Hbt Financial, Inc. · NASDAQ:HBT
Hbt Financial — Q3 2024 Earnings Presentation
36 slides from Hbt Financial's earnings presentation, Oct 21, 2024
Slide 1: HBT Financial, Inc. Q3 2024 Results Presentation
HBT Financial, Inc. October 21, 2024 Q3 2024 Results Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 Financial" or "HBT") and its management may contain, "forward-looking state
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights n Net income of $18.2 million, or $0.57 per diluted share; return on average assets (ROAA) of 1.44% and return on average tangible common equity (ROATCE)1 of 16.25% Strong profitability n Adjusted net income1 of $19.2 million, or $0.61 per diluted share; adjusted ROAA1 of 1.53% an
Slide 4: Company Snapshot
Company Snapshot Overview Financial Highlights ($mm) 3Q24 As of or for the period ended 2021 2022 2023 YTD ü Company incorporated in 1982 from base of family-owned banks and completed its IPO in October 2019 Total assets $4,314 $4,287 $5,073 $4,991 ü Headquartered in Bloomington, Illinois, with oper
Slide 5: Earnings Overview
Earnings Overview Prior Quarter Current Quarter Highlights Relative to Previous Quarter Non-GAAP Adjusted Non-GAAP Adjusted n Net interest income increased from the second quarter ($000) 2Q24 Adj.1 2Q241 3Q24 Adj.1 3Q241 of 2024 with improved loan yields mostly offset by an Interest and dividend inc
Slide 6: Deposit Overview
Deposit Overview Deposit Base Highlights Interest Spot Interest Costs* Rates2 n Highly granular deposit base with balances largely stable during the third quarter of 2024 while the spot interest rate for total deposits at 3Q24 As of 9/30/24 September 30, 2024 was 3 basis points lower than total depo
Slide 7: Net Interest Margin
Net Interest Margin n Third quarter 2024 net interest margin and net interest margin (tax-equivalent basis)1 increased 3 basis point from the prior Percentage of Loans Maturing or Repricing quarter n 40% of the loan portfolio matures or reprices within the next 30.5% 23.2% 23.8% 12 months 13.0% 9.5%
Slide 8: Loan Portfolio Overview: Commercial and Commercial Real Estate
Loan Portfolio Overview: Commercial and Commercial Real Estate Commercial Loan Portfolio Commercial Real Estate Portfolio n $396 million C&I loans outstanding as of September 30, 2024 n $1.68 billion portfolio as of September 30, 2024 Ø For working capital, asset acquisition, and other business Ø $8
Slide 9: Loan Portfolio Overview: Selected Portfolios
Loan Portfolio Overview: Selected Portfolios Agriculture and Farmland Municipal, Consumer and Other n $297 million portfolio as of September 30, 2024 n $235 million portfolio as of September 30, 2024 n Borrower operations focus primarily on corn and soybean Ø Loans to municipalities are primarily fe
Slide 10: Loan Portfolio Overview: ACL and Asset Quality
Loan Portfolio Overview: ACL and Asset Quality 3Q24 ACL on Loans Activity ($000) $40,806 $1,038 $314 $40,966 $(586) $(389) $(217) 2Q24 Net Charge-Offs Changes in Changes in Changes in Changes in 3Q24 Specific Economic Qualitative Portfolio and Reserves Forecast Factors Other Changes CECL Methodology
Slide 11: Wealth Management Overview
Wealth Management Overview Comprehensive Wealth Management Services Agricultural Services n Proprietary investment management solutions n Farm management services: over 77,000 acres managed as of September 30, 2024 n Financial planning n Real estate brokerage including auction services n Trust and e
Slide 12: Securities Portfolio Overview
Securities Portfolio Overview Securities Overview Key Investment Portfolio Metrics n Company’s debt securities consist primarily of the following ($000) AFS HTM Total types of fixed income instruments: Amortized Cost $ 758,481 $ 505,075 $1,263,556 n Agency guaranteed MBS: MBS pass-throughs, CMOs, an
