Hbt Financial, Inc. · NASDAQ:HBT
Hbt Financial — Q1 2022 Earnings Presentation
33 slides from Hbt Financial's earnings presentation, Apr 25, 2022
Slide 1: Q1 2022 Results Presentation
STRICTLY PRIVATE AND CONFIDENTIAL Q1 2022 Results Presentation April 25, 2022 HBT Financial, Inc.
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 o ral and written statements of the Company and its management may contain, "forward - looking statements" within the meanings of the Private Secur
Slide 3: Q1 2022 Summary
Q1 2022 Summary Seasonally lighter loan growth in 1Q ◼ Total loans were relatively flat, excluding PPP loans ◼ Growth in construction and C&I loans offset by payoffs/paydowns in multifamily and agriculture/farmland loans ◼ New loan production impacted by seasonally lighter demand in first quarter, p
Slide 4: Company snapshot
C&I 12% CRE – Owner occupied 9% Agricultural & farm land 9% CRE – Non - owner occupied 28% C&D 10% Multi - family 13% 1 - 4 Family residential 13% Municipal, consumer & other 6% Company snapshot ✓ Company incorporated in 1982 from base of family - owned banks and completed its IPO in October 2019 ✓
Slide 5: Loan Portfolio Overview: Commercial and Commercial Real Estate
Loan Portfolio Overview: Commercial and Commercial Real Estate ◼ $1.25 billion portfolio as of March 31, 2022 ➢ $688 million in non - owner occupied CRE primarily supported by rental cash flow of the underlying properties ➢ $243 million in multi - family loans secured by 5+ unit apartment buildings
Slide 6: Loan Portfolio Overview: Selected Portfolios
Loan Portfolio Overview: Selected Portfolios Agriculture and Farmland ◼ $233 million portfolio as of March 31, 2022 ◼ Significant increase in corn and soybean prices since 2020 improved borrower profitability and should reduce portfolio credit risk ◼ Federal crop insurance programs mitigate producti
Slide 7: Loan Portfolio Overview: Asset Quality and Reserves
Loan Portfolio Overview: Asset Quality and Reserves Non - performing Assets/Total Assets % and Net Charge - off % Allowance for Loan Losses to Total Loans (%) 6 ◼ Substandard loans increased $10.7 million to $92.9 million and Pass - Watch loans decreased $39.4 million to $108.9 million as of March 3
Slide 8: Securities Portfolio Overview
U.S. Treasury 12% Yield:1.38% U.S. Gov't Agency 10% Yield: 1.61% Municipal 22% Yield: 1.98% Agency RMBS 19% Yield: 1.96% Agency CMBS 33% Yield: 1.71% Corporate 4% Yield: 3.61% Securities Portfolio Overview ◼ Company’s debt securities consist primarily of the following types of fixed income instrumen
Slide 9: Net Interest Margin
◼ The low interest rate environment pressured the net interest margin, however net interest margin less PPP loan fees and loan dis count accretion increased the last two quarters ◼ 41% of the loan portfolio matures or reprices within the next 12 months ◼ Loan mix is 65% fixed rate and 35% variable r
Slide 10: Wealth Management Overview
Wealth Management Overview 9 Comprehensive Wealth Management Services ◼ Proprietary investment management solutions ◼ Financial planning ◼ Trust and estate administration $4.5 $4.8 $5.9 $1.5 $1.6 $1.7 $2.0 $0.4 $0.4 $0.4 $0.2 $0.3 $0.3 $0.3 $0.3 $0.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 2019 2020 2021 1Q 2
Slide 11: Near-Term Outlook
Near - Term Outlook ◼ Developing macroeconomic trends creating a more challenging environment for generating loan growth in 2022 ➢ Continued discipline in pricing and interest rate risk management will likely continue to impact new C&I and CRE loan product ion ➢ Loan production pipelines at March 31
Slide 12: Our history – Long track record of organic and acquisitive growth
Our history – Long track record of organic and acquisitive growth Fred Drake named President and CEO of Heartland Bank and Trust Company and leads its entry into Bloomingt on - Normal 1992 1964 - 1982 George Drake purchases El Paso National Bank and assembles group of banks in rural communities in C
Slide 13: Our markets
Our markets Branch locations Chicago MSA 34% Iowa 4% Mid - sized Illinois markets 62% Deposits Chicago MSA 48% Iowa 11% Mid - sized Illinois markets 41% Chicago MSA 29% Iowa 7% Mid - sized Illinois markets 64% $2.5bn $3.8bn 61 branches 12 Source: S&P Global Market Intelligence Note: Financial data a
Slide 14: Business strategy
Business strategy ◼ Drake family involved in Central IL banking since 1920 ◼ Management lives and works in our communities ◼ Community banking and relationship - based approach stems from adherence to our Midwestern values ◼ Committed to providing products and services to support the unique needs of
Slide 15: Experienced executive management team with deep community ties
Experienced executive management team with deep community ties Fred L. Drake Chairman and CEO 39 years with Company 42 years in industry J. Lance Carter President and Chief Operating Officer 20 years with Company 28 years in industry Patrick F. Busch Chief Lending Officer, President of Heartland Ban
Slide 16: Talented Board of Directors with deep financial services industry experience
Talented Board of Directors with deep financial services industry experience Fred L. Drake Chairman • Director since 1984 • CEO of HBT Financial • 39 years with Company • 42 years in industry J. Lance Carter Director • Director since 2011 • President and COO of HBT Financial • 20 years with Company
