HBT Financial(US:HBT)2025-10-31 20:10Financial Performance - Net interest income for the three months ended September 30, 2025, was $49,986 thousand, up from $47,733 thousand in the same period of 2024, representing an increase of 4.7%[14] - Net income for the nine months ended September 30, 2025, was $58,070 thousand, compared to $51,508 thousand for the same period in 2024, marking a year-over-year increase of 12.5%[14] - Earnings per share (diluted) for the three months ended September 30, 2025, was $0.63, compared to $0.57 for the same period in 2024, reflecting an increase of 10.5%[14] - Total comprehensive income for the nine months ended September 30, 2025, was $77,716,000, up from $69,682,000 in 2024, reflecting an increase of 11.6%[16] - Other comprehensive income for the three months ended September 30, 2025, was $5,620,000, compared to $15,667,000 in 2024, indicating a decrease of 64.1%[16] Asset and Deposit Growth - Total assets increased slightly to $5,035,027 thousand as of September 30, 2025, compared to $5,032,902 thousand at December 31, 2024, reflecting a growth of approximately 0.04%[12] - Total deposits increased to $4,347,187 thousand as of September 30, 2025, compared to $4,318,254 thousand at December 31, 2024, indicating a growth of 0.67%[12] - The total stockholders' equity as of September 30, 2025, was $599,129,000, an increase from $537,662,000 as of September 30, 2024, representing an increase of 11.4%[18] Credit Losses and Provisions - The allowance for credit losses decreased slightly to $41,900 thousand as of September 30, 2025, from $42,044 thousand at December 31, 2024[12] - The company reported a provision for credit losses of $596 thousand for the three months ended September 30, 2025, compared to $603 thousand in the same period of 2024[14] - The company reported a provision for credit losses of $1,698,000 for the nine months ended September 30, 2025, compared to $2,306,000 in 2024, a decrease of 26.4%[20] - Total charge-offs for the three months ended September 30, 2025, amounted to $723,000, while for the same period in 2024, it was $1,101,000, reflecting a reduction of 34.3%[62] - The total provision for credit losses for the nine months ended September 30, 2025, was $1,466,000, compared to $1,983,000 for the same period in 2024, indicating a decrease of 26.0%[62] Loan Portfolio - The company reported a net decrease in loans of $78,157,000 for the nine months ended September 30, 2025, compared to a decrease of $42,815,000 in 2024[22] - As of September 30, 2025, total loans before allowance for credit losses amounted to $3,400,029 thousand, a decrease from $3,466,146 thousand as of December 31, 2024, reflecting a decline of approximately 1.9%[57] - The total amount of loans classified as "Pass" was $3,215,114 thousand as of September 30, 2025, which is a slight decrease from $3,264,396 thousand as of December 31, 2024, representing a decline of about 1.5%[87] - The total amount of loans classified as "Substandard" is $80,093,000, which is a decrease from $24,731,000 in 2024, indicating a reduction of about 67.6%[91] Capital Adequacy - As of September 30, 2025, the total capital to risk-weighted assets ratio for HBT Financial, Inc. was 16.77%, exceeding the required 8.00%[142] - The Tier 1 capital to risk-weighted assets ratio was 15.67% as of September 30, 2025, above the minimum requirement of 6.00%[142] - Common Equity Tier 1 capital to risk-weighted assets ratio stood at 14.35% as of September 30, 2025, surpassing the required 4.50%[142] - The actual total capital for HBT Financial, Inc. was $650,579 thousand as of September 30, 2025[142] Interest Rate and Economic Impact - The cumulative deposit beta during the recent rising rate cycle (Q4 2021 to Q2 2024) was 23.6%, while it has decreased to 16.5% since the start of the current falling rate cycle (Q3 2024)[318] - The estimated impact on Economic Value of Equity (EVE) shows a decrease of 10.7% with a -100 basis point change in interest rates for September 30, 2025[321] - For a +400 basis point increase in interest rates, the estimated net interest income increase is 6.0% for Year 1 and 15.4% for Year 2 as of September 30, 2025[321] - The company utilizes rate shock analysis to monitor the impact of interest rate changes on net interest income and EVE[316] Risk Management - The company is focused on enhancing its risk management framework and internal controls to mitigate potential cybersecurity threats and other operational risks[10] - Credit risk is managed through well-defined underwriting criteria and portfolio diversification to mitigate concentration risk[322] - The company actively manages credit risk through an independent loan review process to ensure compliance with loan policies[322]