Slide 13: Capital and Liquidity Overview
Capital and Liquidity Overview CET1 Risk-Based Capital Ratio (%) Capital and Liquidity Highlights n All capital measures increased during 3Q24 and remain well 13.06 13.37 13.07 13.15 12.12 above regulatory requirements n Decrease in CET1 risk-based capital ratio in 2023 was primarily a result of the
Slide 14: Near-Term Outlook
Near-Term Outlook n Loan pipelines remain similar to 3Q24; however, we expect fewer payoffs in 4Q24 resulting in estimated annualized growth in the low- to mid-single digits for 4Q24 n Deposit balances are expected to be stable in 4Q24, excluding $30 million of brokered deposits outstanding at Septe
Slide 15: Our History – Long track record of organic and acquisitive growth
Our History – Long track record of organic and acquisitive growth 1920 1982 1992 1999 - 2008 2010-2015 2019 2021 M.B. Drake HBT Financial, Inc. Fred Drake named Entry into several new Wave of Completion Entry into starts bank in incorporates as a multi- President and markets in central IL FDIC- of I
Slide 16: Our Markets
Our Markets Full-Service Branch Locations Deposits Iowa: 3% Chicago MSA: 28% $4.3bn Central Illinois: 69% Loans Iowa: 10% Central $3.4bn Illinois: 49% Chicago MSA: 41% Full-Service Branches Central Illinois branches Chicago MSA branches Iowa branches Iowa: 4 Chicago MSA: 18 66 Locations Source: S&P
Slide 17: Business Strategy
Business Strategy Small enough to know you, big enough to serve you Deploy excess deposit Maintain a prudent Pursue strategic Preserve strong ties to funding into loan approach to credit acquisitions and sustain our communities growth opportunities underwriting strong profitability n Drake family in
Slide 18: Experienced executive management team with deep community ties
Experienced executive management team with deep community ties Fred L. Drake J. Lance Carter Peter Chapman Executive Chairman President and Chief Financial Officer 41 years with Company Chief Executive Officer Joined HBT in Oct. 2022 44 years in industry 22 years with Company 30 years in industry 30
Slide 19: Talented Board of Directors with deep financial services industry experience
Talented Board of Directors with deep financial services industry experience Fred L. Drake J. Lance Carter Patrick F. Busch Roger A. Baker Executive Chairman Director Director Director • Director since 1984 • Director since 2011 • Director since 1998 • Director since 2022 • 41 years with Company • P
Slide 20: Investment Highlights
Investment Highlights Consistent performance through economic cycles and 1 consistent out-performance of peers drives long-term shareholder value Strong, granular, low-cost deposit base provides funding for 2 diversified loan portfolio and loan growth opportunities 3 Track record of successfully int
Slide 21: Consistent performance through economic cycles
1 Consistent performance through economic cycles. . . Drivers of Profitability Pre-Tax Return on Average Assets (%) Company Company Adjusted 1 Peer Median 2 3.00% Strong, granular, low-cost 1 2.75% deposits 2.50% 2.25% Relationship-based business 2.00% model that has allowed us to 1.75% 2 cultivate
Slide 22: Consistent out-performance of peers
1 . . . and consistent out-performance of peers. . . Robust Capitalization Superior Profitability CET1 Capital Ratio (%) Return on Average Equity (%) 14.81 14.73 14.60 13.06 13.37 13.07 13.41 13.46 12.03 11.94 12.12 12.66 12.65 12.50 10.58 11.04 11.09 10.51 10.29 10.77 2020 2021 2022 2023 1H24 2020
Slide 23: Drives long-term shareholder value
1 . . . drives long-term shareholder value Cumulative Total Return (Initial investment of $100 and reinvestment of dividends) $175.00 $150.00 $125.00 $100.00 $75.00 10/11/2019 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 9/30/2024 (IPO Date) 1 HBT Financial, Inc. Peer Median S&P 600 Small
