HBT Financial (HBT) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.02%. A quarter ago, it was expected that this bank holding company would post earnings of $0.58 per share when it actually produced earnings of $0.62, delivering a surprise of 6.90%.Over the last four quarters, the ...

Core Points - HBT Financial, Inc. reported a net income of $19.1 million, or $0.60 diluted earnings per share, for Q1 2025, a decrease from $20.3 million, or $0.64 per share in Q4 2024, but an increase from $15.3 million, or $0.48 per share in Q1 2024 [2][4][9] - The company expressed confidence in its performance for 2025 despite economic uncertainties, citing strong profitability and a solid balance sheet [3][4] - Adjusted net income for Q1 2025 was $19.3 million, or $0.61 per diluted share, slightly down from $19.5 million, or $0.62 per share in Q4 2024, and up from $18.1 million, or $0.57 per share in Q1 2024 [6][9] Financial Performance - Net interest income for Q1 2025 was $48.7 million, a 2.8% increase from $47.4 million in Q4 2024, and a 4.3% increase from $46.7 million in Q1 2024 [7][8] - The net interest margin for Q1 2025 was 4.12%, up from 3.96% in Q4 2024 and 3.94% in Q1 2024 [9][11] - Noninterest income decreased by 20.0% to $9.3 million in Q1 2025 from $11.6 million in Q4 2024, but increased by 65.4% from $5.6 million in Q1 2024 [13][14] Asset Quality - Nonperforming assets totaled $5.6 million, or 0.11% of total assets, down from $8.0 million, or 0.16% in Q4 2024, and $9.9 million, or 0.20% in Q1 2024 [21] - The company recorded net charge-offs of $0.4 million, or 0.05% of average loans on an annualized basis, compared to $0.7 million, or 0.08% in Q4 2024 [23] - The allowance for credit losses was 1.22% of total loans as of March 31, 2025, compared to 1.21% at the end of Q4 2024 [24] Capital Position - As of March 31, 2025, the company exceeded all regulatory capital requirements under Basel III, with a total capital to risk-weighted assets ratio of 16.85% [25] - Tangible book value per share increased by $0.63 to $15.43 as of March 31, 2025, reflecting a 4.3% increase for the quarter and a 17.0% increase year-over-year [4][25] - The company did not repurchase shares during Q1 2025, maintaining $15.0 million available under its stock repurchase program [26] Loan and Deposit Trends - Total loans outstanding were $3.46 billion at March 31, 2025, nearly unchanged from $3.47 billion at December 31, 2024, but up from $3.35 billion at March 31, 2024 [18] - Total deposits increased to $4.38 billion at March 31, 2025, from $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024 [19]

