☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to
Commission file number:001-39085
HBT Financial, Inc.
(Exact name of registrant as specified in its charter)
Delaware
37-1117216
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
401 North Hershey Rd
Bloomington, Illinois61704
(309) 662-4444
(Address of principal executive offices,
including zip code)
(Registrant’s telephone number,
including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
HBT
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 23, 2025, there were 31,495,434 shares outstanding of the registrant’s common stock, $0.01 par value.
Certain statements contained in this Quarterly Report are forward-looking statements. Forward-looking statements may include statements relating to our plans, strategies and expectations, near-term loan growth, net interest margin, mortgage banking profits, wealth management fees, expenses, asset quality, capital levels, continued earnings, and liquidity. Forward-looking statements are generally identifiable by use of the words "believe," "may," "will," "should," "could," "expect," "estimate," "intend," "anticipate," "project," "plan" or similar expressions. Forward-looking statements are frequently based on assumptions that may or may not materialize and are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from the results anticipated or projected and which could materially and adversely affect our operating results, financial condition or prospects include, but are not limited to:
•the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints);
•effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders including tariffs, immigration policy, regulatory or other governmental agencies, foreign policy and tax regulations;
•the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events;
•new and revised accounting policies and practices, as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board;
•changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to bank failures;
•the imposition of tariffs or other governmental policies impacting the value of products produced by the Company's commercial borrowers;
•changes in interest rates and prepayment rates of the Company’s assets;
•increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers;
•technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence;
•unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated;
•the loss of key executives and employees, talent shortages and employee turnover;
•changes in consumer spending;
•unexpected outcomes or costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company;
•the economic impact on the Company and its customers of climate change, natural disasters and of exceptional weather occurrences such as tornadoes, floods and blizzards;
•fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates;
•credit risks and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio (including commercial real estate loans) and large loans to certain borrowers;
•the overall health of the local and national real estate market;
•the ability to maintain an adequate level of allowance for credit losses on loans;
•the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure;
•the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds;
•the level of nonperforming assets on our balance sheets;
•interruptions involving our information technology and communications systems or third-party servicers;
•the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud;
•the effectiveness of the Company’s risk management framework and internal disclosure controls and procedures;
•our asset quality and any loan charge-offs;
•the effects of changes in interest rates on our net interest income, net interest margin, our investments, our loan originations, and our modeling estimates relating to interest rate changes;
•our access to sources of liquidity and capital to address our liquidity needs;
•our inability to receive dividends from the Bank, pay dividends to our common stockholders or satisfy obligations as they become due;
•the effects of problems encountered by other financial institutions;
•our ability to achieve organic loan and deposit growth and the composition of such growth;
•our ability to successfully develop and commercialize new or enhanced products and services;
•current and future business, economic and market conditions in the United States (“U.S.”) generally or in the States of Illinois and Iowa in particular;
•the geographic concentration of our operations in the States of Illinois and Iowa;
•our ability to attract and retain customer deposits;
•our ability to maintain the Bank’s reputation;
•possible impairment of our goodwill and other intangible assets;
•market perceptions associated with certain aspects of our business;
•our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002;
•the ability of the Company to manage the risks associated with the foregoing as well as anticipated; and
•the factors discussed in "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" or elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange (“SEC”) Commission on March 7, 2025.
These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update any forward-looking statement in the future, or to reflect circumstances and events that occur after the date on which the forward-looking statement was made.
