HBT Financial(US:HBT)2026-01-26 12:00Financial Performance - Net income for Q4 2025 was $18.9 million, or $0.60 diluted earnings per share, down from $19.8 million, or $0.63 per share in Q3 2025[3] - Adjusted net income for Q4 2025 was $20.1 million, or $0.64 per diluted share, compared to $20.5 million, or $0.65 per share in Q3 2025[6] - Net income for the year ended December 31, 2025, was $77,008,000, an increase of 7.9% compared to $71,780,000 for the year ended December 31, 2024[57] - Adjusted net income for the year ended December 31, 2025, was $79,647,000, up from $75,002,000 in 2024, reflecting a growth of 6.5%[57] - Earnings per share (diluted) for Q4 2025 was $0.60, down from $0.63 in Q3 2025 and $0.64 in Q4 2024, marking a decrease of 6.3% year-over-year[35] - The efficiency ratio for Q4 2025 was 53.64%, compared to 53.17% in Q3 2025 and 51.16% in Q4 2024, indicating a decline in operational efficiency[35] - The net interest margin (tax-equivalent basis) for Q4 2025 was 4.16%, up from 4.01% in Q4 2024, indicating an improvement in profitability[63] - Return on average tangible common equity for Q4 2025 was 14.08%, down from 17.40% in Q4 2024, reflecting a decline in profitability metrics[71] Loans and Deposits - Loans increased by $56.2 million, or 6.6% annualized, during Q4 2025, totaling $3.46 billion[4] - Total deposits rose to $4.36 billion at December 31, 2025, a $12.1 million increase from Q3 2025[16] - The loan to deposit ratio was 79.28% in Q4 2025, an increase from 78.21% in Q3 2025 but a decrease from 80.27% in Q4 2024, indicating a tightening in liquidity[35] - Average loans increased to $3,432,308,000 in December 2025 from $3,379,637,000 in September 2025, reflecting a growth of 1.6%[55] Noninterest Income and Expense - Noninterest income for Q4 2025 was $9.9 million, a slight increase from $9.8 million in Q3 2025[10] - Noninterest expense for Q4 2025 was $33.1 million, a 1.7% increase from Q3 2025, primarily due to acquisition-related expenses[12] - Total noninterest income for Q4 2025 was $9,895,000, compared to $11,630,000 in Q4 2024, reflecting a decrease of 14.9% year-over-year[65] Credit Losses and Asset Quality - The company reported a provision for credit losses of $1.5 million for Q4 2025, reflecting a $2.2 million increase in required reserves[18] - Nonperforming assets remained stable at 0.17% of total assets, with net charge-offs of $0.8 million, or 0.10% of average loans on an annualized basis[17][19] - The provision for credit losses increased to $1,463,000 in Q4 2025 from $596,000 in Q3 2025 and $725,000 in Q4 2024, reflecting a significant rise in credit risk[35] - Total nonperforming assets increased to $8,682,000 in December 2025, up from $8,649,000 in September 2025 and $8,023,000 in December 2024, representing a year-over-year increase of 8.2%[54] Capital and Equity - The tangible book value per share increased to $17.20, a 16.2% increase over the past year[4] - Total capital to risk-weighted assets ratio was 16.82% in Q4 2025, slightly up from 16.77% in Q3 2025 and 16.51% in Q4 2024, indicating a stable capital position[35] - Stockholders' equity increased to $608,822 thousand, up from $589,076 thousand in the previous quarter[44] - The book value per share rose to $19.58 in Q4 2025, up from $17.26 in Q4 2024, indicating a year-over-year increase of 13.4%[69] Mergers and Acquisitions - HBT Financial is pursuing a merger with CNB Bank Shares, expected to enhance its presence in the Chicago and St. Louis markets[4] - The proposed merger with CNB is subject to shareholder approval and regulatory conditions, which may affect the transaction's timing and outcome[29] - The company has filed a Registration Statement with the SEC regarding the proposed transaction, which includes important information for shareholders[29] - Investors can access free copies of relevant documents filed with the SEC through the company's website and the SEC's website[30] Risk Management - The company is focused on managing liquidity risk and maintaining an adequate level of allowance for credit losses on loans[27] - The company is actively managing risks related to technological changes and cybersecurity threats[26] - The company is preparing for potential economic impacts from external events such as climate change and geopolitical tensions[27] - Factors affecting future performance include competition from non-bank entities and changes in interest rates[26] Forward-Looking Statements - The forward-looking statements indicate that actual results may differ materially due to various economic and regulatory factors[25]