8-K - HBT - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 24, 2023

HBT FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-39085	37-1117216
(State or other jurisdiction<br>of incorporation)	(Commission File Number)	(IRS Employer<br>Identification Number)

401 North Hershey Road Bloomington , Illinois		61704
(Address of principal executive<br>offices)		(Zip Code)

( 888 ) 897-2276

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HBT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 24, 2023, HBT Financial, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended and six months ended June 30, 2023 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

The information contained in Item 2.02, including Exhibit 99.1 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or into any filing or other document pursuant to the Exchange Act, except to the extent required by applicable law or regulation.

Item 7.01. Regulation FD Disclosure.

The Company has prepared a presentation of its results for the second quarter ended June 30, 2023 (the “Presentation”) to be used from time to time during meetings with members of the investment community. A copy of the Presentation is furnished as Exhibit 99.2 to this Report. The Presentation will also be made available on the Company’s investor relations website at ir.hbtfinancial.com under the Presentations section.

The information contained in Item 7.01, including Exhibit 99.2 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act, or into any filing or other document pursuant to the Exchange Act, except to the extent required by applicable law or regulation.

Item 9.01. Financial Statements and Exhibits.

Exhibit Number	Description of Exhibit

99.1	Earnings Release issued July 24, 2023 for the Second Quarter Ended and Six Months Ended June 30, 2023.

99.2	HBT Financial, Inc. Presentation of Results for the Second Quarter Ended June 30, 2023.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	HBT FINANCIAL, INC.


	By:	/s/ Peter R. Chapman
		Name: Peter R. Chapman
		Title: Chief Financial Officer

Date: July 24, 2023

EXHIBIT 99.1

HBT FINANCIAL, INC. ANNOUNCES

SECOND QUARTER 2023 FINANCIAL RESULTS

Second Quarter Highlights

●	Net income of $18.5 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.49%; return on average stockholders' equity (ROAE) of 16.30%; and return on average tangible common equity (ROATCE)^(1)^ of 19.91%
●	Adjusted net income^(1)^ of $18.8 million; or $0.58 per diluted share; adjusted ROAA^(1)^ of 1.51%; adjusted ROAE^(1)^ of 16.57%; and adjusted ROATCE^(1)^ of 20.23%
---	---
●	Asset quality remained strong with nonperforming assets to total assets of 0.21%
---	---
●	Net interest margin of 4.16% and net interest margin (tax equivalent basis)^(1)^ of 4.22%
---	---

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

Bloomington, IL, July 24, 2023 – HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023. This compares to net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023, and net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “I had the honor of being named CEO of HBT Financial and Heartland Bank and Trust Company during the second quarter. I look forward to continuing to work closely with Fred Drake, Executive Chairman; the rest of Board of Directors; and our executive team to deliver the consistently solid financial performance to which we are accustomed. I am very pleased with our financial performance for the second quarter of 2023. With a ROAA of 1.49% and a ROATCE of 19.91%, we continue to produce strong returns. Our granular deposit base and excellent credit quality continue to support our strong results. Although we continue to see pressure on deposit pricing, we were able to maintain a solid net interest margin of 4.16%, down only 4 basis points from last quarter. We completed our system conversion for our Town and Country Financial Corporation (“Town and Country”) acquisition and have fully integrated the Town and Country team. We look forward to recognizing the enhanced long-term value provided by the increased scale and new markets that this acquisition has provided.”

HBT Financial, Inc.

Page 2 of 15

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023. This compares to adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023, and adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2023 was $48.9 million, an increase of 4.3% from $46.8 million for the first quarter of 2023. The increase was primarily attributable to the increase in earning assets following the Town and Country merger completed on February 1, 2023 and higher yields on interest-earning assets. Partially offsetting this improvement was an increase in funding costs.

Relative to the second quarter of 2022, net interest income increased 42.2% from $34.4 million. The increase was primarily attributable to higher yields on interest-earning assets and the increase in average interest-earning assets following the Town and Country merger.

Net interest margin for the second quarter of 2023 was 4.16%, compared to 4.20% for the first quarter of 2023, and net interest margin (tax equivalent basis) for the second quarter of 2023 was 4.22% compared to 4.26% for the first quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 0.71% for the second quarter of 2023, compared to 0.47% for the first quarter of 2023, which outpaced the increased asset yields which rose by 19 basis points to 4.83%. Acquired loan discount accretion contributed 9 basis points to net interest margin during the second quarter of 2023 and 7 basis points during the first quarter of 2023.

Relative to the second quarter of 2022, net interest margin increased from 3.34%. This increase was primarily attributable to higher yields on interest-earning assets. Acquired loan discount accretion contributed 3 basis points to net interest margin, during the second quarter of 2022.

Noninterest Income

Noninterest income for the second quarter of 2023 was $9.9 million, an increase of 33.3% from $7.4 million for the first quarter of 2023. The increase was primarily attributable to the absence of realized losses on sales of securities of $1.0 million included in the first quarter of 2023 results as well as a $0.8 million change in the mortgage servicing rights fair value adjustment. Additionally, increases in card income of $0.2 million and mortgage servicing income of $0.2 million primarily reflect the addition of Town and Country’s operations for the first full quarter.

Relative to the second quarter of 2022, noninterest income increased 15.9% from $8.6 million. The increase was primarily attributable to the Town and Country merger with a $0.6 million increase in mortgage servicing income, a $0.2 million increase in card income, and a $0.1 million increase in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2023 was $34.0 million, a 5.5% decrease from $35.9 million for the first quarter of 2023. Acquisition-related noninterest expenses totaled $0.6 million during the second quarter of 2023, compared to $7.1 million during the first quarter of 2023. Excluding acquisition-related noninterest expenses, the $4.6 million increase in noninterest expense was primarily attributable to $0.8 million of legal fees and $0.8 million of accruals related to pending legal matters previously disclosed and incurred during the second quarter of 2023 that were not present in the first quarter of 2023 results. Settlements have been reached with plaintiffs in these matters which are now pending final court approval. Additionally, the second quarter of 2023 results included a full quarter’s impact of Town and Country’s operations.

HBT Financial, Inc.

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Relative to the second quarter of 2022, noninterest expense increased 42.5% from $23.8 million, primarily attributable to the addition of Town and Country’s operations, additional legal costs and settlement accrual.

Acquisition-related expenses during the first and second quarter of 2023 are summarized below. There were no acquisition-related expenses during the second quarter of 2022. We do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.


	Three Months Ended
	June 30, 2023		March 31, 2023
	(dollars in thousands)
PROVISION FOR CREDIT LOSSES	$	—	$	5,924
NONINTEREST EXPENSE
Salaries		66		3,518
Furniture and equipment		39		—
Data processing		176		1,855
Marketing and customer relations		10		14
Loan collection and servicing		125		—
Legal fees and other noninterest expense		211		1,753
Total noninterest expense		627		7,140
Total acquisition-related expenses	$	627	$	13,064

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.24 billion at June 30, 2023, compared with $3.20 billion at March 31, 2023 and $2.45 billion at June 30, 2022. The $49.1 million increase from March 31, 2023 was primarily attributable to a $52.8 million increase in commercial and industrial loans driven by new loan fundings and the purchase of $37.0 million of loans from two new strategic partners. The $53.9 million decrease in the construction and development loans was generally driven by the completion of a number of sizeable projects that are now amortizing and have been moved into other real estate loan categories, with the largest being a $29.5 million project that moved to the commercial real estate - non-owner occupied category. Additionally, we received a payoff on a $12.4 million substandard relationship in the commercial real estate - non-owner occupied category.

Deposits

Total deposits were $4.16 billion at June 30, 2023, compared with $4.31 billion at March 31, 2023 and $3.70 billion at June 30, 2022. The $146.0 million decrease from March 31, 2023 was primarily attributable to decreases in balances held in existing retail and business accounts partially offset by a seasonal increase in public fund account balances and the addition of $51.0 million of brokered deposits. Additionally, a higher than historical average net deposit inflow on March 31, 2023, as referenced in our first quarter of 2023 investor presentation, included $36 million related to one account which was withdrawn at the beginning of the second quarter of 2023.

Asset Quality

Nonperforming loans totaled $7.5 million, or 0.23% of total loans, at June 30, 2023, compared with $6.5 million, or 0.20% of total loans, at March 31, 2023, and $3.4 million, or 0.14% of total loans, at June 30, 2022. The $1.0 million increase in nonperforming loans from March 31, 2023 was primarily attributable to a $1.3 million increase in nonaccrual one-to-four family residential real estate loans.

The Company recorded a negative provision for credit losses of $0.2 million for the second quarter of 2023. The negative provision for credit losses primarily reflects a $1.1 million decrease in specific reserves, a $1.1 million increase in required reserves driven by growth of the loan portfolio and unfunded commitments, a $0.4 million decrease in required reserves resulting from changes in economic and qualitative factors, a $0.2 million increase in reserves on debt securities available-for-sale, related to one bank subordinated debt security, and net recoveries of $0.1 million.

The Company had net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2023, compared to net recoveries of $0.1 million, or (0.02)% of average loans on an annualized basis, for the first quarter of 2023, and net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022.

HBT Financial, Inc.

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The Company’s allowance for credit losses was 1.17% of total loans and 502% of nonperforming loans at June 30, 2023, compared with 1.21% of total loans and 595% of nonperforming loans at March 31, 2023.

Stock Repurchase Program

During the second quarter of 2023, the Company repurchased 229,502 shares of its common stock at a weighted average price of $18.07 under its stock repurchase program. The Company’s Board of Directors have authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program in effect until January 1, 2024. As of June 30, 2023, the Company had $9.3 million remaining under the current stock repurchase authorization.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Illinois and Eastern Iowa through 67 full-service branches. As of June 30, 2023, HBT had total assets of $5.0 billion, total loans of $3.2 billion, and total deposits of $4.2 billion.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

HBT Financial, Inc.

Page 5 of 15

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof (including the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB (including the Company’s adoption of CECL methodology); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

CONTACT:

Peter Chapman

HBTIR@hbtbank.com

(888) 897-2276

HBT Financial, Inc.