Slide 17: Investment highlights
Investment highlights 4 1 2 3 5 Track record of successfully integrating acquisitions Consistent performance through cycles Leading deposit share in mid - sized markets provides funding for stronger loan demand in higher growth areas Stable, low - cost deposit base well - positioned for rising rates
Slide 18: Consistent performance through cycles
Consistent performance through cycles… Drivers of profitability Pre - tax return on average assets (%) 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 2006 2007 2008 2009 2010 2011¹ 2012¹ 2013¹ 2014 2015 2016 2017 2018 2019 2020 2021 Source: S&P Global Market Intelligen
Slide 19: Drives compelling tangible book value growth
. . . drives compelling tangible book value growth Tangible book value per share over time ($ per share) 1 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 $16 per share. Total
Slide 20: Leading deposit share in mid-sized markets
Leading deposit share in mid - sized markets provides funding for stronger loan demand in higher growth areas County Deposits ($mm) Branches Market share Rank McLean $635 9 16.7% 2 DeKalb 403 7 13.8% 4 Cook 271 2 0.1% 53 Tazewell 262 7 7.6% 2 Woodford 252 6 26.6% 2 Bureau 246 4 21.0% 1 Logan 220 3 3
Slide 21: Stable, low-cost deposit base well-positioned for rising rates
Stable, low - cost deposit base well - positioned for rising rates Cost of deposits* (%) remains consistently below peers Source: S&P Global Market Intelligence Note: 1 Represents median of 23 high performing major exchange - traded banks headquartered in the Midwest with $2 - 10bn in assets and a 2
Slide 22: Track record of successfully integrating acquisitions
Farmer City State Bank Farmer City, IL $70mm deposits Citizens First National Bank Princeton, IL FDIC - assisted $808mm deposits Track record of successfully integrating acquisitions BankPlus Morton, IL $231mm deposits 2007 2012 Bank of Illinois Normal, IL FDIC - assisted $176mm deposits Western Spr
Slide 23: Prudent risk management
Prudent risk management ◼ Risk management culture instilled by management ◼ Well - diversified loan portfolio across commercial, regulatory CRE, and residential ◼ Primarily originated across in - footprint borrowers ◼ Centralized credit underwriting group that evaluates all exposures over $500,000 t
Slide 24: Appendix
Appendix 23
Slide 25: Non-GAAP reconciliations: Adjusted net income and adjusted ROAA
Non - GAAP reconciliations Adjusted net income and adjusted ROAA ($000) 2019 2020 2021 1Q22 Net income $66,865 $36,845 $56,271 $13,604 C - Cor p equivalent adjustment 1 (13,493) -- -- -- C - Corp equivalent net income 1 $53,372 $36,845 $56,271 $13,604 Adjustments: Acquisition expenses -- -- (1,416)
Slide 26: Non-GAAP reconciliations (cont'd): Average tangible common equity and adjusted ROATCE
Non - GAAP reconciliations (cont’d) Average tangible common equity and adjusted ROATCE ($000) 2019 2020 2021 1Q22 Total stockholders’ equity $341,544 $350,703 $380,080 $406,289 Less: goodwill (23,620) (23,620) (25,057) (29,322) Less: core deposit intangible assets (4,748) (3,436) (2,333) (1,844) Ave
Slide 27: Non-GAAP reconciliations (cont'd): Net interest margin
Non - GAAP reconciliations (cont’d) ($000) 2017 2018 2019 2020 2021 Net interest income $120,998 $129,442 $133,800 $117,605 $122,403 Tax equivalent adjustment 5,527 2,661 2,309 1,943 2,028 Net interest income (tax - equivalent basis) $126,525 $132,103 $136,109 $119,548 $124,431 Average interest - ea
Slide 28: Non-GAAP reconciliations (cont'd): Efficiency ratio
Non - GAAP reconciliations (cont’d) Efficiency ratio (tax - equivalent basis) ($000) 2019 2020 2021 1Q22 Total noninterest expense $91,026 $91,956 $91,246 $24,157 Less: amortization of intangible assets (1,423) (1,232) (1,054) (245) Adjusted noninterest expense $89,603 $90,724 $90,192 $23,912 Net in
Slide 29: Non-GAAP reconciliations (cont'd): Tangible book value per share
Non - GAAP reconciliations (cont’d) Tangible book value per share and cumulative effect of dividends (2007 to 3Q19) ($mm) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19 Tangible book value per share Total equity $109 $120 $130 $143 $197 $262 $257 $287 $311 $326 $324 $340 $349 Less
Slide 30: Non-GAAP reconciliations (cont'd): IPO adjusted tangible book value per share
Non - GAAP reconciliations (cont’d) IPO adjusted tangible book value per share ($mm) IPO Adjusted 3Q19 2019 2020 2021 1Q22 Tangible book value per share Total equity $333 $364 $412 $383 Less goodwill (24) (24) (29) (29) Less core deposit intangible (4) (3) (2) (2) Tangible common equity $305 $338 $3
Slide 31: Non-GAAP reconciliations (cont'd): Tangible common equity
Non - GAAP reconciliations (cont’d) ($000) 2019 2020 2021 1Q22 Tangible common equity Total equity $332,918 $363,917 $411,881 $383,155 Less goodwill (23,620) (23,620) (29,322) (29,322) Less core deposit intangible (4,030) (2,798) (1,943) (1,698) Tangible common equity $305,268 $337,499 $380,616 $352
Slide 32: Non-GAAP reconciliations (cont'd): Core deposits
Non - GAAP reconciliations (cont’d) ($000) 2019 2020 2021 1Q22 Total deposits $2,776,855 $3,130,534 $3,738,185 $3,816,069 Less time deposits of $250,000 or more (44,754) (26,687) (59,512) (34,973) Less brokered deposits -- -- (4,238) (4,239) Core deposits $2,732,101 $3,103,847 $3,674,435 $3,776,857
Slide 33: HBT Financial, Inc.
HBT Financial, Inc.