Second Quarter Highlights Net income of $18.1 million, or $0.57 per diluted share; return on average assets ("ROAA") of 1.45%; return on average stockholders' equity ("ROAE") of 14.48%; and return on average tangible common equity ("ROATCE")(1) of 17.21% Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.54%; and adjusted ROATCE(1) of 17.27% Asset quality remained strong with nonperforming assets to total assets of 0.17%, close to a historic low Net interest margin and net interest margin (tax-equivalent basis)(1) increased slightly to 3.95% and 4.00%, respectively BLOOMINGTON, Ill., July 22, 2024 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ:HBT) (the "Company" or "HBT Financial" or "HBT"), the holding company for Heartland Bank and Trust Company, today reported net income of $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024. This compares to net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024, and net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023. J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, "On behalf of HBT Financial, I would like to first express my condolences to the George Drake family. George passed away on May 13th at the age of 97. He started his banking career just after World War II at the State Bank of Cornland, which had been founded by his father M.B. Drake, and he spent over 70 years in banking before retiring from our Board of Directors in 2019. He formed Heartland Bancorp, Inc. (now HBT Financial) in 1982 as one of the first multi-bank holding companies in Illinois. I had the pleasure of knowing George for 22 years and his kindness and wisdom impacted me. His leadership and vision established the foundation for our success today. As for the second quarter, we delivered another set of very strong performance metrics with net income of $18.1 million, a ROAA of 1.45% and ROATCE(1) of 17.21%. In addition, our tangible book value per share of $13.64 has grown 17.8% over the past year. During the quarter, we saw solid loan growth of $39.5 million, or 4.7% on an annualized basis, as well as stability in our core deposit base. We have seen the continued repricing of our loan portfolio and tight management of deposit costs positively impact our net interest margin (tax-equivalent basis)(1) which expanded 1 basis point to 4.00% for the quarter. While we continue to invest in our business, our costs were well controlled during the quarter as demonstrated by our efficiency ratio (tax-equivalent basis)(1) of 52.1%. Our loan portfolio is performing well with no apparent signs of concentrated stress in sub portfolios, such as office and retail commercial real estate, while nonperforming assets represented only 0.17% of total assets and net charge-offs were only 0.08% of average loans on an annualized basis for the quarter."____________________________________(1)   See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. Adjusted Net Income In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024, and adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023 (see "Reconciliation of Non-GAAP Financial Measures" tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures). Net Interest Income and Net Interest Margin Net interest income for the second quarter of 2024 was $47.0 million, a slight increase of 0.7% from $46.7 million for the first quarter of 2024. The slight increase was primarily attributable to improved asset yields and growth in interest-earning assets which were mostly offset by an increase in funding costs. Relative to the second quarter of 2023, net interest income decreased 3.8% from $48.9 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets. Net interest margin for the second quarter of 2024 was 3.95%, compared to 3.94% for the first quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the second quarter of 2024 was 4.00%, compared to 3.99% for the first quarter of 2024. Higher yields on interest-earning assets, which increased by 5 basis points to 5.28%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.42%. Relative to the second quarter of 2023, net interest margin decreased 21 basis points from 4.16% and net interest margin (tax-equivalent basis)(1) decreased 22 basis points from 4.22%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.