Debt securities held-to-maturity (fair value of $442,064 at 2025 and $445,186 at 2024)
481,942
499,858
Equity securities with readily determinable fair value
3,346
3,315
Equity securities with no readily determinable fair value
2,609
2,629
Restricted stock, at cost
4,979
5,086
Loans held for sale
2,316
1,586
Loans, before allowance for credit losses
3,348,211
3,466,146
Allowance for credit losses
(41,659)
(42,044)
Loans, net of allowance for credit losses
3,306,552
3,424,102
Bank owned life insurance
24,320
23,989
Bank premises and equipment, net
68,523
66,758
Bank premises held for sale
140
317
Foreclosed assets
890
367
Goodwill
59,820
59,820
Intangible assets, net
16,454
17,843
Mortgage servicing rights, at fair value
17,768
18,827
Investments in unconsolidated subsidiaries
1,614
1,614
Accrued interest receivable
20,624
24,770
Other assets
37,553
46,280
Total assets
$
5,018,398
$
5,032,902
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing
$
1,034,387
$
1,046,405
Interest-bearing
3,272,144
3,271,849
Total deposits
4,306,531
4,318,254
Securities sold under agreements to repurchase
556
28,969
Federal Home Loan Bank advances
7,240
13,231
Subordinated notes
39,593
39,553
Junior subordinated debentures issued to capital trusts
52,879
52,849
Other liabilities
30,702
35,441
Total liabilities
4,437,501
4,488,297
COMMITMENTS AND CONTINGENCIES (Note 14)
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding
—
—
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 32,899,104 at 2025 and 32,827,039 at 2024; shares outstanding of 31,495,434 at 2025 and 31,559,366 at 2024
329
328
Surplus
297,479
297,297
Retained earnings
341,750
316,764
Accumulated other comprehensive income (loss)
(32,739)
(46,765)
Treasury stock at cost, 1,403,670 shares at 2025 and 1,267,673 at 2024
(25,922)
(23,019)
Total stockholders’ equity
580,897
544,605
Total liabilities and stockholders’ equity
$
5,018,398
$
5,032,902
See accompanying Notes to Consolidated Financial Statements (Unaudited)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 1 – ACCOUNTING POLICIES
Basis of Presentation
HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.
The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025.
The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.
Use of Estimates
The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.
Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.
Subsequent Events
In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
Recent Legislation
On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic research and development expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. These changes were not reflected in the income tax provision for the period ended June 30, 2025, as enactment occurred after the balance sheet date. The Company is currently evaluating the impact on future periods.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Recent Accounting Pronouncements
In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard did not have a material impact on the Company’s consolidated results of operations or financial position.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 provides more decision-useful information about a public entity's expenses by requiring additional detail on expenses reported in income statements. Under the ASU, public entities will provide detailed disclosure in interim and annual periods of specified categories underlying certain expense captions. The ASU requires public entities to apply the amendments prospectively, with an option to use retrospective application. The amendments in this update are effective for years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
December 31, 2024
(dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Allowance for Credit Losses
Fair Value
Available-for-sale:
U.S. Treasury
$
119,690
$
—
$
(8,545)
$
—
$
111,145
U.S. government agency
55,742
—
(2,544)
—
53,198
Municipal
150,163
—
(19,484)
—
130,679
Mortgage-backed:
Agency residential
241,342
253
(14,227)
—
227,368
Agency commercial
128,823
3
(12,145)
—
116,681
Corporate
61,732
156
(2,910)
—
58,978
Total available-for-sale
$
757,492
$
412
$
(59,855)
$
—
$
698,049
December 31, 2024
(dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Allowance for Credit Losses
Held-to-maturity:
U.S. government agency
$
88,472
$
—
$
(8,819)
$
79,653
$
—
Municipal
35,862
48
(371)
35,539
—
Mortgage-backed:
Agency residential
85,643
—
(5,796)
79,847
—
Agency commercial
289,881
—
(39,734)
250,147
—
Total held-to-maturity
$
499,858
$
48
$
(54,720)
$
445,186
$
—
As of June 30, 2025 and December 31, 2024, the Bank had debt securities with a carrying value of $491.0 million and $468.8 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.