Page 6 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


		As of or for the Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands, except per share data)
Interest and dividend income		$	56,768		$	51,779		$	35,757		$	108,547		$	69,092
Interest expense			7,896			4,942			1,384			12,838			2,791
Net interest income			48,872			46,837			34,373			95,709			66,301
Provision for credit losses			(230)			6,210			145			5,980			(439)
Net interest income after provision for credit losses			49,102			40,627			34,228			89,729			66,740
Noninterest income			9,914			7,437			8,551			17,351			18,594
Noninterest expense			33,973			35,933			23,842			69,906			47,999
Income before income tax expense			25,043			12,131			18,937			37,174			37,335
Income tax expense			6,570			2,923			4,852			9,493			9,646
Net income		$	18,473		$	9,208		$	14,085		$	27,681		$	27,689

Earnings per share - Basic		$	0.58		$	0.30		$	0.49		$	0.88		$	0.96
Earnings per share - Diluted			0.58			0.30			0.49			0.88			0.95

Adjusted net income ^(1)^		$	18,772		$	19,859		$	13,836		$	38,631		$	26,063
Adjusted earnings per share - Basic ^(1)^			0.59			0.64			0.48			1.23			0.90
Adjusted earnings per share - Diluted ^(1)^			0.58			0.64			0.48			1.22			0.90

Book value per share		$	14.15		$	14.02		$	12.97
Tangible book value per share ^(1)^			11.58			11.45			11.90

Shares of common stock outstanding			31,865,868			32,095,370			28,831,197
Weighted average shares of common stock outstanding			31,980,133			30,977,204			28,891,202			31,481,439			28,938,634

SUMMARY RATIOS
Net interest margin *			4.16	%		4.20	%		3.34	%		4.18	%		3.21	%
Net interest margin (tax equivalent basis) * ^(1)(2)^			4.22			4.26			3.39			4.24			3.26

Efficiency ratio			56.57	%		65.27	%		54.97	%		60.74	%		55.96	%
Efficiency ratio (tax equivalent basis) ^(1)(2)^			55.89			64.43			54.22			59.99			55.23

Loan to deposit ratio			77.91	%		74.13	%		66.23	%

Return on average assets *			1.49	%		0.78	%		1.32	%		1.15	%		1.29	%
Return on average stockholders' equity *			16.30			8.84			14.92			12.73			14.23
Return on average tangible common equity * ^(1)^			19.91			10.45			16.25			15.31			15.45

Adjusted return on average assets * ^(1)^			1.51	%		1.69	%		1.29	%		1.60	%		1.22	%
Adjusted return on average stockholders' equity * ^(1)^			16.57			19.08			14.66			17.77			13.40
Adjusted return on average tangible common equity * ^(1)^			20.23			22.55			15.96			21.36			14.55

CAPITAL
Total capital to risk-weighted assets			15.03	%		15.11	%		16.76	%
Tier 1 capital to risk-weighted assets			13.12			13.16			14.59
Common equity tier 1 capital ratio			11.78			11.79			13.36
Tier 1 leverage ratio			10.07			10.29			10.05
Total stockholders' equity to total assets			9.06			8.98			8.85
Tangible common equity to tangible assets ^(1)^			7.54			7.45			8.18

ASSET QUALITY
Net charge-offs (recoveries) to average loans, before allowance for credit losses			(0.01)	%		(0.02)	%		(0.01)	%		(0.01)	%		(0.10)	%
Allowance for credit losses to loans, before allowance for credit losses			1.17			1.21			1.01
Nonperforming loans to loans, before allowance for credit losses			0.23			0.20			0.14
Nonperforming assets to total assets			0.21			0.20			0.15

* Annualized measure.

(1)	See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2)	On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
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HBT Financial, Inc.

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HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Statements of Income


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
INTEREST AND DIVIDEND INCOME		(dollars in thousands, except per share data)
Loans, including fees:
Taxable		$	47,149		$	42,159		$	27,843		$	89,308		$	54,649
Federally tax exempt			1,040			952			679			1,992			1,341
Securities:
Taxable			6,518			6,616			5,663			13,134			10,312
Federally tax exempt			1,162			1,197			1,138			2,359			2,178
Interest-bearing deposits in bank			781			739			420			1,520			579
Other interest and dividend income			118			116			14			234			33
Total interest and dividend income			56,768			51,779			35,757			108,547			69,092

INTEREST EXPENSE
Deposits			4,323			2,374			506			6,697			1,075
Securities sold under agreements to repurchase			34			38			8			72			17
Borrowings			2,189			1,297			1			3,486			2
Subordinated notes			469			470			469			939			939
Junior subordinated debentures issued to capital trusts			881			763			400			1,644			758
Total interest expense			7,896			4,942			1,384			12,838			2,791
Net interest income			48,872			46,837			34,373			95,709			66,301
PROVISION FOR CREDIT LOSSES			(230)			6,210			145			5,980			(439)
Net interest income after provision for credit losses			49,102			40,627			34,228			89,729			66,740

NONINTEREST INCOME
Card income			2,905			2,658			2,714			5,563			5,118
Wealth management fees			2,279			2,338			2,322			4,617			4,611
Service charges on deposit accounts			1,919			1,871			1,792			3,790			3,444
Mortgage servicing			1,254			1,099			661			2,353			1,319
Mortgage servicing rights fair value adjustment			141			(624)			366			(483)			2,095
Gains on sale of mortgage loans			373			276			326			649			913
Realized gains (losses) on sales of securities			—			(1,007)			—			(1,007)			—
Unrealized gains (losses) on equity securities			7			(22)			(153)			(15)			(340)
Gains (losses) on foreclosed assets			(97)			(10)			(7)			(107)			33
Gains (losses) on other assets			109			—			(43)			109			150
Income on bank owned life insurance			147			115			41			262			81
Other noninterest income			877			743			532			1,620			1,170
Total noninterest income			9,914			7,437			8,551			17,351			18,594

NONINTEREST EXPENSE
Salaries			16,660			19,411			12,936			36,071			25,737
Employee benefits			2,707			2,335			1,984			5,042			4,428
Occupancy of bank premises			2,785			2,102			1,741			4,887			3,801
Furniture and equipment			809			659			623			1,468			1,175
Data processing			2,883			4,323			1,990			7,206			3,643
Marketing and customer relations			1,359			836			1,205			2,195			2,056
Amortization of intangible assets			720			510			245			1,230			490
FDIC insurance			630			563			298			1,193			586
Loan collection and servicing			348			278			278			626			435
Foreclosed assets			97			61			31			158			163
Other noninterest expense			4,975			4,855			2,511			9,830			5,485
Total noninterest expense			33,973			35,933			23,842			69,906			47,999
INCOME BEFORE INCOME TAX EXPENSE			25,043			12,131			18,937			37,174			37,335
INCOME TAX EXPENSE			6,570			2,923			4,852			9,493			9,646
NET INCOME		$	18,473		$	9,208		$	14,085		$	27,681		$	27,689

EARNINGS PER SHARE - BASIC		$	0.58		$	0.30		$	0.49		$	0.88		$	0.96
EARNINGS PER SHARE - DILUTED		$	0.58		$	0.30		$	0.49		$	0.88		$	0.95
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			31,980,133			30,977,204			28,891,202			31,481,439			28,938,634

HBT Financial, Inc.

Page 8 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets


	June 30,			March 31,		****	June 30,
	2023		****	2023		** **	2022
	(dollars in thousands)
ASSETS
Cash and due from banks	$	28,044		$	35,244		$	25,478
Interest-bearing deposits with banks		81,764			141,868			134,553
Cash and cash equivalents		109,808			177,112			160,031

Interest-bearing time deposits with banks		—			249			—
Debt securities available-for-sale, at fair value		822,788			854,622			924,706
Debt securities held-to-maturity		533,231			536,429			548,236
Equity securities with readily determinable fair value		3,152			3,145			3,103
Equity securities with no readily determinable fair value		2,275			1,980			1,952
Restricted stock, at cost		11,345			4,991			2,813
Loans held for sale		8,829			5,130			5,312

Loans, before allowance for credit losses		3,244,655			3,195,540			2,451,826
Allowance for credit losses		(37,814)			(38,776)			(24,734)
Loans, net of allowance for credit losses		3,206,841			3,156,764			2,427,092

Bank owned life insurance		23,594			23,447			7,474
Bank premises and equipment, net		65,029			65,119			51,433
Bank premises held for sale		35			235			319
Foreclosed assets		3,080			3,356			2,891
Goodwill		59,876			59,876			29,322
Intangible assets, net		22,122			22,842			1,453
Mortgage servicing rights, at fair value		20,133			19,992			10,089
Investments in unconsolidated subsidiaries		1,614			1,614			1,165
Accrued interest receivable		19,900			20,301			14,263
Other assets		62,158			56,617			32,324
Total assets	$	4,975,810		$	5,013,821		$	4,223,978

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,125,823		$	1,218,888		$	1,028,790
Interest-bearing		3,038,700			3,091,633			2,673,196
Total deposits		4,164,523			4,310,521			3,701,986

Securities sold under agreements to repurchase		38,729			34,919			51,091
Federal Home Loan Bank advances		177,572			75,183			—
Subordinated notes		39,435			39,415			39,356
Junior subordinated debentures issued to capital trusts		52,760			52,746			37,747
Other liabilities		51,939			50,939			19,989
Total liabilities		4,524,958			4,563,723			3,850,169

Stockholders' Equity
Common stock		327			327			293
Surplus		294,875			294,441			222,087
Retained earnings		241,777			228,782			212,506
Accumulated other comprehensive income (loss)		(70,662)			(62,175)			(52,820)
Treasury stock at cost		(15,465)			(11,277)			(8,257)
Total stockholders’ equity		450,852			450,098			373,809
Total liabilities and stockholders’ equity	$	4,975,810		$	5,013,821		$	4,223,978

SHARE INFORMATION
Shares of common stock outstanding		31,865,868			32,095,370			28,831,197

HBT Financial, Inc.

Page 9 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,			March 31,		****	June 30,
	2023		****	2023		****	2022
	(dollars in thousands)
LOANS
Commercial and industrial	$	385,768		$	333,013		$	249,839
Commercial real estate - owner occupied		303,522			317,103			228,997
Commercial real estate - non-owner occupied		882,598			854,024			656,093
Construction and land development		335,262			389,142			332,041
Multi-family		375,536			362,672			269,452
One-to-four family residential		482,442			482,732			325,047
Agricultural and farmland		259,858			243,357			230,370
Municipal, consumer, and other		219,669			213,497			159,987
Loans, before allowance for credit losses	$	3,244,655		$	3,195,540		$	2,451,826

PPP LOANS (included above)
Commercial and industrial	$	22		$	25		$	2,823
Agricultural and farmland		—			—			9
Total PPP Loans	$	22		$	25		$	2,832


	June 30,			March 31,		****	June 30,
	2023		****	2023		****	2022
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	1,125,823		$	1,218,888		$	1,028,790
Interest-bearing demand		1,181,187			1,270,454			1,162,292
Money market		730,652			662,088			581,058
Savings		657,506			738,719			654,953
Time		469,355			420,372			274,893
Total deposits	$	4,164,523		$	4,310,521		$	3,701,986

HBT Financial, Inc.

