HBT Financial(US:HBT)2025-05-02 20:03PART I. FINANCIAL INFORMATION Consolidated Financial Statements HBT Financial, Inc.'s consolidated financial statements report total assets of $5.09 billion and Q1 2025 net income of $19.1 million, up from $15.3 million in Q1 2024, driven by increased net interest income Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $5,092,192 | $5,032,902 | | Loans, net | $3,419,667 | $3,424,102 | | Total Deposits | $4,384,590 | $4,318,254 | | Total Liabilities | $4,527,135 | $4,488,297 | | Total Stockholders' Equity | $565,057 | $544,605 | Consolidated Income Statement Highlights (Three Months Ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $48,708 | $46,688 | | Provision for Credit Losses | $576 | $527 | | Noninterest Income | $9,306 | $5,626 | | Noninterest Expense | $31,935 | $31,268 | | Net Income | $19,075 | $15,258 | | Diluted EPS | $0.60 | $0.48 | Note 2 – Securities As of March 31, 2025, the company held $706.1 million in AFS and $490.4 million in HTM debt securities, with AFS having $49.7 million in gross unrealized losses, which management expects to recover Debt Securities Portfolio (March 31, 2025) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Available-for-Sale | $754,493 | $706,135 | | U.S. Treasury & Agency | $163,299 | $154,643 | | Municipal | $149,697 | $132,338 | | Mortgage-backed & Corporate | $441,497 | $419,154 | | Held-to-Maturity | $490,398 | $445,762 | - As of March 31, 2025, $429.0 million in debt securities were pledged to secure public deposits, repurchase agreements, and other borrowings37 - The company realized $3.4 million in gross losses from debt security sales for Q1 2024, with no sales in Q1 202547 Note 3 – Loans and Related Allowance for Credit Losses Total loans were $3.46 billion as of March 31, 2025, with an ACL of $42.1 million (1.22% of loans), while nonaccrual loans decreased to $5.1 million, and the portfolio remains concentrated in commercial real estate, residential, and C&I loans Loan Portfolio Composition | Loan Category | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Commercial real estate - non-owner occupied | $891.0 | $899.6 | | One-to-four family residential | $455.4 | $464.0 | | Commercial and industrial | $441.3 | $428.4 | | Multi-family | $424.1 | $431.5 | | Total Loans | $3,461.8 | $3,466.1 | Allowance for Credit Losses Activity (Q1 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Beginning Balance (Dec 31, 2024) | $42,044 | | Provision for credit losses | $496 | | Charge-offs | ($665) | | Recoveries | $236 | | Ending Balance (Mar 31, 2025) | $42,111 | - Nonaccrual loans decreased to $5.1 million at March 31, 2025, from $7.7 million at year-end 2024, while loans past due 30-89 days increased to $10.4 million from $3.9 million69 Note 6 – Deposits Total deposits increased to $4.38 billion at March 31, 2025, from $4.32 billion at year-end 2024, driven by growth in noninterest-bearing and interest-bearing demand deposits Deposit Composition | Deposit Type | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Noninterest-bearing | $1,065.9 | $1,046.4 | | Interest-bearing demand | $1,143.7 | $1,099.1 | | Money market | $812.1 | $820.8 | | Savings | $575.6 | $566.5 | | Time | $787.3 | $785.4 | | Total Deposits | $4,384.6 | $4,318.3 | Note 11 – Regulatory Capital As of March 31, 2025, HBT Financial, Inc. and its subsidiary were 'well capitalized', with a Common Equity Tier 1 capital ratio of 13.48% and a Total Capital ratio of 16.85%, exceeding regulatory minimums Regulatory Capital Ratios (Consolidated) - March 31, 2025 | Ratio | Actual (%) | Required for Adequacy (%) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.48 | 4.50 | | Tier 1 Capital | 14.77 | 6.00 | | Total Capital | 16.85 | 8.00 | | Tier 1 Leverage | 11.64 | 4.00 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management reported Q1 2025 net income of $19.1 million, a 25.0% increase, driven by higher net interest income and no prior-year security losses, with net interest margin expanding to 4.12% and nonperforming assets decreasing by 30.6% to $5.6 million - Net income for Q1 2025 increased by $3.8 million (25.0%) year-over-year, primarily due to the absence of $3.4 million in prior-year security sale losses and a $2.0 million increase in net interest income187189 Key Performance Ratios (Q1 2025 vs Q1 2024) | Ratio | Q1 2025 (%) | Q1 2024 (%) | | :--- | :--- | :--- | | Net Interest Margin | 4.12 | 3.94 | | Return on Average Assets | 1.54 | 1.23 | | Return on Average Stockholders' Equity | 13.95 | 12.42 | | Efficiency Ratio | 53.85 | 58.41 | - Total nonperforming assets decreased by 30.6% to $5.6 million at March 31, 2025, from $8.0 million at year-end 2024, mainly due to a $1.6 million nonaccrual commercial real estate loan payoff228 Quantitative and Qualitative Disclosures about Market Risk The company's primary market risk is interest rate risk, with an asset-sensitive balance sheet where a 100 bps rate increase is projected to boost NII by 2.8% and EVE by 9.6%, while a decrease would reduce them Interest Rate Sensitivity Analysis (March 31, 2025) | Change in Interest Rates (bps) | Estimated % Change in EVE | Estimated % Change in NII (Year 1) | | :--- | :--- | :--- | | +200 | +17.9% | +4.7% | | +100 | +9.6% | +2.8% | | -100 | -11.5% | -4.6% | | -200 | -23.6% | -6.4% | - The cumulative deposit beta was 23.6% during the rising rate cycle (Q4 2021 - Q2 2024) and 15.1% since the falling rate cycle began in Q3 2024294 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025299 - No material changes to internal control over financial reporting occurred during the quarter300 PART II. OTHER INFORMATION Legal Proceedings The company is involved in routine legal actions incidental to its business, which management does not expect to materially affect its financial condition Risk Factors No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to risk factors were reported since the last Annual Report on Form 10-K302 Issuer Purchases of Equity Securities The company did not repurchase any common stock in Q1 2025, with a $15.0 million stock repurchase authorization remaining available until January 1, 2026 - No shares were repurchased in Q1 2025; a $15.0 million stock repurchase authorization remains available until January 1, 2026304305