____________________________________(1)   See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. Noninterest Income Noninterest income for the second quarter of 2024 was $9.6 million, an increase from $5.6 million for the first quarter of 2024. The increase was primarily attributable to the absence of $3.4 million of losses on sales of securities and $0.6 million of impairment losses related to the closure of two branches recognized during the first quarter of 2024. Additionally, seasonal changes in card income, which increased by $0.3 million, were mostly offset by a $0.2 million decrease in other noninterest income. Relative to the second quarter of 2023, noninterest income decreased 3.1% from $9.9 million. The decrease was primarily attributable to a $0.2 million change in the mortgage servicing rights fair value adjustment and a $0.2 million decrease in other noninterest income. Partially offsetting these decreases was a $0.3 million increase in wealth management fees, driven by higher values of assets under management during the second quarter of 2024 relative to the second quarter of 2023. Noninterest Expense Noninterest expense for the second quarter of 2024 was $30.5 million, a 2.4% decrease from $31.3 million for the first quarter of 2024. The decrease was primarily attributable to a $0.3 million decrease in salaries expense, which included higher vacation accruals and payroll taxes in the first quarter of 2024, a $0.3 million decrease in occupancy expense, and a $0.3 million decrease in data processing expense. Relative to the second quarter of 2023, noninterest expense decreased 10.2% from $34.0 million. The decrease was primarily attributable to the absence of $0.8 million of legal fees and $0.8 million of accruals related to legal matters previously disclosed as well as the absence of $0.6 million of Town and Country Financial Corporation ("Town and Country") acquisition-related expenses incurred during the second quarter of 2023. Additionally, the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023 further contributed to the decrease in noninterest expense. Acquisition-related expenses recognized during the three and six months ended June 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.         (dollars in thousands) Three Months EndedJune 30, 2023   Six Months EndedJune 30, 2023         PROVISION FOR CREDIT LOSSES $ —   $ 5,924 NONINTEREST EXPENSE       Salaries   66     3,584 Furniture and equipment   39     39 Data processing   176     2,031 Marketing and customer relations   10     24 Loan collection and servicing   125     125 Legal fees and other noninterest expense   211     1,964 Total noninterest expense   627     7,767 Total acquisition-related expenses $ 627   $ 13,691 Income Taxes During the second quarter of 2024, we recognized an additional $0.5 million of tax expense for a deferred tax asset write-down, primarily as a result of an Illinois tax change. This increased our effective tax rate to 27.6% during the second quarter of 2024 from 25.6% during the first quarter of 2024. We expect this write-down to be earned back over several years through reduced state tax expense. Loan Portfolio Total loans outstanding, before allowance for credit losses, were $3.39 billion at June 30, 2024, compared with $3.35 billion at March 31, 2024, and $3.24 billion at June 30, 2023. The $39.5 million increase from March 31, 2024 was primarily attributable to draws on existing construction projects and new construction loans to existing customers. In addition, growth in our municipal, consumer and other portfolio was primarily due to draws on an existing loan to a recurring borrower. The $8.4 million increase in multi-family loans was driven predominately by the completion of projects previously in the construction and land development category. Deposits Total deposits were $4.32 billion at June 30, 2024, compared with $4.36 billion at March 31, 2024, and $4.16 billion at June 30, 2023. The $41.9 million decrease from March 31, 2024 was primarily attributable to a $25.8 million decrease in brokered deposits and a $16.1 million decrease in higher cost reciprocal wealth management customer deposits included with money market deposits. Partially offsetting these decreases was a $31.1 million increase in time deposits from a State of Illinois loan matching program, a lower cost source of funding, which totaled $65.0 million as of June 30, 2024. Asset Quality Nonperforming loans totaled $8.4 million, or 0.25% of total loans, at June 30, 2024, compared with $9.7 million, or 0.29% of total loans, at March 31, 2024, and $7.5 million, or 0.23% of total loans, at June 30, 2023. Additionally, of the $8.4 million of nonperforming loans held as of June 30, 2024, $2.1 million is either wholly or partially guaranteed by the U.S. government. The $1.2 million decrease in nonperforming loans from March 31, 2024 was primarily attributable to a $0.4 million reduction in nonaccrual one-to-four family residential loans as well as charge-offs. The Company recorded a provision for credit losses of $1.2 million for the second quarter of 2024. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic forecasts and a $0.9 million increase in required reserves driven by increased loan balances and changes within the loan portfolio which were mostly offset by a $0.7 million decrease in specific reserves. The Company had net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, compared to net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. During the second quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category, which had $0.5 million of net charge-offs, and the multi-family category, which had $0.2 million of net charge-offs. The Company's allowance for credit losses was 1.21% of total loans and 484% of nonperforming loans at June 30, 2024, compared with 1.22% of total loans and 423% of nonperforming loans at March 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.3 million as of June 30, 2024, compared with $3.8 million as of March 31, 2024. Capital As of June 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:     June 30, 2024   For CapitalAdequacy PurposesWith CapitalConversation Buffer           Total capital to risk-weighted assets   16.01 %   10.50 % Tier 1 capital to risk-weighted assets   13.98     8.50   Common equity tier 1 capital ratio   12.66     7.00   Tier 1 leverage ratio   10.83     4.00                 The ratio of tangible common equity to tangible assets(1) increased to 8.74% as of June 30, 2024, from 8.40% as of March 31, 2024, and tangible book value per share(1) increased by $0.45 to $13.64 as of June 30, 2024, when compared to March 31, 2024. During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of $18.74 under its stock repurchase program. The Company's Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of June 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.____________________________________(1)   See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. About HBT Financial, Inc. HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of June 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 billion. Non-GAAP Financial Measures Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables. Forward-Looking Statements Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or "should," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company's general business and any changes in response to the recent failures of other banks or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company's assets (including the effects of sustained, elevated interest rates); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and "fintech" companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission. CONTACT:Peter 664-4556 HBT Financial, Inc.Unaudited Consolidated Financial Summary               As of or for the Three Months Ended   Six Months Ended June 30, (dollars in thousands, except per share data)   June 30,2024   March 31,2024   June 30,2023    2024     2023  Interest and dividend income   $ 62,824     $ 61,961     $ 56,768     $ 124,785     $ 108,547   Interest expense     15,796       15,273       7,896       31,069       12,838   Net interest income     47,028       46,688       48,872       93,716       95,709   Provision for credit losses     1,176       527       (230 )     1,703       5,980   Net interest income after provision for credit losses     45,852       46,161       49,102       92,013       89,729   Noninterest income     9,610       5,626       9,914       15,236       17,351   Noninterest expense     30,509       31,268       33,973       61,777       69,906   Income before income tax expense     24,953       20,519       25,043       45,472       37,174   Income tax expense     6,883       5,261       6,570       12,144       9,493   Net income   $ 18,070     $ 15,258     $ 18,473     $ 33,328     $ 27,681                         Earnings per share - Diluted   $ 0.57     $ 0.48     $ 0.58     $ 1.05     $ 0.88                         Adjusted net income (1)   $ 18,139     $ 18,073     $ 18,772     $ 36,212     $ 38,631   Adjusted earnings per share - Diluted (1)     0.57       0.57       0.58       1.14       1.22                         Book value per share   $ 16.14     $ 15.71     $ 14.15           Tangible book value per share (1)     13.64       13.19       11.58                                 Shares of common stock outstanding     31,559,366       31,612,888       31,865,868           Weighted average shares of common stock outstanding     31,579,457       31,662,954       31,980,133       31,621,205       31,481,439                         SUMMARY RATIOS                     Net interest margin *     3.95 %     3.94 %     4.16 %     3.95 %     4.18 % Net interest margin (tax-equivalent basis) * (1)(2)     4.00       3.99       4.22       3.99       4.24                         Efficiency ratio     52.61 %     58.41 %     56.57 %     55.40 %     60.74 % Efficiency ratio (tax-equivalent basis) (1)(2)     52.10       57.78       55.89       54.83       59.99                         Loan to deposit ratio     78.39 %     76.73 %     77.91 %                               Return on average assets *     1.45 %     1.23 %     1.49 %     1.34 %     1.15 % Return on average stockholders' equity *     14.48       12.42       16.30       13.46       12.73   Return on average tangible common equity * (1)     17.21       14.83       19.91       16.03       15.31                         Adjusted return on average assets * (1)     1.45 %     1.45 %     1.51 %     1.45 %     1.60 % Adjusted return on average stockholders' equity * (1)     