Hbt Financial, Inc. · NASDAQ:HBT
Hbt Financial — Q2 2025 Earnings Presentation
39 slides from Hbt Financial's earnings presentation, Jul 21, 2025
Slide 1: Q2 2025 Results Presentation
Q2 2025 Results Presentation July 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: Q2 2025 Highlights
Q2 2025 Highlights n Net income of $19.2 million, or $0.61 per diluted share; return on average assets (ROAA) of 1.53% and return on average Strong profitability tangible common equity (ROATCE)1 of 15.55% and tangible book n Adjusted net income1 of $19.8 million, or $0.63 per diluted share; adjusted
Slide 4: Company Snapshot
Company Snapshot Overview Financial Highlights ($mm) ü Company incorporated in 1982 from a base of family-owned banks and completed its As of or for the period ended 2022 2023 2024 1H25 IPO in October 2019 Total assets $4,287 $5,073 $5,033 $5,018 ü Headquartered in Bloomington, Illinois, with operat
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 $1.0 million from the first quarter of ($000) 1Q25 Adj.1 1Q251 2Q25 Adj.1 2Q251 2025 with improved yields on debt securities and lower funding c
Slide 6: Deposit Overview
Deposit Overview Deposit Base Highlights Interest Spot Interest Costs* Rates2 n Highly granular deposit base with balances down during the second quarter of 2025 primarily due to seasonal tax payments and lower retail account balances 2Q25 As of 6/30/25 Interest-bearing demand 0.56 % 0.56 % n Top 10
Slide 7: Net Interest Margin
Net Interest Margin n Second quarter 2025 net interest margin and net interest margin (tax- Scheduled Fixed Rate Loan Maturities equivalent basis)1 increased 2 and 3 basis points, respectively, from the prior quarter ($000) 3Q25 4Q25 1Q26 2Q26 2H26 n Higher debt securities yields contributed 3 basis
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 $737 million portfolio as of June 30, 2025 n $1.67 billion portfolio as of June 30, 2025 n $419 million in C&I loans primarily for working capital, asset acquisition, n $907 mi
Slide 9: Loan Portfolio Overview: Selected Portfolios
Loan Portfolio Overview: Selected Portfolios Agriculture and Farmland Municipal, Consumer and Other n $272 million portfolio as of June 30, 2025 n $217 million portfolio as of June 30, 2025 n Borrower operations focus primarily on corn and soybean production n Commercial tax-exempt loans which are s
Slide 10: Loan Portfolio Overview: ACL and Asset Quality
Loan Portfolio Overview: ACL and Asset Quality 2Q25 ACL on Loans Activity ($000) $42,111 $850 $726 $41,659 $(1,047) $(54) $(927) 1Q25 Net Charge-Offs Changes in Changes in Changes in Changes in 2Q25 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 78,000 acres managed as of June 30, 2025 n Financial planning n Real estate brokerage including auction services n Trust and estate
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 $ 814,495 $ 481,942 $ 1,296,437 n Agency guaranteed MBS: MBS pass-throughs, CMOs, a
Slide 13: Capital and Liquidity Overview
Capital and Liquidity Overview CET1 Risk-Based Capital Ratio (%) Capital and Liquidity Highlights 14.26 n All capital measures increased during 2Q25 and remain well above regulatory 13.37 13.07 13.21 12.12 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 We expect loan growth in the 2% to 5% range on an annualized basis for 3Q25 as loan pipelines were higher at the end of 2Q25 compared to the end of 1Q25 and lower payoffs are projected. n We expect deposit balances to be flat in 3Q25. n We intend to purchase debt securities at a
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% $4.3bn Chicago MSA: 29% Central Illinois: 68% Loans Iowa: 10% $3.3bn 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 2 years with Company 45 years in industry 23 years with Company 31 years in industry 31 ye
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: . . . and consistent out-performance of peers. . .