Page 10 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


		Three Months Ended
	****	June 30, 2023						March 31, 2023						June 30, 2022
		Average						Average						Average
		Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *
	****	(dollars in thousands)
ASSETS
Loans		$	3,238,774	$	48,189	5.97	%	$	3,012,320	$	43,111	5.80	%	$	2,467,851	$	28,522	4.64	%
Securities			1,384,180		7,680	2.23			1,411,613		7,813	2.24			1,422,096		6,801	1.92
Deposits with banks			84,366		781	3.71			92,363		739	3.24			240,692		420	0.70
Other			8,577		118	5.52			7,425		116	6.33			2,809		14	2.07
Total interest-earning assets			4,715,897	$	56,768	4.83	%		4,523,721	$	51,779	4.64	%		4,133,448	$	35,757	3.47	%
Allowance for credit losses			(39,484)						(33,301)						(24,579)
Noninterest-earning assets			299,622						274,870						177,433
Total assets		$	4,976,035					$	4,765,290					$	4,286,302

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,224,285	$	683	0.22	%	$	1,230,644	$	458	0.15	%	$	1,159,077	$	144	0.05	%
Money market			675,530		1,516	0.90			634,608		935	0.60			582,016		110	0.08
Savings			687,014		189	0.11			709,862		178	0.10			661,661		52	0.03
Time			447,146		1,935	1.74			356,779		803	0.91			284,880		200	0.28
Total interest-bearing deposits			3,033,975		4,323	0.57			2,931,893		2,374	0.33			2,687,634		506	0.08
Securities sold under agreements to repurchase			34,170		34	0.40			39,619		38	0.38			51,057		8	0.07
Borrowings			173,040		2,189	5.07			113,896		1,297	4.62			440		1	1.34
Subordinated notes			39,424		469	4.78			39,403		470	4.83			39,346		469	4.79
Junior subordinated debentures issued to capital trusts			52,752		881	6.70			47,586		763	6.50			37,738		400	4.26
Total interest-bearing liabilities			3,333,361	$	7,896	0.95	%		3,172,397	$	4,942	0.63	%		2,816,215	$	1,384	0.20	%
Noninterest-bearing deposits			1,145,089						1,121,365						1,072,883
Noninterest-bearing liabilities			43,080						49,316						18,673
Total liabilities			4,521,530						4,343,078						3,907,771
Stockholders' Equity			454,505						422,212						378,531
Total liabilities and stockholders’ equity		$	4,976,035					$	4,765,290					$	4,286,302

Net interest income/Net interest margin ^(1)^				$	48,872	4.16	%			$	46,837	4.20	%			$	34,373	3.34	%
Tax-equivalent adjustment ^(2)^					715	0.06					702	0.06					598	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^(2) (3)^				$	49,587	4.22	%			$	47,539	4.26	%			$	34,971	3.39	%
Net interest rate spread ^(4)^						3.88	%					4.01	%					3.27	%
Net interest-earning assets ^(5)^		$	1,382,536					$	1,351,324					$	1,317,233
Ratio of interest-earning assets to interest-bearing liabilities			1.41						1.43						1.47
Cost of total deposits						0.41	%					0.24	%					0.05	%
Cost of funds						0.71						0.47						0.14

* Annualized measure.

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

HBT Financial, Inc.

Page 11 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


		Six Months Ended
	****	June 30, 2023						June 30, 2022
		Average						Average
		Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *
	****	(dollars in thousands)
ASSETS
Loans		$	3,126,173	$	91,300	5.89	%	$	2,487,320	$	55,990	4.54	%
Securities			1,397,821		15,493	2.24			1,372,284		12,490	1.84
Deposits with banks			88,343		1,520	3.47			305,053		579	0.38
Other			8,004		234	5.89			2,775		33	2.43
Total interest-earning assets			4,620,341	$	108,547	4.74	%		4,167,432	$	69,092	3.34	%
Allowance for credit losses			(36,410)						(24,340)
Noninterest-earning assets			287,314						171,624
Total assets		$	4,871,245					$	4,314,716

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,227,447	$	1,141	0.19	%	$	1,151,495	$	286	0.05	%
Money market			655,182		2,451	0.75			590,098		231	0.08
Savings			698,375		367	0.11			655,645		102	0.03
Time			402,212		2,738	1.37			297,706		456	0.31
Total interest-bearing deposits			2,983,216		6,697	0.45			2,694,944		1,075	0.08
Securities sold under agreements to repurchase			36,879		72	0.39			52,050		17	0.07
Borrowings			143,632		3,486	4.89			470		2	1.01
Subordinated notes			39,414		939	4.81			39,335		939	4.82
Junior subordinated debentures issued to capital trusts			50,183		1,644	6.61			37,730		758	4.05
Total interest-bearing liabilities			3,253,324	$	12,838	0.80	%		2,824,529	$	2,791	0.20	%
Noninterest-bearing deposits			1,133,292						1,075,387
Noninterest-bearing liabilities			46,181						22,466
Total liabilities			4,432,797						3,922,382
Stockholders' Equity			438,448						392,334
Total liabilities and stockholders’ equity		$	4,871,245						4,314,716

Net interest income/Net interest margin ^(1)^				$	95,709	4.18	%			$	66,301	3.21	%
Tax-equivalent adjustment ^(2)^					1,417	0.06					1,127	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^(2) (3)^				$	97,126	4.24	%			$	67,428	3.26	%
Net interest rate spread ^(4)^						3.94	%					3.14	%
Net interest-earning assets ^(5)^		$	1,367,017					$	1,342,903
Ratio of interest-earning assets to interest-bearing liabilities			1.42						1.48
Cost of total deposits						0.33	%					0.06	%
Cost of funds						0.59						0.14

* Annualized measure.

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

HBT Financial, Inc.

Page 12 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,			March 31,			June 30,
	2023		****	2023		****	2022		****
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	7,534		$	6,508		$	3,248
Past due 90 days or more, still accruing ^(1)^		1			10			182
Total nonperforming loans		7,535			6,518			3,430
Foreclosed assets		3,080			3,356			2,891
Total nonperforming assets	$	10,615		$	9,874		$	6,321

Allowance for credit losses	$	37,814		$	38,776		$	24,734
Loans, before allowance for credit losses		3,244,655			3,195,540			2,451,826

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.17	%		1.21	%		1.01	%
Allowance for credit losses to nonaccrual loans		501.91			595.82			761.51
Allowance for credit losses to nonperforming loans		501.84			594.91			721.11
Nonaccrual loans to loans, before allowance for credit losses		0.23			0.20			0.13
Nonperforming loans to loans, before allowance for credit losses		0.23			0.20			0.14
Nonperforming assets to total assets		0.21			0.20			0.15
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.33			0.31			0.26

(1)	Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $23 thousand as of June 30, 2022.


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
ALLOWANCE FOR CREDIT LOSSES ON LOANS		(dollars in thousands)
Beginning balance		$	38,776		$	25,333		$	24,508		$	25,333		$	23,936
Adoption of ASC 326			—			6,983			—			6,983			—
PCD allowance established in acquisition			—			1,247			—			1,247			—
Provision for credit losses			(1,080)			5,101			145			4,021			(439)
Charge-offs			(179)			(142)			(159)			(321)			(293)
Recoveries			297			254			240			551			1,530
Ending balance		$	37,814		$	38,776		$	24,734		$	37,814		$	24,734

Net charge-offs (recoveries)		$	(118)		$	(112)		$	(81)		$	(230)		$	(1,237)
Average loans, before allowance for credit losses			3,238,774			3,012,320			2,467,851			3,126,173			2,487,320

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

* Annualized measure.


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
PROVISION FOR CREDIT LOSSES		(dollars in thousands)
Loans ^(1)^		$	(1,080)		$	5,101		$	145		$	4,021		$	(439)
Unfunded lending-related commitments ^(1)^			650			509			—			1,159			—
Debt securities			200			600			—			800			—
Total provision for credit losses		$	(230)		$	6,210		$	145		$	5,980		$	(439)

(1)	Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

HBT Financial, Inc.

Page 13 of 15

Reconciliation of Non-GAAP Financial Measures –

Adjusted Net Income and Adjusted Return on Average Assets


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands)
Net income		$	18,473		$	9,208		$	14,085		$	27,681		$	27,689
Adjustments:
Acquisition expenses ^(1)^			(627)			(13,064)			—			(13,691)			—
Gains (losses) on sales of closed branch premises			75			—			(18)			75			179
Realized gains (losses) on sales of securities			—			(1,007)			—			(1,007)			—
Mortgage servicing rights fair value adjustment			141			(624)			366			(483)			2,095
Total adjustments			(411)			(14,695)			348			(15,106)			2,274
Tax effect of adjustments			112			4,044			(99)			4,156			(648)
Less adjustments, after tax effect			(299)			(10,651)			249			(10,950)			1,626
Adjusted net income		$	18,772		$	19,859		$	13,836		$	38,631		$	26,063

Average assets		$	4,976,035		$	4,765,290		$	4,286,302		$	4,871,245		$	4,314,716

Return on average assets *			1.49	%		0.78	%		1.32	%		1.15	%		1.29	%
Adjusted return on average assets *			1.51			1.69			1.29			1.60			1.22

* Annualized measure.

(1)	Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands, except per share data)
Numerator:
Net income		$	18,473		$	9,208		$	14,085		$	27,681		$	27,689
Earnings allocated to participating securities ^(1)^			(11)			(5)			(17)			(16)			(34)
Numerator for earnings per share - basic and diluted		$	18,462		$	9,203		$	14,068		$	27,665		$	27,655

Adjusted net income		$	18,772		$	19,859		$	13,836		$	38,631		$	26,063
Earnings allocated to participating securities ^(1)^			(10)			(13)			(17)			(23)			(32)
Numerator for adjusted earnings per share - basic and diluted		$	18,762		$	19,846		$	13,819		$	38,608		$	26,031

Denominator:
Weighted average common shares outstanding			31,980,133			30,977,204			28,891,202			31,481,439			28,938,634
Dilutive effect of outstanding restricted stock units			99,850			69,947			53,674			84,981			48,688
Weighted average common shares outstanding, including all dilutive potential shares			32,079,983			31,047,151			28,944,876			31,566,420			28,987,322

Earnings per share - Basic		$	0.58		$	0.30		$	0.49		$	0.88		$	0.96
Earnings per share - Diluted		$	0.58		$	0.30		$	0.49		$	0.88		$	0.95

Adjusted earnings per share - Basic		$	0.59		$	0.64		$	0.48		$	1.23		$	0.90
Adjusted earnings per share - Diluted		$	0.58		$	0.64		$	0.48		$	1.22		$	0.90

(1)

The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

HBT Financial, Inc.

Page 14 of 15

Reconciliation of Non-GAAP Financial Measures –

Net Interest Income and Net Interest Margin (Tax Equivalent Basis)


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income		$	48,872		$	46,837		$	34,373		$	95,709		$	66,301
Tax-equivalent adjustment ^(1)^			715			702			598			1,417			1,127
Net interest income (tax equivalent basis) ^(1)^		$	49,587		$	47,539		$	34,971		$	97,126		$	67,428

Net interest margin (tax equivalent basis)
Net interest margin *			4.16	%		4.20	%		3.34	%		4.18	%		3.21	%
Tax-equivalent adjustment * ^(1)^			0.06			0.06			0.05			0.06			0.05
Net interest margin (tax equivalent basis) * ^(1)^			4.22	%		4.26	%		3.39	%		4.24	%		3.26	%

Average interest-earning assets		$	4,715,897		$	4,523,721		$	4,133,448		$	4,620,341		$	4,167,432

* Annualized measure.