14.54       14.72       16.57       14.63       17.77   Adjusted return on average tangible common equity * (1)     17.27       17.57       20.23       17.42       21.36                         CAPITAL                     Total capital to risk-weighted assets     16.01 %     15.79 %     15.03 %         Tier 1 capital to risk-weighted assets     13.98       13.77       13.12           Common equity tier 1 capital ratio     12.66       12.44       11.78           Tier 1 leverage ratio     10.83       10.65       10.07           Total stockholders' equity to total assets     10.18       9.85       9.06           Tangible common equity to tangible assets (1)     8.74       8.40       7.54                                 ASSET QUALITY                     Net charge-offs (recoveries) to average loans     0.08 %   (0.02)        %   (0.01)        %     0.03 %   (0.01)        % Allowance for credit losses to loans, before allowance for credit losses     1.21       1.22       1.17           Nonperforming loans to loans, before allowance for credit losses     0.25       0.29       0.23           Nonperforming assets to total assets     0.17       0.20       0.21           ____________________________________ Annualized measure. (1)   See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.(2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.   HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Statements of Income           Three Months Ended   Six Months Ended June 30, (dollars in thousands, except per share data) June 30,2024   March 31,2024   June 30,2023    2024     2023  INTEREST AND DIVIDEND INCOME                   Loans, including fees:                   Taxable $ 52,177     $ 51,926     $ 47,149     $ 104,103     $ 89,308   Federally tax exempt   1,097       1,094       1,040       2,191       1,992   Securities:                   Taxable   6,386       6,250       6,518       12,636       13,134   Federally tax exempt   521       597       1,162       1,118       2,359   Interest-bearing deposits in bank   2,570       1,952       781       4,522       1,520   Other interest and dividend income   73       142       118       215       234   Total interest and dividend income   62,824       61,961       56,768       124,785       108,547   INTEREST EXPENSE                   Deposits   14,133       13,593       4,323       27,726       6,697   Securities sold under agreements to repurchase   129       152       34       281       72   Borrowings   121       125       2,189       246       3,486   Subordinated notes   469       470       469       939       939   Junior subordinated debentures issued to capital trusts   944       933       881       1,877       1,644   Total interest expense   15,796       15,273       7,896       31,069       12,838   Net interest income   47,028       46,688       48,872       93,716       95,709   PROVISION FOR CREDIT LOSSES   1,176       527       (230 )     1,703       5,980   Net interest income after provision for credit losses   45,852       46,161       49,102       92,013       89,729   NONINTEREST INCOME                   Card income   2,885       2,616       2,905       5,501       5,563   Wealth management fees   2,623       2,547       2,279       5,170       4,617   Service charges on deposit accounts   1,902       1,869       1,919       3,771       3,790   Mortgage servicing   1,111       1,055       1,254       2,166       2,353   Mortgage servicing rights fair value adjustment   (97 )     80       141       (17 )     (483 ) Gains on sale of mortgage loans   443       298       373       741       649   Realized gains (losses) on sales of securities   —       (3,382 )     —       (3,382 )     (1,007 ) Unrealized gains (losses) on equity securities   (96 )     (16 )     7       (112 )     (15 ) Gains (losses) on foreclosed assets   (28 )     87       (97 )     59       (107 ) Gains (losses) on other assets   —       (635 )     109       (635 )     109   Income on bank owned life insurance   166       164       147       330       262   Other noninterest income   701       943       877       1,644       1,620   Total noninterest income   9,610       5,626       9,914       15,236       17,351   NONINTEREST EXPENSE                   Salaries   16,364       16,657       16,660       33,021       36,071   Employee benefits   2,860       2,805       2,707       5,665       5,042   Occupancy of bank premises   2,243       2,582       2,785       4,825       4,887   Furniture and equipment   548       550       809       1,098       1,468   Data processing   2,606       2,925       2,883       5,531       7,206   Marketing and customer relations   996       996       1,359       1,992       2,195   Amortization of intangible assets   710       710       720       1,420       1,230   FDIC insurance   565       560       630       1,125       1,193   Loan collection and servicing   475       452       348       927       626   Foreclosed assets   10       49       97