The amortized cost and fair value of debt securities by contractual maturity, as of June 30, 2025, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of June 30, 2025 and December 31, 2024, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:
June 30, 2025
Investments in a Continuous Unrealized Loss Position
Less than 12 Months
12 Months or More
Total
(dollars in thousands)
Unrealized
Loss
Fair Value
Unrealized
Loss
Fair Value
Unrealized
Loss
Fair Value
Available-for-sale:
U.S. Treasury
$
—
$
—
$
(5,733)
$
93,977
$
(5,733)
$
93,977
U.S. government agency
—
—
(1,540)
41,438
(1,540)
41,438
Municipal
(62)
2,816
(15,500)
129,218
(15,562)
132,034
Mortgage-backed:
Agency residential
(838)
53,005
(8,966)
116,454
(9,804)
169,459
Agency commercial
(132)
12,047
(8,933)
110,685
(9,065)
122,732
Corporate
(35)
5,847
(2,178)
29,798
(2,213)
35,645
Total available-for-sale
$
(1,067)
$
73,715
$
(42,850)
$
521,570
$
(43,917)
$
595,285
December 31, 2024
Investments in a Continuous Unrealized Loss Position
Less than 12 Months
12 Months or More
Total
(dollars in thousands)
Unrealized
Loss
Fair Value
Unrealized
Loss
Fair Value
Unrealized
Loss
Fair Value
Available-for-sale:
U.S. Treasury
$
—
$
—
$
(8,545)
$
111,145
$
(8,545)
$
111,145
U.S. government agency
(141)
7,594
(2,403)
45,604
(2,544)
53,198
Municipal
(8)
2,634
(19,476)
127,776
(19,484)
130,410
Mortgage-backed:
Agency residential
(2,041)
81,055
(12,186)
129,178
(14,227)
210,233
Agency commercial
(125)
3,327
(12,020)
112,118
(12,145)
115,445
Corporate
(4)
1,996
(2,906)
43,064
(2,910)
45,060
Total available-for-sale
$
(2,319)
$
96,606
$
(57,536)
$
568,885
$
(59,855)
$
665,491
As of June 30, 2025, there were 581 debt securities in an unrealized loss position for a period of twelve months or more, and 56 debt securities in an unrealized loss position for a period of less than twelve months.
U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Municipal securities include general obligation bonds which have a very low historical default rate due to issuers generally having taxing authority to service the debt and represent approximately 74% of the total fair value of our municipal securities portfolio as of June 30, 2025. The remainder of the municipal securities are also of high credit quality with ratings of Aa3/AA- or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in municipal securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.
Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.
As of June 30, 2025, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.
Accrued interest on debt securities is excluded from the estimate of credit losses and totaled $5.2 million and $5.1 million as of June 30, 2025 and December 31, 2024, respectively.
Sales of debt securities were as follows during the three and six months ended June 30:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Equity Securities
Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.
The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses were as follows:
June 30, 2025
(dollars in thousands)
Readily Determinable Fair Value
No Readily Determinable Fair Value
Initial cost
$
3,124
$
2,978
Cumulative net unrealized gains (losses)
222
(369)
Carrying value
$
3,346
$
2,609
December 31, 2024
(dollars in thousands)
Readily Determinable Fair Value
No Readily Determinable Fair Value
Initial cost
$
3,124
$
2,998
Cumulative net unrealized gains (losses)
191
(369)
Carrying value
$
3,315
$
2,629
As of June 30, 2025 and December 31, 2024, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.
Unrealized gains (losses) on equity securities were as follows during the three and six months ended June 30, 2025 and 2024:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 3 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES
Major categories of loans are summarized as follows:
(dollars in thousands)
June 30, 2025
December 31, 2024
Commercial and industrial
$
419,430
$
428,389
Commercial real estate - owner occupied
317,475
322,316
Commercial real estate - non-owner occupied
907,073
899,565
Construction and land development
310,252
374,657
Multi-family
453,812
431,524
One-to-four family residential
451,197
463,968
Agricultural and farmland
271,644
293,375
Municipal, consumer, and other
217,328
252,352
Loans, before allowance for credit losses
3,348,211
3,466,146
Allowance for credit losses
(41,659)
(42,044)
Loans, net of allowance for credit losses
$
3,306,552
$
3,424,102
Allowance for Credit Losses
Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.