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

Reconciliation of Non-GAAP Financial Measures –

Efficiency Ratio (Tax Equivalent Basis)


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense		$	33,973		$	35,933		$	23,842		$	69,906		$	47,999
Less: amortization of intangible assets			720			510			245			1,230			490
Adjusted noninterest expense		$	33,253		$	35,423		$	23,597		$	68,676		$	47,509

Net interest income		$	48,872		$	46,837		$	34,373		$	95,709		$	66,301
Total noninterest income			9,914			7,437			8,551			17,351			18,594
Operating revenue			58,786			54,274			42,924			113,060			84,895
Tax-equivalent adjustment ^(1)^			715			702			598			1,417			1,127
Operating revenue (tax equivalent basis) ^(1)^		$	59,501		$	54,976		$	43,522		$	114,477		$	86,022

Efficiency ratio			56.57	%		65.27	%		54.97	%		60.74	%		55.96	%
Efficiency ratio (tax equivalent basis) ^(1)^			55.89			64.43			54.22			59.99			55.23

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

HBT Financial, Inc.

Page 15 of 15

Reconciliation of Non-GAAP Financial Measures –

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share


	June 30,			March 31,		****	June 30,
	2023		****	2023		****	2022
	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	450,852		$	450,098		$	373,809
Less: Goodwill		59,876			59,876			29,322
Less: Intangible assets, net		22,122			22,842			1,453
Tangible common equity	$	368,854		$	367,380		$	343,034

Tangible assets
Total assets	$	4,975,810		$	5,013,821		$	4,223,978
Less: Goodwill		59,876			59,876			29,322
Less: Intangible assets, net		22,122			22,842			1,453
Tangible assets	$	4,893,812		$	4,931,103		$	4,193,203

Total stockholders' equity to total assets		9.06	%		8.98	%		8.85	%
Tangible common equity to tangible assets		7.54			7.45			8.18

Shares of common stock outstanding		31,865,868			32,095,370			28,831,197

Book value per share	$	14.15		$	14.02		$	12.97
Tangible book value per share		11.58			11.45			11.90

Reconciliation of Non-GAAP Financial Measures –

Return on Average Tangible Common Equity,

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


		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
	****	2023		****	2023		****	2022		****	2023		****	2022
		(dollars in thousands)
Average tangible common equity
Total stockholders' equity		$	454,505		$	422,212		$	378,531		$	438,448		$	392,334
Less: Goodwill			59,876			49,352			29,322			54,643			29,322
Less: Intangible assets, net			22,520			15,635			1,597			19,097			1,720
Average tangible common equity		$	372,109		$	357,225		$	347,612		$	364,708		$	361,292

Net income		$	18,473		$	9,208		$	14,085		$	27,681		$	27,689
Adjusted net income			18,772			19,859			13,836			38,631			26,063

Return on average stockholders' equity *			16.30	%		8.84	%		14.92	%		12.73	%		14.23	%
Return on average tangible common equity *			19.91			10.45			16.25			15.31			15.45

Adjusted return on average stockholders' equity *			16.57	%		19.08	%		14.66	%		17.77	%		13.40	%
Adjusted return on average tangible common equity *			20.23			22.55			15.96			21.36			14.55

* Annualized measure.

