Hbt Financial, Inc. · NASDAQ:HBT
Hbt Financial — Q1 2025 Earnings Presentation
38 slides from Hbt Financial's earnings presentation, Apr 21, 2025
Slide 1: Q1 2025 Results Presentation
Q1 2025 Results Presentation April 21, 2025
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 the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights n Net income of $19.1 million, or $0.60 per diluted share; return on average assets (ROAA) of 1.54% and return on average Strong profitability tangible common equity (ROATCE)1 of 16.20% and tangible book n Adjusted net income1 of $19.3 million, or $0.61 per diluted share; adjusted
Slide 4: Company Snapshot and Key Financial Highlights
Company Snapshot Overview Financial Highlights ($mm) ü Company incorporated in 1982 from base of family-owned banks and completed its As of or for the period ended 2022 2023 2024 1Q25 IPO in October 2019 Total assets $4,287 $5,073 $5,033 $5,092 ü Headquartered in Bloomington, Illinois, with operatio
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 $1.3 million from the fourth quarter of ($000) 4Q24 Adj.1 4Q241 1Q25 Adj.1 1Q251 2024 with higher average loan balances, lower deposit costs, an
Slide 6: Deposit Overview
Deposit Overview Deposit Base Highlights Interest Spot Interest Costs* Rates2 n Highly granular deposit base with balances up during the first quarter of 2025 and the spot interest rate for total deposits at March 31, 2025 was 2 basis points lower than 1Q25 As of 3/31/25 total deposit interest costs
Slide 7: Net Interest Margin
Net Interest Margin n First quarter 2025 net interest margin and net interest margin (tax- Scheduled Fixed Rate Loan Maturities equivalent basis)1 increased 16 and 15 basis points from the prior quarter, respectively ($000) 2Q25 3Q25 4Q25 1H26 2H26 n 34% of the loan portfolio matures or reprices wit
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 $441 million C&I loans outstanding as of March 31, 2025 n $1.69 billion portfolio as of March 31, 2025 n For working capital, asset acquisition, and other business purposes n $
Slide 9: Loan Portfolio Overview: Selected Portfolios
Loan Portfolio Overview: Selected Portfolios Agriculture and Farmland Municipal, Consumer and Other n $292 million portfolio as of March 31, 2025 n $260 million portfolio as of March 31, 2025 n Borrower operations focus primarily on corn and soybean production n Loans to municipalities are primarily
Slide 10: Loan Portfolio Overview: ACL and Asset Quality
Loan Portfolio Overview: ACL and Asset Quality 1Q25 ACL on Loans Activity ($000) $42,044 $37 $717 $74 $42,111 $(429) $(332) 4Q24 Net Charge-Offs Changes in Changes in Changes in Changes in 1Q25 Specific Economic Qualitative Portfolio and Reserves Forecast Factors Other Changes CECL Methodology and O
Slide 11: Wealth Management Overview
Wealth Management Overview Comprehensive Wealth Management Services Agricultural Services n Proprietary investment management solutions n Farm management services: over 78,000 acres managed as of March 31, 2025 n Financial planning n Real estate brokerage including auction services n Trust and estat
Slide 12: Securities Portfolio Overview
Securities Portfolio Overview Securities Overview Key Investment Portfolio Metrics n Company’s debt securities consist primarily of the following types of fixed ($000) AFS HTM Total income instruments: Amortized Cost $ 754,493 $ 490,398 $1,244,891 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 1Q25 and remain well above regulatory 13.37 13.07 13.21 13.48% 12.12 requirements n Decrease in CET1 risk-based capital ratio in 2023 was primarily a result of th
Slide 14: Near-Term Outlook
Near-Term Outlook n Net interest income is expected to be up slightly in 2Q25, relative to 1Q25, due to a stable NIM and an increased day count despite lower projected average and end of period loan balances. n Deposit balances are expected to be flat in 2Q25, relative to 1Q25. n With current liquid
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 starts HBT Financial, Inc. Fred Drake named Entry into several new Wave of FDIC- Completion of Entry into bank in central IL incorporates as a multi-bank President and CEO of m
Slide 16: Our Markets
Our Markets Full-Service Branch Locations Deposits Iowa: 3% $4.4bn Chicago MSA: 28% Central Illinois: 69% Loans Iowa: 10% $3.5bn Central Illinois: 48% Chicago MSA: 42% Full-Service Branches Iowa: 4 66 Central Illinois: 44 Locations Central Illinois branches Chicago MSA: 18 Chicago MSA branches Iowa