At June 30, 2025, the economic forecast used by management anticipates a mild economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate increasing slightly during the remainder of 2025 then remaining stable and gross domestic product ("GDP") growth slowing during the remainder of 2025 and then increasing in 2026. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
June 30, 2025
Amortized Cost
Allowance for Credit Losses
Primary Collateral Type
(dollars in thousands)
Real Estate
Vehicles
Other
Total
Commercial and industrial
$
—
$
566
$
613
$
1,179
$
279
Commercial real estate - owner occupied
486
—
—
486
4
Commercial real estate - non-owner occupied
12,801
—
—
12,801
452
Construction and land development
475
—
—
475
—
Multi-family
44
—
—
44
—
One-to-four family residential
3,395
—
—
3,395
11
Agricultural and farmland
—
—
—
—
—
Municipal, consumer, and other
9,995
—
3,997
13,992
1,934
Total
$
27,196
$
566
$
4,610
$
32,372
$
2,680
December 31, 2024
Amortized Cost
Allowance for Credit Losses
Primary Collateral Type
(dollars in thousands)
Real Estate
Vehicles
Other
Total
Commercial and industrial
$
—
$
627
$
25
$
652
$
13
Commercial real estate - owner occupied
157
—
—
157
—
Commercial real estate - non-owner occupied
14,733
—
—
14,733
506
Construction and land development
249
—
—
249
33
Multi-family
92
—
—
92
92
One-to-four family residential
4,178
—
—
4,178
161
Agricultural and farmland
—
—
135
135
—
Municipal, consumer, and other
10,569
5
13
10,587
2,261
Total
$
29,978
$
632
$
173
$
30,783
$
3,066
Accrued interest on loans is excluded from the estimate of credit losses and totaled $15.3 million and $19.6 million as of June 30, 2025 and December 31, 2024, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Past Due and Nonaccrual Status
Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.
The following tables present loans by category based on current payment and accrual status:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Credit Quality Indicators
The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all loans that are part of relationships with over $750 thousand in total exposure to identify credit risks and to assess the overall collectability of the portfolio. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. Risk ratings are grouped into the following major categories:
Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.
Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a special mention, substandard, or doubtful classification.
Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.
Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.
Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. There were no loans classified as doubtful as of June 30, 2025 and December 31, 2024.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(dollars in thousands)
Term Loans by Origination Year
Revolving Loans
Revolving Loans Converted to Term
Total
2024
2023
2022
2021
2020
Prior
Municipal, consumer, and other
Pass
$
77,779
$
37,678
$
14,475
$
23,204
$
12,479
$
37,460
$
33,611
$
—
$
236,686
Pass-Watch
103
50
6
12
—
757
1
—
929
Special Mention
—
—
—
—
—
4,107
—
—
4,107
Substandard
21
5
33
—
—
10,570
1
—
10,630
Total
$
77,903
$
37,733
$
14,514
$
23,216
$
12,479
$
52,894
$
33,613
$
—
$
252,352
Total by risk rating
Pass
$
595,514
$
489,980
$
626,701
$
529,173
$
290,490
$
281,543
$
439,344
$
11,651
$
3,264,396
Pass-Watch
14,246
6,118
13,473
8,920
3,897
12,400
22,449
2,444
83,947
Special Mention
8,947
368
9,022
13,012
8,917
4,107
2,217
—
46,590
Substandard
25,265
12,382
3,126
4,910
4,806
18,039
1,275
1,410
71,213
Total
$
643,972
$
508,848
$
652,322
$
556,015
$
308,110
$
316,089
$
465,285
$
15,505
$
3,466,146
Modifications
There were no loan modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024. As of June 30, 2025 and December 31, 2024, modified loans totaled $0.5 million and $0.5 million, respectively, and were current and performing in accordance with the modified terms.
Pledged Loans
As of June 30, 2025 and December 31, 2024, the Company pledged loans totaling $1.81 billion and $1.91 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.