Exhibit 99.2

S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L<br>Q2 2023 Results<br>Presentation<br>J u l y 2 4 , 2023<br>HBT Financial, Inc.
Forward-Looking Statements<br>Readers should note that in addition to the historical information contained herein, this presentation contains, and future oral and written statements of HBT Financial, Inc. (the “Company” or “HBT”)<br>and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended,<br>and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose,"<br>"may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue,“ or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the<br>date of this presentation, 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<br>events, or otherwise.<br>Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies<br>(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19<br>pandemic in the United States), acts of war or other threats thereof (including the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability<br>in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state<br>and federal regulatory agencies, the FASB or the PCAOB (including the Company’s adoption of CECL methodology); (iv) changes in state and federal laws, regulations and governmental policies<br>concerning the Company’s general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including<br>the impact of LIBOR phase-out); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to<br>attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to<br>realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer<br>spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii)<br>fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the<br>concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing<br>assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security<br>controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking<br>statements included in this presentation 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.<br>Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the<br>Securities and Exchange Commission.<br>Non-GAAP Financial Measures<br>This presentation includes certain non-GAAP financial measures. While the Company believes these are useful measures for investors, they are not presented in accordance with GAAP. You should<br>not consider non-GAAP measures in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Because not all companies use<br>identical calculations, the presentation herein of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Tax equivalent adjustments assume a<br>federal tax rate of 21% and state tax rate of 9.5%. For a reconciliation of the non-GAAP measures we use to the most closely comparable GAAP measures, see the Appendix to this presentation.<br>1
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Q2 2023 Highlights<br>M&A continues to<br>contribute to value of<br>HBT franchise<br>◼ Full impact of addition of Town and Country operations reflected in Q2 2023 results<br>➢ Successfully completed core system conversion in April 2023<br>➢ Substantially all cost saves realized beginning in May 2023<br>Strong profitability<br>◼ Net income of $18.5 million, or $0.58 per diluted share; return on average assets (ROAA) of<br>1.49% and return on average tangible common equity (ROATCE)1 of 19.91%<br>◼ Adjusted net income1 of $18.8 million, or $0.58 per diluted share; adjusted ROAA1 of 1.51% and<br>adjusted ROATCE1 of 20.23%<br>Diversified deposit<br>base and excellent<br>asset quality<br>◼ Maintained a strong net interest margin of 4.16% and a net interest margin (tax equivalent basis)1<br>of 4.22%, both down only 4 basis points compared to Q1 2023<br>◼ Cost of funds increased 24 basis points, to 0.71%, and total cost of deposits increased 17 basis<br>points, to 0.41%, while average yield on earning assets increased by 19 basis points, to 4.83%<br>◼ Maintained excellent asset quality with the ratio of nonperforming assets to total assets of 0.21%<br>and net recoveries to average loans of (0.01)%<br>◼ Total loans increased $49.1 million, or 1.5%, compared to Q1 2023<br>1 See "Non-GAAP reconciliations" in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures<br>2
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Noninterest-bearing<br>demand<br>27%<br>Interest-bearing<br>demand<br>28%<br>Money<br>Market<br>18%<br>Savings<br>16%<br>Time<br>11%<br>Financial highlights ($mm)<br>C&I<br>12%<br>CRE–Owner<br>occupied<br>9%<br>CRE–Non-owner<br>occupied<br>27%<br>C&D<br>10%<br>Multi-family<br>12%<br>1-4 Family<br>residential<br>15%<br>Agricultural &<br>farmland<br>8%<br>Municipal,<br>consumer & other<br>7%<br>Company Snapshot<br>✓ Company incorporated in 1982 from base of family-owned banks and<br>completed its IPO in October 2019<br>✓ Headquartered in Bloomington, Illinois, with operations throughout<br>Illinois and Eastern Iowa<br>✓ Strong, granular, and low-cost deposit franchise with 41bps cost of<br>deposits, 97% core deposits1<br>✓ Conservative credit culture, with net recoveries to average loans of<br>8bps for the year ended December 31, 2022 and 1bp for 6 months<br>ended June 30, 2023<br>✓ High profitability sustained through cycles<br>Overview<br>As of or for the period ended 2020 2021 2022 1H23<br>Total assets $3,667 $4,314 $4,287 $4,976<br>Total loans 2,247 2,500 2,620 3,245<br>Total deposits 3,131 3,738 3,587 4,165<br>Core deposits (%)1 99.1% 98.3% 99.2% 96.9%<br>Loans-to-deposits 71.8% 66.9% 73.0% 77.9%<br>CET1 (%) 13.1% 13.4% 13.1% 11.8%<br>TCE / TA1 9.3% 8.9% 8.1% 7.5%<br>Adjusted ROAA1 1.15% 1.43% 1.31% 1.60%<br>Adjusted ROATCE1 12.3% 16.1% 15.8% 21.36%<br>NIM (FTE)1 3.60% 3.23% 3.60% 4.24%<br>Yield on loans 4.69% 4.68% 4.91% 5.89%<br>Cost of deposits 0.14% 0.07% 0.07% 0.33%<br>Cost of funds 0.21% 0.16% 0.19% 0.59%<br>Efficiency ratio (FTE)1 58.9% 55.8% 56.9% 60.0%<br>NCOs / loans 0.04% (0.01)% (0.08)% (0.01)%<br>ACL / loans 1.42% 0.96% 0.97% 1.17%<br>NPLs / loans 0.44% 0.11% 0.08% 0.23%<br>NPAs / loans + OREO 0.63% 0.24% 0.20% 0.33%<br>=<br>Balance sheet Key performance<br>indicators Credit<br>Loan composition<br>Note: Financial data as of and for the three months ended June 30, 2023 unless otherwise indicated; Annualized measure; 1 Non-GAAP financial measure. See “Non-GAAP Reconciliations”<br>in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.<br>Commercial<br>Commercial<br>Real Estate<br>Deposit composition<br>3
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Earnings Overview<br>4<br>($000) 2Q23<br>Non-GAAP<br>Adjustments1<br>Adjusted<br>2Q231<br>Interest and dividend income $56,768 -- $56,768<br>Interest expense 7,896 -- 7,896<br>Net interest income 48,872 -- 48,872<br>Provision for credit losses (230) -- (230)<br>Net interest income after<br>provision for credit losses 49,102 -- 49,102<br>Noninterest income 9,914 (216) 9,698<br>Noninterest expense 33,973 (627) 33,346<br>Income before income tax<br>expense<br>25,043 411 25,454<br>Income tax expense 6,570 112 6,682<br>Net income $18,473 299 18,772<br>◼ Net interest income benefited from a full quarter’s impact<br>of the Town and Country merger and asset repricing, but<br>was partially offset by increased funding costs<br>◼ Net interest margin decreased 4 basis points to 4.16%<br>◼ Increased reserve requirements driven by growth in<br>loans and unfunded loan commitments more than offset<br>by decrease in specific reserves and improved economic<br>forecast<br>◼ Noninterest income increased by $2.5 million, primarily<br>attributable to absence of $1.0 million realized loss on<br>sale of securities included in first quarter of 2023 results<br>and a $0.8 million change in the mortgage servicing<br>rights fair value adjustment<br>◼ Excluding acquisition-related expenses, noninterest<br>expense increased by $4.6 million primarily attributable<br>to $1.6 million of legal fees and accruals related to<br>pending legal matters previously disclosed, the second<br>quarter of 2023 results including a full quarter’s impact of<br>Town and Country’s operations, and annual raises which<br>took effect in March 2023<br>Highlights Relative to Previous Quarter<br>2Q23 NIM Analysis<br> Annualized measures; 1 Non-GAAP financial measure. See “Non-GAAP Reconciliations” in the Appendix for reconciliation of non-GAAP financial measures to their most closely<br>comparable GAAP financial measures; 2 Reflects contribution of loan interest income to net interest margin, excluding loan discount accretion and nonaccrual interest recoveries.<br>2
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0.25%<br>5.16%<br>0.07%<br>0.41%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23<br>Fed Funds Rate Cost of Deposits <br>Deposits Overview<br>5<br>Deposit beta (4Q21 to 2Q23): 6.9%<br>Source: St. Louis FRED<br> Annualized measure; 1 Represents quarterly average of federal funds target rate upper limit; 2 Weighted average spot interest rates do not include impact of purchase accounting<br>adjustment amortization<br>Deposit Base Highlights<br>◼ Highly granular deposit base with cost increases in line with<br>expectations during the second quarter of 2023<br>◼ Top 100 depositors, by balance, make up 13% of our deposit<br>base, and the top 200 depositors make up 16%<br>◼ Account balances consist of 67% retail, 23% business, and 10%<br>public funds as of June 30, 2023<br>◼ Uninsured and uncollateralized deposits estimated to be<br>$535 million, or 13% of total deposits, as of June 30, 2023<br>Interest<br>Costs*<br>2Q23<br>Spot Interest<br>Rates2<br>As of 6/30/23<br>Interest-bearing demand 0.22% 0.30%<br>Money market 0.90% 1.33%<br>Savings 0.11% 0.11%<br>Time 1.74% 2.12%<br>Total interest-bearing deposits 0.57% 0.79%<br>Total deposits 0.41% 0.58%<br>1
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◼ Second quarter 2023 net interest margin decreased 4 basis<br>points from the prior quarter, primarily attributable to higher<br>funding costs which outpaced an increase in asset yields<br>◼ 37% of the loan portfolio matures or reprices within the next<br>12 months<br>◼ Loan mix is 64% fixed rate and 36% variable rate, and 70%<br>of variable rate loans have floors<br>Net Interest Margin<br>Annual Quarterly<br>6<br>* Annualized measure; 1 Tax-equivalent basis metric; see "Non-GAAP reconciliations" in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial<br>measures.<br>3bps 2bps 2bps 7bps<br>6bps 1bp 0bps 0bps<br>7bps 2bps 3bps 2bps<br>N/A 9bps 24bps 4bps<br>8bps<br>0bps<br>9bps<br>0bps<br>3.34%<br>3.65%<br>4.10% 4.20% 4.16%<br>3.39%<br>3.72%<br>4.17% 4.26% 4.22%<br>2Q22 3Q22 4Q22 1Q23 2Q23<br>4.31%<br>3.54%<br>3.18%<br>3.54%<br>4.18%<br>4.38%<br>3.60%<br>3.23%<br>3.60%<br>4.24%<br>2019 2020 2021 2022 1H23<br>FTE NIM1<br>GAAP NIM<br>Accretion of acquired loan discounts contribution to NIM<br>PPP loan fees contribution to NIM<br>FTE NIM1<br>GAAP NIM<br>Accretion of acquired loan discounts contribution to NIM<br>PPP loan fees contribution to NIM<br>30.9%<br>6.2%<br>21.2% 22.6% 19.0%<br><3m 3m-12m<br>12m-3y<br>3y-5y<br>5y+<br>Percentage of Loans Maturing or Repricing<br>Fixed Variable
