent Basis)
		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Net interest income (tax equivalent basis)		(dollars in thousands)
Net interest income		$	33,141			$	33,931			$	34,452			$	33,076			$	32,601
Tax-equivalent adjustment (1)			559				606				610				641				677
Net interest income (tax equivalent basis)  (1)		$	33,700			$	34,537			$	35,062			$	33,717			$	33,278
Net interest margin (tax equivalent basis)
Net interest margin (2)			4.31	%			4.36	%			4.44	%			4.29	%			4.22	%
Tax-equivalent adjustment (1) (2)			0.07	%			0.08	%			0.08	%			0.08	%			0.09	%
Net interest margin (tax equivalent basis) (1) (2)			4.38	%			4.44	%			4.52	%			4.37	%			4.31	%
Average interest-earning assets		$	3,075,822			$	3,111,395			$	3,105,216			$	3,086,641			$	3,089,094
		Nine Months Ended
		September 30, 2019				September 30, 2018
			(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income		$	101,524			$	96,366
Tax-equivalent adjustment (1)			1,775				2,020
Net interest income (tax equivalent basis)  (1)		$	103,299			$	98,386
Net interest margin (tax equivalent basis)
Net interest margin (2)			4.37	%			4.12	%
Tax-equivalent adjustment (1) (2)			0.08	%			0.09	%
Net interest margin (tax equivalent basis) (1) (2)			4.45	%			4.21	%
Average interest-earning assets		$	3,097,374			$	3,116,915

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

Reconciliation of Non-GAAP Financial Measures - Efficiency Ratio (Tax Equivalent Basis)
		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Efficiency ratio (tax equivalent basis)		(dollars in thousands)
Total noninterest expense		$	22,303			$	24,561			$	22,212			$	23,440			$	21,937
Less: amortization of intangible assets			335				376				376				390				389
Adjusted noninterest expense		$	21,968			$	24,185			$	21,836			$	23,050			$	21,548
Net interest income		$	33,141			$	33,931			$	34,452			$	33,076			$	32,601
Total noninterest income			7,582				7,346				7,487				6,429				8,407
Operating revenue			40,723				41,277				41,939				39,505				41,008
Tax-equivalent adjustment (1)			559				606				610				641				677
Operating revenue (tax-equivalent basis) (1)		$	41,282			$	41,883			$	42,549			$	40,146			$	41,685
Efficiency ratio			53.94	%			58.59	%			52.07	%			58.35	%			52.55	%
Efficiency ratio (tax equivalent basis) (1)			53.21	%			57.74	%			51.32	%			57.42	%			51.69	%

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

Reconciliation of Non-GAAP Financial Measures - Tangible Common Equity to Tangible Assets , Adjusted C Corp Equivalent Return on Average Stockholders' Equity and Adjusted C Corp Equivalent Return on Tangible Common Equity
		As of
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Tangible Common Equity		(dollars in thousands, except share and per share data)
Total stockholders' equity		$	348,936			$	339,870			$	328,593			$	340,396			$	329,857
Less: Goodwill			23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net			4,366				4,701				5,077				5,453				5,843
Tangible common equity		$	320,950			$	311,549			$	299,896			$	311,323			$	300,394
Tangible Assets
Total assets		$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569			$	3,180,613
Less: Goodwill			23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net			4,366				4,701				5,077				5,453				5,843
Tangible assets		$	3,138,627			$	3,195,839			$	3,228,970			$	3,220,496			$	3,151,150
Total stockholders' equity to total assets			11.02	%			10.54	%			10.09	%			10.48	%			10.37	%
Tangible common equity to tangible assets			10.23	%			9.75	%			9.29	%			9.67	%			9.53	%

		Three Months Ended
		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Average Tangible Common Equity		(dollars in thousands)
Total stockholders' equity		$	348,750			$	338,613			$	347,157			$	337,114			$	332,151
Less: Goodwill			23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net			4,561				4,919				5,301				5,663				6,070
Average tangible common equity		$	320,569			$	310,074			$	318,236			$	307,831			$	302,461
Net income		$	17,437			$	14,605			$	18,736			$	11,920			$	17,592
C Corp equivalent net income (2)			13,122				11,126				14,036				9,194				13,228
Adjusted C Corp equivalent net income			14,343				14,308				14,359				10,874				13,132
Return on average stockholders' equity (1)			20.00	%			17.25	%			21.59	%			14.14	%			21.19	%
C Corp equivalent return on average stockholders' equity (1) (2)			15.05	%			13.14	%			16.17	%			10.91	%			15.93	%
Adjusted C Corp equivalent return on average stockholders' equity (1)			16.45	%			16.90	%			16.54	%			12.90	%			15.81	%
Return on average tangible common equity (1)			21.76	%			18.84	%			23.55	%			15.49	%			23.27	%
C Corp equivalent return on average tangible common equity (1) (2)			16.37	%			14.35	%			17.64	%			11.95	%			17.49	%
Adjusted C Corp equivalent return on average tangible common equity (1)			17.90	%			18.46	%			18.05	%			14.13	%			17.37	%

                                                
(1) Annualized measure.
(2) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.