NOTE 4 – LOAN SERVICING
Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.49 billion and $1.55 billion as of June 30, 2025 and December 31, 2024, respectively. Activity in mortgage servicing rights was as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Beginning balance
$
18,519
$
19,081
$
18,827
$
19,001
Capitalized servicing rights
184
210
279
340
Fair value adjustments attributable to payments and principal reductions
(568)
(542)
(1,021)
(971)
Fair value adjustments attributable to changes in valuation inputs and assumptions
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 5 – FORECLOSED ASSETS
Foreclosed assets activity was as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Beginning balance
$
460
$
277
$
367
$
852
Transfers from loans
726
171
965
374
Proceeds from sales
(310)
(100)
(469)
(965)
Net gain (loss) on sales
14
(18)
41
95
Direct write-downs
—
(10)
(14)
(36)
Ending balance
$
890
$
320
$
890
$
320
Gains (losses) on foreclosed assets included the following:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Direct write-downs
$
—
$
(10)
$
(14)
$
(36)
Net gain (loss) on sales
14
(18)
41
95
Gains (losses) on foreclosed assets
$
14
$
(28)
$
27
$
59
As of June 30, 2025 and December 31, 2024, the carrying value of foreclosed one-to-four family residential real estate properties held was $0.4 million and $0.3 million, respectively. As of June 30, 2025, there were 6 one-to-four family residential real estate loans in the process of foreclosure totaling $0.6 million. As of December 31, 2024, there were 19 one-to-four family residential real estate loans in the process of foreclosure totaling $1.8 million.
NOTE 6 – DEPOSITS
The Company’s deposits are summarized below:
(dollars in thousands)
June 30, 2025
December 31, 2024
Noninterest-bearing deposits
$
1,034,387
$
1,046,405
Interest-bearing deposits:
Interest-bearing demand
1,097,086
1,099,061
Money market
831,292
820,825
Savings
568,971
566,533
Time
774,795
785,430
Total interest-bearing deposits
3,272,144
3,271,849
Total deposits
$
4,306,531
$
4,318,254
Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $247.6 million and $229.4 million as of June 30, 2025 and December 31, 2024, respectively. There were no brokered deposits as of June 30, 2025 and December 31, 2024.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $203.3 million and $202.2 million as of June 30, 2025 and December 31, 2024, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $452.3 million and $455.2 million as of June 30, 2025 and December 31, 2024, respectively.
The components of interest expense on deposits were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Interest-bearing demand
$
1,569
$
1,429
$
3,022
$
2,740
Money market
4,463
4,670
8,860
9,467
Savings
374
393
744
836
Time
6,429
7,117
13,148
13,042
Brokered
—
524
—
1,641
Total interest expense on deposits
$
12,835
$
14,133
$
25,774
$
27,726
NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.
Interest Rate Swaps Designated as Cash Flow Hedges
For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.
The interest rate swap agreement designated as a cash flow hedge was as follows:
June 30, 2025
December 31, 2024
(dollars in thousands)
Notional Amount
Fair Value
Notional Amount
Fair Value
Fair value recorded in other assets
$
—
$
—
$
7,000
$
38
The interest rate swap agreement matured in April 2025. The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income was as follows:
Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Interest Rate Swaps Not Designated as Hedging Instruments
The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.
The interest rate swap agreements not designated as hedging instruments were as follows:
June 30, 2025
December 31, 2024
(dollars in thousands)
Notional Amount
Fair Value
Notional Amount
Fair Value
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty
$
—
$
—
$
—
$
—
Interest rate swaps with a financial institution counterparty
75,419
3,427
79,416
5,515
Total fair value recorded in other assets
$
75,419
$
3,427
$
79,416
$
5,515
Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty
$
75,419
$
(3,427)
$
79,416
$
(5,515)
Interest rate swaps with a financial institution counterparty
—
—
—
—
Total fair value recorded in other liabilities
$
75,419
$
(3,427)
$
79,416
$
(5,515)
As of June 30, 2025, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035.