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Loan Portfolio Overview: Commercial and Commercial Real Estate<br>◼ $1.59 billion portfolio as of June 30, 2023<br>➢ $883 million in non-owner occupied CRE primarily supported<br>by rental cash flow of the underlying properties<br>➢ $335 million in construction and land development loans<br>primarily to developers to sell upon completion or for long-term investment<br>➢ $376 million in multi-family loans secured by 5+ unit<br>apartment buildings<br>◼ Office CRE exposure characterized by solid credit metrics as of<br>June 30, 2023 with only 2.1% rated pass-watch, none rated<br>substandard, and none past due 30 days or more<br>Multi-Family<br>31%<br>Warehouse/<br>Manufacturing<br>13%<br>Retail<br>12%<br>Office<br>10%<br>Hotels<br>7%<br>Senior Living<br>Facilities<br>6%<br>Land and Lots<br>6%<br>1-4 Family<br>Construction<br>3%<br>Medical<br>2%<br>Auto Repair<br>& Dealers<br>2%<br>Other<br>8%<br>Commercial Real Estate Portfolio<br>7<br>Commercial Loan Portfolio<br>◼ $386 million C&I loans outstanding as of June 30, 2023<br>➢ For working capital, asset acquisition, and other business<br>purposes<br>➢ Underwritten primarily based on borrower’s cash flow and majority<br>further supported by collateral and personal guarantees; loans<br>based primarily in-market1<br>◼ $304 million owner-occupied CRE outstanding as of June 30, 2023<br>➢ Primarily underwritten based on cash flow of the business<br>occupying the property and supported by personal guarantees;<br>loans based primarily in-market<br>Health Care and<br>Social<br>Assistance<br>11%<br>Auto Repair &<br>Dealers<br>10%<br>Construction<br>8%<br>Retail Trade-Other<br>7%<br>Real Estate and<br>Rental and<br>Leasing<br>7%<br>Wholesale<br>Trade<br>7%<br>Manufacturing<br>6%<br>Restaurants<br>and Bars<br>6%<br>Finance and<br>Insurance<br>5%<br>Professional,<br>Scientific,<br>and Technical<br>Services<br>5%<br>Arts,<br>Entertainment,<br>and Recreation<br>3%<br>Grain Elevators<br>3%<br>Other<br>22%<br>1 Market area defined as within 60 miles of a branch
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Loan Portfolio Overview: Selected Portfolios<br>Agriculture and Farmland<br>◼ $260 million portfolio as of June 30, 2023<br>◼ Borrower operations focus primarily on corn and soybean<br>production<br>◼ Federal crop insurance programs mitigate production risks<br>◼ No customer accounts for more than 3% of the agriculture<br>portfolio<br>◼ Weighted average LTV on Farmland loans is 59.9%<br>◼ 1.3% is rated substandard as of June 30, 2023<br>◼ Over 70% of agricultural borrowers have been with the<br>Company for at least 10 years, and over half for more than<br>20 years<br>8<br>Municipal, Consumer and Other<br>◼ $220 million portfolio as of June 30, 2023<br>➢ Loans to municipalities are primarily federally tax-exempt<br>➢ Consumer loans include loans to individuals for<br>consumer purposes and typically consist of small<br>balance loans<br>➢ Other loans primarily include loans to nondepository<br>financial institutions<br>◼ Commercial Tax-Exempt - Senior Living<br>➢ $46.1 million portfolio with $4.6 million average loan size<br>➢ Weighted average LTV of 83.1%<br>➢ 34.4% is rated substandard<br>◼ Commercial Tax-Exempt – Medical<br>➢ $28.2 million portfolio with $2.2 million average loan size<br>➢ Weighted average LTV of 39.0%<br>➢ No loans are rated substandard<br>Municipalities<br>21%<br>Commercial<br>Tax-Exempt<br>(Senior Living)<br>21%<br>Commercial<br>Tax-Exempt<br>(Medical)<br>Consumer 13%<br>6%<br>Other<br>39%<br>Farmland<br>63%<br>Crops<br>28%<br>Equipment<br>7%<br>Livestock<br>2%
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Loan Portfolio Overview: ACL and Asset Quality<br>2Q23 ACL Activity ($000)<br>9<br>Watch List and<br>Nonaccrual<br>Loans<br>($000)<br>As of<br>6/30/23<br>As of<br>3/31/23 Change<br>Pass-Watch $93,442 $72,047 $21,395<br>Substandard 72,756 92,702 (19,946)<br>Nonaccrual 7,534 6,508 1,026<br>CECL Methodology and Oversight<br>◼ Discounted cash flow method utilized for majority of loan segments,<br>except weighted average remaining maturity method used for<br>consumer loans<br>◼ Credit loss drivers determined by regression analysis includes<br>company and peer loss data and macroeconomic variables, including<br>unemployment and GDP<br>◼ ACL / Loans of 1.17% as of June 30, 2023<br>◼ ACL Committee provides model governance and oversight<br>ACL on Unfunded Commitments and Debt Securities<br>◼ ACL on unfunded lending-related commitments increased by<br>$0.7 million to $4.1 million during the second quarter of 2023<br>◼ ACL on AFS debt securities increased by $0.2 million to $0.8 million<br>during the second quarter of 2023, related to one bank subordinated<br>debt security
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Wealth Management Overview<br>10<br>Comprehensive Wealth Management Services<br>◼ Proprietary investment management solutions<br>◼ Financial planning<br>◼ Trust and estate administration<br>4.5 4.8<br>5.9 5.7<br>3.3<br>1.6 1.7<br>2.0 2.4<br>0.9<br>0.4<br>0.4<br>0.2<br>0.8<br>0.3<br>0.3<br>0.3<br>0.3<br>0.3<br>0.1<br>$6.8<br>$7.2<br>$8.4<br>$9.2<br>$4.6<br>$0<br>$1<br>$2<br>$3<br>$4<br>$5<br>$6<br>$7<br>$8<br>$9<br>$10<br>2019 2020 2021 2022 1H23<br>Asset Management and Trust Services Agricultural Services - Farm Management<br>Agricultural Services - Real Estate Brokerage Investment Brokerage<br>Total<br>Wealth Management Revenue Trends ($mm)<br>Over $2.3 billion of assets under management or administration as of June 30, 2023<br>Agricultural Services<br>◼ Farm management services: Over 77,000 acres managed<br>◼ Real estate brokerage including auction services<br>◼ Farmland appraisals
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U.S. Treasury<br>12%<br>Book Yield: 1.38%<br>U.S. Gov't Agency<br>10%<br>Book Yield: 2.50%<br>Municipal<br>22%<br>Book Yield:<br>2.06%<br>Agency RMBS<br>21%<br>Book Yield: 2.89%<br>Agency CMBS<br>31%<br>Book Yield: 1.97%<br>Corporate<br>4%<br>Book Yield: 4.42%<br>Securities Portfolio Overview<br>Financial data as of June 30, 2023, unless otherwise indicated<br>11<br>Portfolio Composition<br>Amortized Cost: $1,447mm<br>Book Yield: 2.27%<br>Securities Overview Key investment portfolio metrics<br>($000) AFS HTM Total<br>Amortized Cost $913,908 $533,231 $1,447,139<br>Unrealized Gain/(Loss) (90,320) (63,310) (153,630)<br>Allowance for Credit Losses (800) -- (800)<br>Fair Value 822,788 469,921 1,292,709<br>Book Yield 2.16% 2.45% 2.27%<br>Effective Duration (Years) 3.41 5.20 4.06<br>◼ Company’s debt securities consist primarily of the following<br>types of fixed income instruments:<br>◼ Agency guaranteed MBS: MBS pass-throughs, CMOs, and<br>CMBS<br>◼ Municipal Bonds: weighted average NRSRO credit rating of<br>AA/Aa2<br>◼ Treasury, Government Agency Debentures, and SBA-backed Full Faith and Credit Debt<br>◼ Corporate Bonds: Investment Grade Corporate and Bank<br>Subordinated Debt<br>◼ Investment strategy focused on maximizing returns and<br>managing the Company’s asset sensitivity with high credit<br>quality intermediate duration investments<br>◼ Company emphasizes predictable cash flows that limit faster<br>prepayments when rates decline or extended durations when<br>rates rise
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Capital and Liquidity Overview<br>CET 1 Risk-based Capital Ratio (%)<br>Tangible Common Equity to Tangible Assets (%)1 Liquidity Sources ($000)<br>12.15<br>13.06 13.37 13.07<br>11.78<br>2019 2020 2021 2022 2Q23<br>9.49 9.27<br>8.89<br>8.06<br>7.54<br>2019 2020 2021 2022 2Q23<br>1 Non-GAAP financial measure. See “Non-GAAP Reconciliations” in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial<br>measures.;<br>2 Represents FHLB advance capacity based on loans currently pledged. Additional capacity of approximately $409 million would be available by pledging additional eligible loans.<br>12<br>Liquidity Sources As of 6/30/23<br>Balance of Cash and Cash Equivalents $109,808<br>Market Value of Unpledged Securities 872,642<br>Available FHLB Advance Capacity2 487,899<br>Available Fed Fund Lines of Credit 80,000<br>Total Estimated Sources of Liquidity $1,550,349<br>Capital and Liquidity Highlights<br>◼ Overall capital levels remain strong and well above regulatory<br>requirements.<br>◼ Tangible common equity to tangible assets decreased during the<br>first half of 2023 primarily as a result of the Town and Country<br>acquisition and remains well above internal targets<br>◼ If all unrealized losses on debt securities, regardless of<br>accounting classification, were included in tangible equity,<br>tangible common equity to tangible assets would be 6.67%<br>◼ With the loan to deposit ratio at 78%, there is more than<br>sufficient on-balance sheet liquidity that is also supplemented by<br>multiple untapped liquidity sources
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Near-Term Outlook<br>◼ Completed Town and Country core conversion and substantially all cost savings have been fully realized as of May 2023<br>◼ Loan growth in mid-single digits on an annualized basis expected for remainder of 2023<br>◼ Excluding brokered deposits, deposits are up through July 20, 2023; however, we anticipate some further decrease during the<br>remainder of 2023 as well as a mix shift towards higher cost products<br>◼ Investment portfolio is expected to provide $25 million to $35 million of principal cash flows a quarter for the remainder of 2023<br>with proceeds used to fund loan growth and/or decrease FHLB borrowings<br>◼ NIM is expected to continue to decline modestly for the remainder of 2023 albeit at a higher rate than 2Q2023<br>◼ Noninterest income is expected to be marginally higher with seasonably higher mortgage income in 3Q2023<br>◼ Noninterest expense should stabilize between $30 million and $32 million<br>➢ The legal settlement accrual and related attorney expenses in 2Q2023 will be nonrecurring<br>➢ Annual merit increases were largely absorbed in 2Q2023<br>◼ Asset quality expected to remain solid although increasing unemployment and a declining economy, if any were to occur, could<br>cause increased provisions<br>◼ Stock repurchase program will continue to be used opportunistically with $9.3 million available under the current plan<br>◼ Current capital levels and stock valuation compared to peers support M&A but environment and valuation expectations<br>currently present a challenge<br>13
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Our History – Long track record of organic and acquisitive growth<br>Fred Drake named<br>President and<br>CEO of Heartland<br>Bank and Trust<br>Company and<br>leads its entry into<br>Bloomington-Normal<br>1992<br>1964 - 1982<br>George Drake<br>purchases El Paso<br>National Bank and<br>assembles group of<br>banks in rural<br>communities in<br>Central IL<br>M.B. Drake<br>starts bank in<br>Central IL<br>1920<br>HBT Financial, Inc.<br>incorporates as a multi-bank holding company<br>owning three banks<br>1982<br>1997<br>All five banks owned by<br>HBT Financial, Inc.<br>merge into Heartland<br>Bank and Trust<br>Company<br>Wave of<br>FDIC-assisted and<br>strategic<br>acquisitions,<br>including<br>expansion<br>into the<br>Chicago<br>MSA<br>2010-2015<br>Acquisition1<br>of Lincoln<br>S.B. Corp<br>(State Bank<br>of Lincoln)<br>2018<br>Company<br>crosses<br>$1bn in<br>assets<br>2007<br>1999 - 2008<br>Entry into several new<br>markets in Central IL<br>through de novo<br>branches and<br>acquisitions<br>1 Although the Lincoln S.B. Corp transaction is identified as an acquisition above, the transaction was accounted for as a change of reporting entity due to its common control with the Company<br>2019<br>Completion<br>of IPO in<br>October<br>14<br>2020<br>Merger of<br>State Bank<br>of Lincoln<br>into<br>Heartland<br>Bank and<br>Trust<br>Company<br>2021<br>Entry into<br>Iowa with<br>NXT Bank<br>acquisition<br>2023<br>Completed<br>acquisition<br>of Town and<br>Country<br>Financial<br>Corporation
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Central Illinois branches<br>Chicago MSA branches<br>Iowa branches<br>Our Markets<br>Full-service branch locations<br>Central<br>Illinois<br>69%<br>Chicago MSA<br>28%<br>Iowa<br>3%<br>Deposits<br>Central<br>Illinois<br>51%<br>Chicago MSA<br>40%<br>Iowa<br>9%<br>Central Illinois<br>45<br>Chicago MSA<br>18<br>Iowa<br>4<br>$3.2bn<br>$4.2bn<br>67<br>locations<br>15<br>Full-service Branches<br>Loans<br>Source: S&P Capital IQ; Financial data as of June 30, 2023