Slide 24: Strong, granular, low-cost deposit base
2 Strong, granular, low-cost deposit base provides funding for . . . Cost of Deposits (%) Remains Consistently Below Peers Deposit Base Characteristics2 Average HBT Peer Median1 1 Number of Account Weighted 2.06 Balance Accounts Average Age As of 9/30/24 (000) ($000) (Years) 1.51 Noninterest-bearing
Slide 25: Diversified loan portfolio and loan growth opportunities
2 . . . diversified loan portfolio and loan growth opportunities Diversified Loan Portfolio Loan Growth Opportunities September 30, 2024 Chicago MSA Balance n Entered market in 2011 with acquisition of Western Springs National Bank ($000) Percent n In-market disruption from recent bank M&A in Chicag
Slide 26: Track record of successfully integrating acquisitions
3 Track record of successfully integrating acquisitions 2007 2010 2012 2015 2023 BankPlus Bank of Illinois Farmer City State Bank National Bancorp, Inc. Town and Country Morton, IL Normal, IL Farmer City, IL (American Midwest Bank) Financial Corporation $231mm deposits FDIC-assisted $70mm deposits S
Slide 27: Prudent risk management
4 Prudent risk management Comprehensive Enterprise Risk Management Disciplined Credit Risk Management Strategy and Risk Management n Risk management culture instilled by management n Majority of directors are independent, with varied expertise and n Well-diversified loan portfolio across commercial,
Slide 28: Appendix
Appendix HBT Financial 27
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income and Adjusted ROAA ($000) 2021 2022 2023 3Q24 YTD 2Q24 3Q24 Net income $ 56,271 $ 56,456 $ 65,842 $ 51,508 $ 18,070 $ 18,180 Adjustments: Acquisition expenses1 (1,416) (1,092) (13,691) — — — Branch closure expenses (748) — — — — — Gains (losses) on closed
Slide 30: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) ROATCE, Adjusted ROAE, and Adjusted ROATCE ($000) 2021 2022 2023 3Q24 YTD Total stockholders’ equity $ 380,080 $ 383,306 $ 450,928 $ 506,582 Less: goodwill (25,057) (29,322) (57,266) (59,820) Less: core deposit intangible assets (2,333) (1,480) (20,272) (19,607) Ave
Slide 31: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Net Interest Income (tax-equivalent basis) ($000) 2020 2021 2022 2023 3Q24 YTD Net interest income $ 117,605 $ 122,403 $ 145,874 $ 191,072 $ 141,449 Tax-equivalent adjustment 1,943 2,028 2,499 2,758 1,680 Net interest income (tax-equivalent basis) $ 119,548 $ 124,43
Slide 32: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Efficiency Ratio (tax-equivalent basis) ($000) 2021 2022 2023 3Q24 YTD Total noninterest expense $ 91,246 $ 105,107 $ 130,964 $ 93,099 Less: amortization of intangible assets (1,054) (873) (2,670) (2,130) Noninterest expense excluding amortization of intangible asse
Slide 33: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Tangible Common Equity to Tangible Assets ($000) 2020 2021 2022 2023 3Q24 Tangible common equity Total equity $ 363,917 $ 411,881 $ 373,632 $ 489,496 $ 537,662 Less: goodwill (23,620) (29,322) (29,322) (59,820) (59,820) Less: core deposit intangible (2,798) (1,943)
Slide 34: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Core Deposits ($000) 2021 2022 2023 3Q24 Total deposits $ 3,738,185 $ 3,587,024 $ 4,401,437 $ 4,280,700 Less: time deposits of $250,000 or more (59,512) (27,158) (130,183) (214,102) Less: brokered deposits (4,238) — (144,880) (29,999) Core deposits $ 3,674,435 $ 3,5
Slide 35: Peer Group Members
Peer Group Members Ticker Symbol Company Name BFC Bank First Corporation BY Byline Bancorp, Inc. CIVB Civista Bancshares, Inc. FMNB Farmers National Banc Corp. THFF First Financial Corporation FMBH First Mid Bancshares, Inc. GABC German American Bancorp, Inc. GSBC Great Southern Bancorp, Inc. HBNC H
Slide 36: HBT Financial, Inc.
HBT Financial, Inc.