Financial Performance - Net income for Q1 2025 was $19.1 million, or $0.60 diluted earnings per share, compared to $20.3 million, or $0.64 per diluted share in Q4 2024, and $15.3 million, or $0.48 per diluted share in Q1 2024[3][6] - Adjusted net income for Q1 2025 was $19.3 million, or $0.61 adjusted diluted earnings per share, compared to $19.5 million, or $0.62 adjusted diluted earnings per share in Q4 2024, and $18.1 million, or $0.57 adjusted diluted earnings per share in Q1 2024[7] - Net income for the quarter was $19,075,000, up from $15,258,000 in the prior year, reflecting a year-over-year increase of 25.5%[31] - Earnings per share (diluted) for Q1 2025 was $0.60, compared to $0.48 for the same period in 2024, marking a 25% increase[31] - Adjusted earnings per share (EPS) for Q1 2025 was $0.61, up from $0.57 in Q1 2024, reflecting a 7% increase[51] Income and Revenue - Net interest income increased by 2.8% to $48.7 million in Q1 2025 from $47.4 million in Q4 2024, and by 4.3% from $46.7 million in Q1 2024[8][9] - For the three months ended March 31, 2025, net interest income was $48,708,000, an increase from $46,688,000 for the same period in 2024, representing a growth of 4.4%[31] - Total interest and dividend income for Q1 2025 was $63,138,000, an increase of 2.0% from $62,798,000 in Q4 2024 and up 1.9% from $61,961,000 in Q1 2024[34] - Net interest income for Q1 2025 reached $48,708,000, an increase from $46,688,000 in Q1 2024, representing a growth of 4.3%[52] Noninterest Income - Noninterest income decreased by 20.0% to $9.3 million in Q1 2025 from $11.6 million in Q4 2024, but increased by 65.4% from $5.6 million in Q1 2024[11][12] - Noninterest income for the quarter was $9,306,000, a decrease from $11,630,000 in the previous quarter, representing a decline of 20%[31] - Total noninterest income decreased to $9,306,000 in Q1 2025 from $11,630,000 in Q4 2024, a decline of 20.0%[34] Assets and Loans - Total loans outstanding were $3.46 billion at March 31, 2025, nearly unchanged from $3.47 billion at December 31, 2024, and up from $3.35 billion at March 31, 2024[16] - Total assets as of March 31, 2025, were $5,092,192,000, an increase from $5,032,902,000 at the end of Q4 2024, reflecting a growth of 1.2%[36] - Commercial and industrial loans increased to $441,261,000 in Q1 2025 from $428,389,000 in Q4 2024, a growth of 3.0%[38] Deposits - Total deposits increased to $4.38 billion at March 31, 2025, from $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024[17] - Total deposits increased to $4,384,590,000 in Q1 2025 from $4,318,254,000 in Q4 2024, marking a growth of 1.5%[38] - Noninterest-bearing deposits rose to $1,065,874,000 in Q1 2025, compared to $1,046,405,000 in Q4 2024, an increase of 1.3%[38] Asset Quality - Nonperforming assets decreased to $5.6 million, or 0.11% of total assets, at March 31, 2025, down from $8.0 million, or 0.16% at December 31, 2024[18] - Nonperforming loans to loans ratio improved to 0.15%, down from 0.29% in the same quarter last year, indicating better asset quality[31] - Nonaccrual loans to loans ratio improved to 0.15% as of March 31, 2025, compared to 0.22% at December 31, 2024[45] Credit Losses - The provision for credit losses was $576,000, compared to $527,000 in the same period last year, indicating a 9.3% increase[31] - The allowance for credit losses was 1.22% of total loans at March 31, 2025, compared to 1.21% at December 31, 2024[21] - The allowance for credit losses increased to $42,111 thousand as of March 31, 2025, compared to $42,044 thousand at December 31, 2024, indicating a slight increase of 0.16%[45] Capital and Efficiency - The Company exceeded all regulatory capital requirements under Basel III, with total capital to risk-weighted assets at 16.85% as of March 31, 2025[22] - Total capital to risk-weighted assets was 16.85%, up from 15.79% a year ago, reflecting a stronger capital position[31] - The efficiency ratio was 53.85%, an increase from 58.41% in the same quarter last year, indicating improved operational efficiency[31] - The return on average assets for the three months ended March 31, 2025, was 1.54%, slightly down from 1.61% in the previous quarter[48] - Tangible common equity increased to $488,089,000 in Q1 2025 from $416,889,000 in Q1 2024, a growth of 17.1%[58] - Return on average tangible common equity for Q1 2025 was 16.20%, up from 14.83% in Q1 2024, indicating stronger profitability[59] Stock Repurchase - The Board of Directors authorized a stock repurchase program of up to $15.0 million, with $15.0 million remaining as of March 31, 2025[22]

Core Insights - HBT Financial (HBT) is expected to report quarterly earnings of $0.57 per share, indicating no change from the previous year [1] - Analysts forecast revenues of $56.7 million, representing an increase of 8.4% year over year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, reflecting analysts' reassessment of projections [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions to the stock [2] - Empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [2] Key Financial Metrics - Analysts expect 'Net interest margin (FTE)' to be 4.0%, unchanged from the year-ago figure [3] - The consensus for 'Average Balances - Interest-earning assets' is $4.81 billion, up from $4.77 billion year over year [4] - The 'Efficiency Ratio' is expected to be 55.2%, improved from 58.4% in the previous year [4] - 'Net interest income (FTE)' is projected to reach $47.72 million, compared to $47.26 million in the same quarter last year [4] - Estimated 'Total noninterest income' is $9.29 million, up from $5.63 million in the same quarter of the previous year [5] Stock Performance - HBT Financial shares have decreased by 5.9% in the past month, compared to a 3.9% decline in the Zacks S&P 500 composite [6] - HBT has a Zacks Rank of 4 (Sell), indicating expected underperformance relative to the overall market [6]