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 growth approach to credit acquisitions and sustain our communities 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 42 years with Company Chief Executive Officer Joined HBT in 2022 45 years in industry 23 years with Company 31 years in industry 31 year
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 • 42 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 Adjusted1 Peer Median 2 3.00% 1 Strong, granular, low-cost deposits 2.75% 2.50% 2.25% Relationship-based business model 2.00% 2 that has allowed us to cultivate and 1.7
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 (%) 13.37 13.07 13.21 14.81 14.73 14.60 11.98 12.12 13.43 13.93 11.04 11.42 12.84 12.50 10.68 11.04 2021 2022 2023 2024 2021 2022 2023 2024 HBT Peer Media
Slide 23: Drives long-term shareholder value
1 . . . drives long-term shareholder value Cumulative Total Return (Initial investment of $100 and reinvestment of dividends) $200.00 $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 12/31/2024 3/31/2025 (IPO Date) HBT Financial, Inc. Peer Medi
Slide 24: Strong, granular, low-cost deposit base provides funding
2 Strong, granular, low-cost deposit base provides funding for . . . Cost of Deposits (%) Remains Consistently Below Peers Deposit Base Characteristics2 1 Average HBT Peer Median 1 Number of Account Weighted 2.06 Balance Accounts Average Age As of 3/31/25 (000) ($000) (Years) 1.49 1.30 Noninterest-b
Slide 25: Diversified loan portfolio and loan growth opportunities
2 . . . diversified loan portfolio and loan growth opportunities Loan Growth Opportunities Diversified Loan Portfolio Chicago MSA March 31, 2025 n Entered market in 2011 with acquisition of Western Springs National Bank Balance ($000) Percent n In-market disruption from recent bank M&A in Chicago MS
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 Financial Morton, IL Normal, IL Farmer City, IL (American Midwest Bank) Corporation $231mm deposits FDIC-assisted $176mm $70mm dep
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 27
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income and Adjusted ROAA ($000) 2022 2023 2024 4Q24 1Q25 Net income $ 56,456 $ 65,842 $ 71,780 $ 20,272 $ 19,075 Adjustments: Acquisition expenses1 (1,092) (13,691) — — — Gains (losses) on closed branch premises 141 75 (635) — 59 Realized losses on sale of secur
Slide 30: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) ROATCE, Adjusted ROAE, and Adjusted ROATCE ($000) 2022 2023 2024 1Q25 Total stockholders’ equity $ 383,306 $ 450,928 $ 515,368 $ 554,715 Less: goodwill (29,322) (57,266) (59,820) (59,820) Less: core deposit intangible assets (1,480) (20,272) (19,247) (17,480) Averag
Slide 31: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Net Interest Income (tax-equivalent basis) and Net Interest Margin (tax-equivalent basis) ($000) 2020 2021 2022 2023 2024 Net interest income $ 117,605 $ 122,403 $ 145,874 $ 191,072 $ 188,850 Tax-equivalent adjustment1 1,943 2,028 2,499 2,758 2,242 Net interest inco
Slide 32: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Efficiency Ratio (tax-equivalent basis) ($000) 2022 2023 2024 1Q25 Total noninterest expense $ 105,107 $ 130,964 $ 124,007 $ 31,935 Less: amortization of intangible assets (873) (2,670) (2,839) (695) Noninterest expense excluding amortization of intangible assets $
Slide 33: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Tangible Common Equity to Tangible Assets ($000) 2021 2022 2023 2024 1Q25 Tangible common equity Total equity $ 411,881 $ 373,632 $ 489,496 $ 544,605 $ 565,057 Less: goodwill (29,322) (29,322) (59,820) (59,820) (59,820) Less: core deposit intangible (1,943) (1,070)
Slide 34: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Tangible Book Value Per Share ($000) 2021 2022 2023 2024 1Q25 Tangible common equity Total equity $ 411,881 $ 373,632 $ 489,496 $ 544,605 $ 565,057 Less: goodwill (29,322) (29,322) (59,820) (59,820) (59,820) Less: core deposit intangible (1,943) (1,070) (20,682) (17
Slide 35: Non-GAAP Reconciliations (cont'd)
Non-GAAP Reconciliations (cont’d) Core Deposits ($000) 2022 2023 2024 1Q25 Total deposits $ 3,587,024 $ 4,401,437 $ 4,318,254 $ 4,384,590 Less: time deposits of $250,000 or more (27,158) (130,183) (202,196) (209,223) Less: brokered deposits — (144,880) — — Core deposits $ 3,559,866 $ 4,126,374 $ 4,1
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Pre-Tax ROAA (2011 to 2013) ($000) 2011 2012 2013 Income before income tax expense $ 47,301 $ 71,384 $ 46,134 Adjustments: Bargain purchase gain 25,417 11,361 — Realized gains (losses) on sale of securities — 9,683 (9,143) Net positive adjustments on FDIC indemnific
Slide 37: 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 38: Besa
Besa