1 . . . and consistent out-performance of peers. . . Robust Capitalization Superior Profitability CET1 Capital Ratio (%) Return on Average Equity (%) 13.07 13.21 13.48 14.73 14.60 12.12 13.43 13.93 13.95 11.04 11.42 11.62 12.50 10.68 11.30 11.04 2022 2023 2024 1Q25 2022 2023 2024 1Q25 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) $225.00 $200.00 $175.00 $150.00 $125.00 $100.00 $75.00 1 10/11/2019 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 6/30/2025 (IPO Date) HBT Financial, Inc.
Slide 24: Strong, granular, low-cost deposit base provides funding for . . .
2 Strong, granular, low-cost deposit base provides funding for . . . Deposit Base Characteristics2 Cost of Deposits (%) Remains Consistently Below Peers Average 1 HBT Peer Median 1 Number of Account Weighted Accounts Balance Average Age 2.06 As of 6/30/25 (000) ($000) (Years) 1.92 Noninterest-bearin
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 June 30, 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 MSA
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 1H25 1Q25 2Q25 Net income $ 56,456 $ 65,842 $ 71,780 $ 38,305 $ 19,075 $ 19,230 Adjustments: Acquisition expenses1 (1,092) (13,691) — — — — Gains (losses) on closed branch premises 141 75 (635) 9 59 (50) Realized lo
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Earnings Per Share ($000) 2Q25 Numerator: Net income $ 19,230 Adjusted net income $ 19,803 Denominator: Weighted average common shares outstanding 31,510,759 Dilutive effect of outstanding restricted stock units 77,782 Weighted average common shares outstanding, inc
Slide 31: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) ROATCE, Adjusted ROAE, and Adjusted ROATCE ($000) 2022 2023 2024 1H25 2Q25 Total stockholders’ equity $ 383,306 $ 450,928 $ 515,368 $ 563,659 $ 572,505 Less: goodwill (29,322) (57,266) (59,820) (59,820) (59,820) Less: core deposit intangible assets (1,480) (20,272)
Slide 32: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Net Interest Income (tax-equivalent basis) and Net Interest Margin (tax-equivalent basis) ($000) 2021 2022 2023 2024 1H25 Net interest income $ 122,403 $ 145,874 $ 191,072 $ 188,850 $ 98,366 Tax-equivalent adjustment1 2,028 2,499 2,758 2,242 1,093 Net interest incom
Slide 33: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Efficiency Ratio (tax-equivalent basis) ($000) 2022 2023 2024 1H25 Total noninterest expense $ 105,107 $ 130,964 $ 124,007 $ 63,849 Less: amortization of intangible assets (873) (2,670) (2,839) (1,389) Noninterest expense excluding amortization of intangible assets
Slide 34: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Tangible Common Equity to Tangible Assets ($000) 2021 2022 2023 2024 2Q25 Tangible common equity Total equity $ 411,881 $ 373,632 $ 489,496 $ 544,605 $ 580,897 Less: goodwill (29,322) (29,322) (59,820) (59,820) (59,820) Less: core deposit intangible (1,943) (1,070)
Slide 35: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Tangible Book Value Per Share ($000) 2Q24 1Q25 2Q25 Tangible common equity Total equity $ 509,469 $ 565,057 $ 580,897 Less: goodwill (59,820) (59,820) (59,820) Less: core deposit intangible (19,262) (17,148) (16,454) Tangible common equity $ 430,387 $ 488,089 $ 504,
Slide 36: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Core Deposits ($000) 2022 2023 2024 2Q25 Total deposits $ 3,587,024 $ 4,401,437 $ 4,318,254 $ 4,306,531 Less: time deposits of $250,000 or more (27,158) (130,183) (202,196) (203,334) Less: brokered deposits — (144,880) — — Core deposits $ 3,559,866 $ 4,126,374 $ 4,1
Slide 37: 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 38: 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 39: Besa
Besa