Company Overview - HBT Financial, Inc. is headquartered in Bloomington, Illinois, and serves as the holding company for Heartland Bank and Trust Company, with banking operations dating back to 1920 [2] - The company offers a wide range of financial products and services to consumers, businesses, and municipal entities across Illinois and eastern Iowa, operating 66 full-service branches [2] - As of December 31, 2024, HBT Financial reported total assets of $5.0 billion, total loans of $3.5 billion, and total deposits of $4.3 billion [2] Upcoming Financial Results - HBT Financial will release its first quarter 2025 financial results before the market opens on April 21, 2025 [1] - An investor presentation and press release regarding the financial results will be available on the company's investor relations website [1]

Company Overview - HBT Financial, Inc. is headquartered in Bloomington, Illinois, and serves as the holding company for Heartland Bank and Trust Company, with banking operations dating back to 1920 [2] - The company offers a wide range of financial products and services to consumers, businesses, and municipal entities across Illinois and eastern Iowa, operating 66 full-service branches [2] - As of December 31, 2024, HBT Financial reported total assets of $5.0 billion, total loans of $3.5 billion, and total deposits of $4.3 billion [2] Upcoming Financial Results - HBT Financial will release its first quarter 2025 financial results before the market opens on April 21, 2025 [1] - An investor presentation and press release regarding the financial results will be available on the company's investor relations website [1]

Financial Position and Assets - As of December 31, 2024, HBT Financial had total assets of $5.0 billion, loans held for investment of $3.5 billion, and total deposits of $4.3 billion[16]. - The acquisition of Town and Country Financial Corporation added total assets of $937.2 million, total loans held for investment of $635.4 million, and total deposits of $720.4 million[17]. - The total consideration for the acquisition included 3.4 million shares of common stock and $38.0 million in cash, amounting to approximately $109.4 million[18]. - HBT Financial's branch network included 66 full-service branch locations throughout Illinois and eastern Iowa, holding a leading deposit market share in many central Illinois markets[30]. Growth Strategy and Market Opportunities - The company aims to deploy excess deposit funding into loan growth opportunities, particularly in the Chicago MSA, where it sees significant potential[33]. - HBT Financial's competitive strategy emphasizes relationship-based service and efficient decision-making to counteract increasing competition from online financial institutions and fintech companies[44]. - The company anticipates future growth will depend on successful acquisition strategies, particularly in mature, rural communities with limited population growth[189]. Regulatory Environment and Compliance - The Company is subject to extensive federal and state regulations that impact its growth and earnings performance[48]. - The Company is legally obligated to act as a source of financial strength to the Bank under the Bank Holding Company Act[65]. - The Company must comply with liquidity requirements, ensuring it maintains sufficient liquidity to meet financial obligations, especially in light of recent banking failures[86]. - The Bank must comply with the Bank Secrecy Act (BSA) and Anti-Money Laundering regulations, which impose strict policies for customer identification and reporting suspicious activities[105][106]. - The company is subject to extensive regulation by the Federal Reserve, FDIC, and IDFPR, which may significantly affect its operations and financial condition[161]. Capital Requirements and Financial Health - As of December 31, 2024, the Bank was well-capitalized, meeting the Federal Reserve's requirements and Basel III Rule standards[62]. - The Basel III Rule requires a Common Equity Tier 1 Capital ratio of 4.5% of risk-weighted assets, with a conservation buffer increasing this to 7%[58]. - The Company currently meets the Basel III capital requirements but may face challenges in maintaining compliance in the future[168]. - The Bank is required to maintain capital levels in accordance with Federal Reserve capital adequacy requirements, ensuring it is well-capitalized and well-managed[70]. Credit and Operational Risks - HBT Financial maintains a prudent approach to credit underwriting, focusing on robust standards to optimize risk-adjusted returns[34]. - The company faces significant credit risks, as borrowers may be unable or unwilling to repay their obligations, potentially leading to unexpected losses[118]. - The majority of the loan portfolio consists of commercial and commercial real estate loans, which may carry a higher degree of risk compared to other types of loans[125]. - The company is exposed to liquidity risks, which could adversely impact operations if liquid funds cannot be obtained at reasonable prices[116]. - The company’s strategy of pursuing growth through acquisitions exposes it to operational risks that could adversely affect financial condition and growth prospects[116]. Economic and Market Conditions - Changes in economic conditions, particularly in the Illinois and Iowa markets, may adversely impact borrowers and the company's business[116]. - The company's financial performance is highly dependent on local economic conditions in Illinois and Iowa, which may differ from the overall U.S. economy[211]. - Adverse economic conditions could lead to increased loan delinquencies, defaults, and charge-offs, negatively impacting the quality of the loan portfolio[212]. - Continued elevated levels of inflation could harm consumer purchasing power, affecting both retail and business customers[213]. Technology and Cybersecurity Risks - The company faces significant cybersecurity risks, including fraudulent activities and data breaches, which could lead to financial losses and damage to reputation[149]. - The reliance on third-party vendors for critical systems poses risks; failures or breaches in these systems could disrupt operations and adversely affect financial condition[152]. - The rapid technological changes in the financial services industry require substantial investment, which may be difficult for the company compared to larger competitors[157]. - The emergence of generative artificial intelligence presents both opportunities and risks, including potential fraud and compliance challenges, which could disrupt operations if not managed properly[159]. Shareholder and Governance Issues - The principal stockholder, Heartland Bancorp, Inc. Voting Trust, owns approximately 54.5% of the outstanding shares, allowing significant influence over company decisions[196]. - The company is classified as a "controlled company," which allows it to qualify for exemptions from certain corporate governance requirements[200]. - Regulatory requirements may limit stockholder influence and acquisitions without prior approval, potentially impacting corporate governance[208]. Future Outlook and Challenges - The company may need to raise additional capital in the future, which could be challenging due to market conditions and competition with other financial institutions[145]. - Future sales of common stock could depress stock prices and impair the ability to raise capital through additional share sales[204]. - Legal and regulatory changes related to cannabis-related businesses could introduce additional risks to the company's operations[178]. - Changes in financial accounting standards could materially impact how the company reports its financial condition and results of operations[187].