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Business Strategy<br>◼ Drake family involved in<br>Central IL banking since<br>1920<br>◼ Management lives and<br>works in our communities<br>◼ Community banking and<br>relationship-based<br>approach stems from<br>adherence to our<br>Midwestern values<br>◼ Committed to providing<br>products and services to<br>support the unique needs<br>of our customer base<br>◼ Vast majority of loans<br>originated to borrowers<br>domiciled within 60 miles of<br>a branch<br>◼ Robust underwriting<br>standards will continue to<br>be a hallmark of the<br>Company<br>◼ Maintained sound credit<br>quality and minimal<br>originated problem asset<br>levels during the Great<br>Recession<br>◼ Diversified loan portfolio<br>primarily within footprint<br>◼ Underwriting continues to<br>be a strength as evidenced<br>by NCOs / loans of (0.01)%<br>during 2021, (0.08)%<br>during 2022, and (0.01)%<br>during 1H23; NPLs / loans<br>of 0.11% at 4Q21, 0.08% at<br>4Q22, and 0.23% at 2Q23<br>◼ Positioned to be the acquirer of<br>choice for many potential<br>partners in and adjacent to our<br>existing markets<br>◼ Successful integration of 10<br>community bank acquisitions2<br>since 2007<br>◼ Chicago MSA, in particular,<br>has ~80 banking institutions<br>with less than $2bn in assets<br>◼ 1.43% ROAA3 and 3.23% NIM4<br><br>during 2021; 1.31% ROAA3<br>and 3.60% NIM4 during 2022;<br>1.60% ROAA3 and 4.24% NIM4<br>during 1H23<br>◼ Highly profitable through the<br>Great Recession<br>◼ Highly defensible market<br>position (Top 2 deposit share<br>rank in 6 of 8 largest Central<br>Illinois markets in which the<br>Company operates1<br>) that<br>contributes to our strong<br>core deposit base and<br>funding advantage<br>◼ Continue to deploy our<br>excess deposit funding (78%<br>loan-to-deposit ratio as of<br>2Q23) into attractive loan<br>opportunities in larger, more<br>diversified markets<br>◼ Efficient decision-making<br>process provides a<br>competitive advantage over<br>the larger and more<br>bureaucratic money center<br>and super regional financial<br>institutions that compete in<br>our markets<br>Preserve strong ties to<br>our communities<br>Deploy excess deposit<br>funding into loan<br>growth opportunities<br>Maintain a prudent<br>approach to credit<br>underwriting<br>Pursue strategic<br>acquisitions and sustain<br>strong profitability<br>1 Source: S&P Capital IQ, data as of June 30, 2022; 2<br>Includes merger with Lincoln S.B. Corp in 2018, although the transaction was accounted for as a change of reporting entity due to its common<br>control with Company; 3 Metrics based on adjusted net income, which is a non-GAAP metric; for reconciliation with GAAP metrics, see “Non-GAAP reconciliations” in Appendix; 4 Metrics presented on tax<br>equivalent basis; for reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix.<br>Small enough to know you, big enough to serve you<br>16
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Experienced executive management team with deep community ties<br>Fred L. Drake<br>Executive Chairman<br>40 years with Company<br>43 years in industry<br>J. Lance Carter<br>President and<br>Chief Executive Officer<br>21 years with Company<br>29 years in industry<br>Lawrence J. Horvath<br>Chief Lending Officer<br>13 years with Company<br>37 years in industry<br>Mark W. Scheirer<br>Chief Credit Officer<br>12 years with Company<br>31 years in industry<br>Andrea E. Zurkamer<br>Chief Risk Officer<br>10 years with Company<br>23 years in industry<br>Diane H. Lanier<br>Chief Retail Officer<br>26 years with Company<br>38 years in industry<br>17<br>Peter Chapman<br>Chief Financial Officer<br>Joined HBT in Oct. 2022<br>29 years in industry
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Talented Board of Directors with deep financial services industry experience<br>Fred L. Drake<br>Executive Chairman<br>• Director since 1984<br>• 40 years with Company<br>• 43 years in industry<br>J. Lance Carter<br>Director<br>• Director since 2011<br>• President and CEO of HBT Financial<br>and Heartland Bank<br>• 21 years with Company<br>• 29 years in industry<br>Patrick F. Busch<br>Director<br>• Director since 1998<br>• Vice Chairman of Heartland Bank<br>• 28 years with Company<br>• 45 years in industry<br>Eric E. Burwell<br>Director<br>• Director since 2005<br>• Owner, Burwell Management<br>Company<br>• Invests in a variety of real<br>estate, private equity, venture<br>capital and liquid investments<br>Linda J. Koch<br>Director<br>• Director since 2020<br>• Former President and<br>CEO of the Illinois<br>Bankers Association<br>• 36 years in industry<br>Gerald E. Pfeiffer<br>Director<br>• Director since 2019<br>• Former Partner at<br>CliftonLarsonAllen LLP<br>with 46 years of industry<br>experience<br>• Former CFO of Bridgeview<br>Bancorp<br>Allen C. Drake<br>Director<br>• Director since 1981<br>• Retired EVP with 27 years<br>of experience at Company<br>• Formerly responsible for<br>Company’s lending,<br>administration, technology,<br>personnel, accounting, trust<br>and strategic planning<br>Dr. C. Alvin Bowman<br>Director<br>• Director since 2019<br>• Former President of Illinois State<br>University<br>• 36 years in higher education<br>Roger A. Baker<br>Director<br>• Director since 2022<br>• Former Chairman and President<br>of NXT Bancorporation<br>• Owner, Sinclair Elevator, Inc.<br>• 15 years in industry<br>18
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Investment Highlights<br>3<br>1<br>2<br>4<br>Track record of successfully integrating<br>acquisitions<br>Consistent performance through cycles drives<br>long-term tangible book value growth<br>Strong, granular, low-cost deposit base provides<br>funding for loan growth opportunities<br>Prudent risk management<br>19
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Consistent performance through cycles. . .<br>Drivers of profitability Pre-tax return on average assets (%)<br>0.00%<br>0.25%<br>0.50%<br>0.75%<br>1.00%<br>1.25%<br>1.50%<br>1.75%<br>2.00%<br>2.25%<br>2.50%<br>2.75%<br>3.00%<br>2006 2007 2008 2009 2010 2011¹ 2012¹ 2013¹ 2014 2015 2016 2017 2018 2019 2020 2021 2022<br>Source: S&P Capital IQ as available on July 13, 2023; For 2006 through June 30, 2012, the Company’s pre-tax ROAA does not include Lincoln S.B. Corp. and its subsidiaries; 1 Non-GAAP financial<br>measure; HBT pre-tax ROAA adjusted to exclude the following significant non-recurring items in the following years: 2011: $25.4 million bargain purchase gains; 2012: $11.4 million bargain purchase<br>gains, $9.7 million net realized gain on securities, and $6.7 million net positive adjustments on FDIC indemnification asset and true-up liability; 2013: $9.1 million net realized loss on securities and $6.9<br>million net loss related to the sale of branches; 2 Represents 35 high performing major exchange-traded banks headquartered in the Midwest with $2-10bn in assets and a 2022 core return on average<br>assets above 1.0%<br>Strong, low-cost deposits<br>supported by our leading market<br>share in our Central Illinois<br>markets<br>1<br>Relationship-based business<br>model that has allowed us to<br>cultivate and underwrite<br>attractively priced loans<br>A robust credit risk management<br>framework to prudently manage<br>credit quality<br>Diversified sources of fee<br>income, including in wealth<br>management<br>4<br>Company Adjusted Company 1 High Performing Peer Median2<br>Consistent outperformance, even during periods of broad economic stress<br>1<br>2<br>3<br>20
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4.69 5.38 6.10 6.91<br>10.15<br>12.56 12.93 14.72 15.33 16.25 16.23 17.27 17.80<br>10.54 11.12 12.29 13.13 11.94 11.58<br>(7.26)<br>2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19 3Q19 2019 2020 2021 2022 2Q23<br>.. . . drives long-term tangible book value growth<br>Tangible book value per share over time ($ per share)1<br>1 For reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix; 2 In 2019, HBT Financial issued and sold 9,429,794 shares of common stock at a price of $16 per<br>share. Total proceeds received by the Company, net of offering costs, were $138.5 million and were used to substantially fund a $170 million special dividend to stockholders of record<br>prior to the initial public offering. Amount reflects dilution per share attributable to newly issued shares in initial public offering and special dividend payment. For reconciliation with GAAP<br>metric, see “Non-GAAP reconciliations”; 3 Excludes dividends paid to S Corp shareholders for estimated tax liability prior to conversion to C Corp status on October 11, 2019. Excludes<br>$170 million special dividend funded primarily from IPO proceeds. For reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix.<br>1<br>IPO<br>Dilution2<br>IPO<br>Adjusted2<br>Cumulative effect of dividends paid ($ per share)3<br>21<br>Town and Country acquisition<br>dilution in 1Q23 estimated to<br>be $0.68 when including<br>acquisition expenses<br>0.20 0.40 0.60 0.79<br>1.53 1.77 2.02 2.36<br>3.21<br>5.01<br>5.88<br>7.83<br>0.60<br>1.20<br>1.84 2.18<br>2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19 2019 2020 2021 2022 2Q23<br>Negative AOCI<br>reduces TBVPS by<br>$2.21 as of 2Q23
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0.17 0.21 0.29<br>0.14 0.07 0.07<br>0.24<br>0.34<br>0.60<br>0.86<br>0.48<br>0.20<br>0.36<br>1.14<br>2017 2018 2019 2020 2021 2022 1Q23<br>HBT High Performing Peers<br>Strong, granular, low-cost deposit base. . .<br>Cost of deposits (%) remains consistently below peers<br>Source: S&P Capital IQ as available on July 13, 2023; 1 Represents median of 35 high performing major exchange-traded banks headquartered in the Midwest with $2-10bn in assets and a 2022<br>core return on average assets above 1.0%<br>1<br>2<br>22<br>With a lower deposit beta than peers since beginning of current interest rate tightening cycle<br>0.00<br>1.50<br>3.00<br>4.50<br>6.00<br>0.00<br>0.50<br>1.00<br>1.50<br>2.00<br>4Q21 1Q22 2Q22 3Q22 4Q22 1Q23<br>HBT Cost of Deposits % (left axis) High Performing Peers Median Cost of Deposits % (left axis) Fed Funds Rate % (right axis)<br>Deposit beta (4Q21 – 1Q23): HBT = 3.8%, High Performing Peers 1 = 22.1%<br>1
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2 . . . provides funding for loan growth opportunities<br>23<br>Chicago MSA<br>◼ Entered market in 2011 with acquisition of Western Springs National<br>Bank<br>◼ In-market disruption from recent bank M&A in Chicago MSA has<br>provided attractive source of local talent<br>◼ Scale and diversity of Chicago MSA provides continued growth<br>opportunities, both in lending and deposits<br>◼ Loan growth in Chicago MSA spread across a variety of commercial<br>asset classes, including multifamily, mixed use, industrial, retail, and<br>office<br>Central Illinois<br>◼ Deep-rooted market presence expanded through several<br>acquisitions since 2007<br>◼ Central Illinois markets have been resilient during previous<br>economic downturns<br>◼ Town and Country merger should enhance loan growth through<br>access to new markets and opportunities to expand customer<br>relationships with HBT’s greater ability to meet larger borrowing<br>needs<br>Iowa<br>◼ Entered market in 2021 with acquisition of NXT Bancorporation, Inc.<br>◼ Continued opportunity to accelerate loan growth in Iowa thanks to<br>HBT’s larger lending limit and ability to add to talented banking team<br>◼ Top 2 deposit share rank in 6 of 8 largest Central Illinois markets<br>in which the Company operates1<br>◼ Deposit base is long tenured and granular across a variety of<br>product types dispersed across our geography<br>◼ Proactive campaign to reach out to top 250 largest deposit<br>customers has been run to solidify these relationships<br>◼ Detailed deposit pricing guidance is available to all consumer and<br>commercial staff to assist in pricing discussions with customers<br>Leading Deposit Market Position Loan Growth Opportunities<br>As of 6/30/23<br>Number of<br>Accounts<br>(000)<br>Average<br>Balance<br>($000)<br>Weighted<br>Average Age<br>(Years)<br>Noninterest-bearing<br>72 $16 14.9<br>Interest-bearing<br>demand<br>61 19 18.9<br>Money market 6 125 11.2<br>Savings 48 14 16.5<br>Time 14 33 6.1<br>Total deposits 201 21 14.7<br>Deposit Base Characteristics2<br>1 Source: S&P Capital IQ, data as of June 30, 2022; leading deposit share defined as top 3 deposit share rank; 2 Excludes overdrawn deposit accounts
