HBT Financial(US:HBT)2026-03-06 21:11Acquisitions - HBT Financial completed the acquisition of CNB Bank Shares, Inc. on March 1, 2026, with total consideration of approximately $182 million, consisting of 5.5 million shares and $34 million in cash[15][16]. - The acquisition of Town and Country Financial Corporation on February 1, 2023, added total assets of $937.2 million, total loans of $635.4 million, and total deposits of $720.4 million to HBT Financial[19]. - Total consideration for the Town and Country acquisition was approximately $109.4 million, including 3.4 million shares and $38 million in cash, with goodwill recorded at $30.5 million[20]. - HBT Financial aims to pursue strategic acquisitions to enhance growth opportunities, leveraging a history of successful integrations[38]. Financial Performance - Net income for the year ended December 31, 2025, was $77.0 million, an increase of $5.2 million or 7.3% compared to 2024[270]. - Net interest income increased by $10.0 million, driven by lower funding costs, higher yields on debt securities, and higher average loan balances[272]. - Total interest and dividend income for 2025 was $255.8 million, compared to $251.7 million in 2024[268]. - Net interest margin improved to 4.13% in 2025 from 3.96% in 2024[268]. - Total noninterest income rose to $38.2 million in 2025, compared to $35.6 million in 2024[268]. - Adjusted earnings per share for 2025 was $2.52, up from $2.37 in 2024[268]. - Efficiency ratio improved to 53.44% in 2025 from 53.99% in 2024[268]. Asset and Deposit Growth - As of December 31, 2025, HBT Financial had total assets of $5.1 billion, loans held for investment of $3.5 billion, and total deposits of $4.4 billion[261]. - Total assets reached $5,048,549 thousand in 2025, an increase from $5,008,083 thousand in 2024, indicating a growth of 0.80%[273]. - Total deposits increased by $41.0 million, or 0.9%, to $4.36 billion as of December 31, 2025[293]. - Noninterest-bearing deposits accounted for 24.1% of total deposits in 2025, up from 23.9% in 2024[318]. Credit Quality and Risk Management - The company maintains a strong credit culture, prioritizing asset quality and prudent underwriting practices to optimize risk-adjusted returns[37]. - The allowance for credit losses was $41,970 thousand in 2025, slightly higher than $40,694 thousand in 2024, reflecting a cautious approach to credit risk[273]. - Total nonperforming assets increased by 8.2% to $8.7 million as of December 31, 2025, compared to $8.0 million in the previous year[308]. - The company employs a disciplined approach to credit risk management, including portfolio diversification and routine loan monitoring practices[302]. Regulatory Compliance and Capital Adequacy - The Company and the Bank are well capitalized as of December 31, 2025, with regulatory capital exceeding Federal Reserve requirements and compliance with Basel III Rule requirements[67]. - The Company is required to maintain a Tier 1 Capital ratio of 6% and a Total Capital ratio of 8% to be considered adequately capitalized[64]. - The Company has not been subject to any directives from the FDIC or IDFPR to increase its capital as of December 31, 2025[67]. - The regulatory environment remains uncertain, with potential future changes in laws and regulations that could impact the Company's business operations[54]. Employee Engagement and Operational Efficiency - Employee engagement and retention strategies are in place, with an average tenure of 7.5 years for 826 full-time equivalent employees as of December 31, 2025[39]. - Total noninterest expense for the year ended December 31, 2025, was $129.4 million, an increase of $5.4 million, or 4.4%, from 2024[291]. - Employee benefits expense increased by $2.2 million, primarily due to higher medical benefits costs[292]. - Salaries expense rose by $1.2 million, mainly driven by annual merit increases[292]. Market Position and Competition - HBT Financial operates 66 full-service branch locations, holding a leading deposit market share in many central Illinois markets, which supports a strong deposit base[32]. - HBT Financial faces strong competition from community banks, credit unions, and financial technology companies, necessitating a focus on robust digital functionality and relationship-based service[44][46][47]. - The company emphasizes a community banking approach, focusing on relationship-based service and local decision-making to maintain a competitive advantage in the Chicago MSA[34][36].