Core Viewpoint - HBT Financial (HBT) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.58 per share, reflecting a year-over-year increase of +1.75% - The Zacks Consensus Estimate for HBT Financial has risen by 11.97% over the last 30 days, with two estimates increasing and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, HBT Financial is expected to earn $2.34 per share, which is a +3.54% change from the previous year - The consensus estimate has increased by 8.82% over the past month, with three estimates moving higher and no negative revisions [5]. Favorable Zacks Rank - HBT Financial has achieved a Zacks Rank 1 (Strong Buy) due to the positive estimate revisions, which historically correlate with strong stock performance - Stocks with Zacks Rank 1 and 2 have been shown to significantly outperform the S&P 500 [6]. Bottom Line - The stock has gained 7.6% over the past four weeks, driven by solid estimate revisions, suggesting that it may be a good addition to investment portfolios [7].

Financial Performance - HBT Financial reported revenue of $59.03 million for the quarter ended December 2024, representing a 4.9% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.62, up from $0.60 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $57.4 million by 2.84% [1] - The company delivered an EPS surprise of 6.90%, with the consensus EPS estimate being $0.58 [1] Key Metrics - Net interest margin (FTE) was 4%, matching the average estimate from two analysts [4] - Average balances of interest-earning assets were $4.76 billion, slightly below the average estimate of $4.77 billion [4] - Net charge-offs to average loans stood at 0.1%, consistent with the average estimate [4] - Efficiency ratio was 51.2%, better than the estimated 54.2% [4] - Card income was reported at $2.80 million, below the average estimate of $2.87 million [4] - Other noninterest income was $0.69 million, compared to the average estimate of $0.98 million [4] - Net interest income (FTE) was $47.96 million, slightly above the average estimate of $47.91 million [4] - Service charges on deposit accounts were $2.08 million, exceeding the average estimate of $1.98 million [4] - Wealth management fees reached $3.14 million, surpassing the average estimate of $2.93 million [4] - Total noninterest income was $11.63 million, compared to the average estimate of $10.02 million [4] - Mortgage servicing income was $1.16 million, above the average estimate of $1.06 million [4] Stock Performance - HBT Financial shares returned 0.9% over the past month, while the Zacks S&P 500 composite increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]

Group 1 - HBT Financial reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of 6.90% [1] - The company posted revenues of $59.03 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.84%, compared to $56.29 million in the same quarter last year [2] - HBT Financial has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once in the same period [2] Group 2 - The stock has gained approximately 2.2% since the beginning of the year, while the S&P 500 has increased by 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $55.35 million, and for the current fiscal year, it is $2.15 on revenues of $225.65 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Northeast sector is in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - HBT Financial currently holds a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]