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Track record of successfully integrating acquisitions<br>BankPlus<br>Morton, IL<br>$231mm deposits<br>2007 2012<br>Bank of Illinois<br>Normal, IL<br>FDIC-assisted<br>$176mm deposits<br>Western Springs<br>National Bank<br>Western Springs, IL<br>FDIC-assisted<br>$184mm deposits<br>2011<br>Citizens First National Bank<br>Princeton, IL<br>FDIC-assisted<br>$808mm deposits<br>2018<br>Farmer City State Bank<br>Farmer City, IL<br>$70mm deposits<br>2010 2015<br>Bank of Shorewood<br>Shorewood, IL<br>FDIC-assisted<br>$105mm deposits<br>National Bancorp, Inc.<br>(American Midwest Bank)<br>Schaumburg, IL<br>$447mm deposits<br>Lincoln S.B. Corp<br>(State Bank of Lincoln)1<br>Lincoln, IL<br>$357mm deposits<br>1 Although the Lincoln Acquisition is identified as an acquisition in the above table, the transaction was accounted for as a change of reporting entity due to its common control with<br>Company<br>24<br>2021<br>NXT Bancorporation, Inc.<br>(NXT Bank)<br>Central City, IA<br>$182mm deposits<br>Town and Country<br>Financial Corporation<br>(Town and Country Bank)<br>Springfield, IL<br>$720mm deposits<br>2023<br>3
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Prudent risk management<br>◼ Risk management culture instilled by management<br>◼ Well-diversified loan portfolio across commercial, regulatory<br>CRE, and residential<br>◼ Primarily originated across in-footprint borrowers<br>◼ Centralized credit underwriting group that evaluates all<br>exposures over $750,000 to ensure uniform application of<br>policies and procedures<br>◼ Conservative credit culture, strong underwriting criteria, and<br>regular loan portfolio monitoring<br>◼ Robust internal loan review process annually reviews more than<br>40% of loan commitments.<br>Strategy and Risk Management<br>◼ Majority of directors are independent, with varied experiences<br>and backgrounds<br>◼ Board of directors has an established Audit Committee,<br>Compensation Committee, Nominating and Corporate<br>Governance Committee and an Enterprise Risk Management<br>(ERM) Committee<br>◼ ERM program embodies the “three lines of defense” model and<br>promotes business line risk ownership.<br>◼ Independent and robust internal audit structure, reporting<br>directly to our Audit Committee<br>◼ Strong compliance culture and compliance management system<br>◼ Code of Ethics and other governance documents are available<br>at ir.hbtfinancial.com<br>Data Security & Privacy<br>◼ Robust data security program, and under our privacy policy, we<br>do not sell or share customer information with non-affiliated<br>entities.<br>◼ Formal company-wide business continuity plan covering all<br>departments, as well as a cybersecurity program that includes<br>internal and outsourced, independent testing of our systems and<br>employees<br>Comprehensive Enterprise Risk Management Disciplined Credit Risk Management<br>Historical net charge-offs (%)<br>4<br>0.07<br>0.04<br>(0.01)<br>(0.08)<br>(0.01)<br>2019 2020 2021 2022 1H23<br>NCOs / Loans %<br>25
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Appendix<br>26
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Non-GAAP Reconciliations<br>Adjusted net income and adjusted ROAA<br>($000) 2020 2021 2022 1H23<br>Net income $36,845 $56,271 $56,456 $27,681<br>Adjustments:<br>Acquisition expenses 1 -- (1,416) (1,092) (13,691)<br>Branch closure expenses -- (748) -- --<br>Charges related to termination of certain employee benefit plans (1,457) -- -- --<br>Gains (losses) on sale of closed branch premises -- -- 141 75<br>Realized losses on sale of securities -- -- -- (1,007)<br>Mortgage servicing rights fair value adjustment (2,584) 1,690 2,153 (483)<br>Total adjustments (4,041) (474) 1,202 (15,106)<br>Tax effect of adjustments 1,152 (95) (551) 4,156<br>Less: adjustments after tax effect (2,889) (569) 651 (10,950)<br>Adjusted net income $39,734 $56,840 $55,805 $38,631<br>Average assets $3,447,500 $3,980,538 $4,269,873 $4,871,245<br>Return on average assets 1.07% 1.41% 1.32% 1.15%<br>Adjusted return on average assets 1.15% 1.43% 1.31% 1.60%<br>27<br>* Annualized measure; 1<br>Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million<br>subsequent to the Town and Country merger during first quarter of 2023.
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Non-GAAP Reconciliations (cont’d)<br>ROATCE, adjusted return on average stockholders’ equity, and adjusted ROATCE<br>($000) 2020 2021 2022 1H23<br>Total stockholders’ equity $350,703 $380,080 $383,306 $438,448<br>Less: goodwill (23,620) (25,057) (29,322) (54,643)<br>Less: core deposit intangible assets (3,436) (2,333) (1,480) (19,097)<br> Average tangible common equity $323,647 $352,690 $352,504 $364,708<br>Net income $36,845 $56,271 $56,456 $27,681<br>Adjusted net income 39,734 56,840 55,805 38,631<br>Return on average stockholders’ equity 10.51% 14.81% 14.73% 12.73%<br>Return on average tangible common equity 11.38% 15.95% 16.02% 15.31%<br>Adjusted return on average stockholders’ equity 11.33% 14.95% 14.56% 17.77%<br>Adjusted return on average tangible common equity 12.28% 16.12% 15.83% 21.36%<br>* Annualized measure<br>28
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Non-GAAP Reconciliations (cont’d)<br>($000) 2019 2020 2021 2022 1H23<br>Net interest income $133,800 $117,605 $122,403 $145,874 $95,709<br>Tax equivalent adjustment 2,309 1,943 2,028 2,499 1,417<br>Net interest income (tax-equivalent basis) $136,109 $119,548 $124,431 $148,373 $97,126<br>Average interest-earnings assets $3,105,863 $3,318,764 $3,846,473 $4,118,124 $4,620,341<br>Net interest income (tax-equivalent basis)<br>Net interest margin (tax-equivalent basis)<br>* Annualized measure.<br>(%) 2019 2020 2021 2022 1H23<br>Net interest margin 4.31% 3.54% 3.18% 3.54% 4.18%<br>Tax equivalent adjustment 0.07% 0.06% 0.05% 0.06% 0.06%<br>Net interest margin (tax-equivalent basis) 4.38% 3.60% 3.23% 3.60% 4.24%<br>29<br>Net interest income (tax-equivalent basis)<br>Net interest margin (tax-equivalent basis)<br>($000) 2Q22 3Q22 4Q22 1Q23 2Q23<br>Net interest income $34,373 $37,390 $42,183 $46,837 $48,872<br>Tax equivalent adjustment 598 674 698 702 715<br>Net interest income (tax-equivalent basis) $34,971 $38,064 $42,881 $47,539 $49,587<br>Average interest-earnings assets $4,133,448 $4,059,978 $4,079,261 $4,523,721 $4,715,897<br>(%) 2Q22 3Q22 4Q22 1Q23 2Q23<br>Net interest margin 3.34%* 3.65%* 4.10%* 4.20%* 4.16%<br>Tax equivalent adjustment 0.05% 0.07%* 0.07%* 0.06%* 0.06%<br>Net interest margin (tax-equivalent basis) 3.39% 3.72%* 4.17%* 4.26%* 4.22%*
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Non-GAAP Reconciliations (cont’d)<br>Efficiency ratio (tax-equivalent basis)<br>($000) 2020 2021 2022 1H23<br>Total noninterest expense $91,956 $91,246 $105,107 $69,906<br>Less: amortization of intangible assets (1,232) (1,054) (873) (1,230)<br>Adjusted noninterest expense $90,724 $90,192 $104,234 $68,676<br>Net interest income $117,605 $122,403 $145,874 $95,709<br>Total noninterest income 34,456 37,328 34,717 17,351<br>Operating revenue 152,061 159,731 180,591 113,060<br>Tax-equivalent adjustment 1,943 2,028 2,499 1,417<br>Operating revenue (tax-equivalent basis) $154,004 $161,759 $183,090 $114,477<br>Efficiency ratio 59.66% 56.46% 57.72% 60.74%<br>Efficiency ratio (tax-equivalent basis) 58.91% 55.76% 56.93% 59.99%
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Non-GAAP Reconciliations (cont’d)<br>Tangible book value per share and cumulative effect of dividends (2007 to 3Q19)<br>($mm) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19<br>Tangible book value per share<br>Total equity $109 $120 $130 $143 $197 $262 $257 $287 $311 $326 $324 $340 $349<br>Less: goodwill (23) (23) (23) (23) (23) (23) (12) (12) (24) (24) (24) (24) (24)<br>Less: core deposit intangible (9) (9) (7) (7) (7) (15) (11) (9) (11) (9) (7) (5) (4)<br>Tangible common equity $77 $88 $99 $113 $167 $224 $233 $265 $276 $294 $293 $311 $321<br>Shares outstanding (mm) 16.47 16.28 16.30 16.33 16.45 17.84 18.03 18.03 18.02 18.07 18.07 18.03 18.03<br>Book value per share $6.65 $7.36 $7.95 $8.73 $12.00 $14.68 $14.23 $15.92 $17.26 $18.05 $17.92 $18.88 $19.36<br>Tangible book value per share $4.69 $5.38 $6.10 $6.91 $10.15 $12.56 $12.93 $14.72 $15.33 $16.25 $16.23 $17.27 $17.80<br>TBVPS CAGR (%) 12.0%<br>Cumulative effect of dividends per share<br>Cumulative regular dividends $-- $3 $7 $10 $13 $17 $22 $26 $33 $38 $46 $54 $62<br>Cumulative special dividends -- -- -- -- -- 10 10 10 10 20 45 52 79<br>Cumulative effect of dividends $-- $3 $7 $10 $13 $27 $32 $36 $43 $58 $91 $106 $141<br>Shares outstanding (mm) 16.47 16.28 16.30 16.33 16.45 17.84 18.03 18.03 18.02 18.07 18.07 18.03 18.03<br>Cumulative effect of dividends per<br>share $-- $0.20 $0.40 $0.60 $0.79 $1.53 $1.77 $2.02 $2.36 $3.21 $5.01 $5.88 $7.83<br>31
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Non-GAAP Reconciliations (cont’d)<br>IPO adjusted tangible book value per share<br>($mm)<br>IPO Adjusted<br>3Q19 2019 2020 2021 2022 2Q23<br>Tangible book value per share<br>Total equity $333 $364 $412 $374 $451<br>Less: goodwill (24) (24) (29) (29) (60)<br>Less: core deposit intangible (4) (3) (2) (1) (22)<br>Tangible common equity $305 $338 $381 $343 $369<br>Shares outstanding (mm) 27.46 27.46 28.99 28.75 31.9<br>Book value per share $12.12 $13.25 $14.21 $12.99 $14.15<br>Tangible book value per share $10.54 $11.12 $12.29 $13.13 $11.94 $11.58<br>TBVPS CAGR (%) 2.5%<br>Tangible book value per share (IPO adjusted 3Q19 to 2Q23)<br>($000) 3Q19<br>Tangible common equity<br>Total equity $348,936<br>Less: goodwill (23,620)<br>Less: core deposit intangible (4,366)<br>Tangible common equity 320,950<br>Net proceeds from initial public offering 138,493<br>Use of proceeds from initial public offering (special dividend) (169,999)<br>IPO adjusted tangible common equity $289,444<br>Shares outstanding 18,027,512<br>New shares issued during initial public offering 9,429,794<br>Shares outstanding, following the initial public offering 27,457,306<br>Tangible book value per share $17.80<br>Dilution per share attributable to new investors and special dividend payment (7.26)<br>IPO adjusted tangible book value per share $10.54<br>32
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Non-GAAP Reconciliations (cont’d)<br>($000) 2019 2020 2021 2022 2Q23<br>Tangible common equity<br>Total equity $332,918 $363,917 $411,881 $373,632 $450,852<br>Less: goodwill (23,620) (23,620) (29,322) (29,322) (59,876)<br>Less: core deposit intangible (4,030) (2,798) (1,943) (1,070) (22,122)<br>Tangible common equity $305,268 $337,499 $380,616 $343,240 $368,854<br>Tangible assets<br>Total assets $3,245,103 $3,666,567 $4,314,254 $4,286,734 $4,975,810<br>Less: goodwill (23,620) (23,620) (29,322) (29,322) (59,876)<br>Less: core deposit intangible (4,030) (2,798) (1,943) (1,070) (22,122)<br>Tangible assets $3,217,453 $3,640,149 $4,282,989 $4,256,342 $4,893,812<br>Total stockholders’ equity to total assets 10.26% 9.93% 9.55% 8.72% 9.06%<br>Tangible common equity to tangible assets 9.49% 9.27% 8.89% 8.06% 7.54%<br>Tangible common equity to tangible assets<br>33
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Non-GAAP Reconciliations (cont’d)<br>($000) 2020 2021 2022 2Q23<br>Total deposits $3,130,534 $3,738,185 $3,587,024 $4,164,523<br>Less: time deposits of $250,000 or more (26,687) (59,512) (27,158) (78,705)<br>Less: brokered deposits -- (4,238) -- (51,010)<br>Core deposits $3,103,847 $3,674,435 $3,559,866 $4,034,808<br>Core deposits to total deposits 99.15% 98.29% 99.24% 96.89%<br>Core deposits<br>34
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HBT Financial, Inc.
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