The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income was as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Risk Participation Agreements
We have entered into a risk participation agreement to share credit exposure with a counterparty in an interest rate swap agreement associated with a loan participation. Under the risk participation agreement, the Company sold a portion of its credit exposure, receiving an up-front fee, and will be required to make a payment to the counterparty if the loan customer defaults on its obligations. The risk participation agreement matures in 2035 and is summarized as follows:
(dollars in thousands)
June 30, 2025
December 31, 2024
Risk participation agreements sold
Number of risk participation agreements
1
1
Notional amount
$
5,268
$
5,268
Fair value
(10)
(10)
NOTE 8 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents the activity and accumulated balances for components of other comprehensive income (loss):
Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)
Available-for-Sale
Held-to-Maturity
Derivatives
Total
Three Months Ended June 30, 2025
Balance, March 31, 2025
$
(31,427)
$
(6,756)
$
(263)
$
(38,446)
Other comprehensive income (loss) before reclassifications
7,069
—
(1)
7,068
Reclassifications
—
492
(2)
490
Other comprehensive income (loss), before tax
7,069
492
(3)
7,558
Income tax expense (benefit)
1,978
139
(266)
1,851
Other comprehensive income, after tax
5,091
353
263
5,707
Balance, June 30, 2025
$
(26,336)
$
(6,403)
$
—
$
(32,739)
Three Months Ended June 30, 2024
Balance, March 31, 2024
$
(47,774)
$
(8,191)
$
(83)
$
(56,048)
Other comprehensive income before reclassifications
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)
Available-for-Sale
Held-to-Maturity
Derivatives
Total
Six Months Ended June 30, 2025
Balance, December 31, 2024
$
(39,408)
$
(7,119)
$
(238)
$
(46,765)
Other comprehensive income before reclassifications
18,154
—
—
18,154
Reclassifications
—
996
(38)
958
Other comprehensive income (loss), before tax
18,154
996
(38)
19,112
Income tax expense (benefit)
5,082
280
(276)
5,086
Other comprehensive income, after tax
13,072
716
238
14,026
Balance, June 30, 2025
$
(26,336)
$
(6,403)
$
—
$
(32,739)
Six Months Ended June 30, 2024
Balance, December 31, 2023
$
(48,579)
$
(8,549)
$
(35)
$
(57,163)
Other comprehensive income (loss) before reclassifications
(731)
—
78
(653)
Reclassifications
3,382
989
(250)
4,121
Other comprehensive income (loss), before tax
2,651
989
(172)
3,468
Income tax expense (benefit)
730
281
(50)
961
Other comprehensive income (loss), after tax
1,921
708
(122)
2,507
Balance, June 30, 2024
$
(46,658)
$
(7,841)
$
(157)
$
(54,656)
Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income.
Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.
Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 7 for additional information.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 9 – EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Numerator:
Net income
$
19,230
$
18,070
$
38,305
$
33,328
Denominator:
Weighted average common shares outstanding
31,510,759
31,579,457
31,547,669
31,621,205
Dilutive effect of outstanding restricted stock units
77,782
87,354
102,097
113,794
Weighted average common shares outstanding, including all dilutive potential shares
31,588,541
31,666,811
31,649,766
31,734,999
Earnings per share - basic
$
0.61
$
0.57
$
1.21
$
1.05
Earnings per share - diluted
$
0.61
$
0.57
$
1.21
$
1.05
NOTE 10 – STOCK-BASED COMPENSATION PLANS
The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.
The following is a summary of stock-based compensation expense (benefit):
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Restricted Stock Units
A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.
During the six months ended June 30, 2025 and 2024, the total grant date fair value of the restricted stock units granted was $1.1 million and $1.0 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the six months ended June 30, 2025 and 2024 was $1.4 million and $1.4 million, respectively.
The following is a summary of restricted stock unit activity:
Three Months Ended June 30,
2025
2024
Restricted Stock Units
Weighted Average Grant Date Fair Value
Restricted Stock Units
Weighted Average Grant Date Fair Value
Beginning balance
94,947
$
22.20
108,865
$
19.71
Granted
—
—
—
—
Vested
—
—
—
—
Forfeited
—
—
—
—
Ending balance
94,947
$
22.20
108,865
$
19.71
Six Months Ended June 30,
2025
2024
Restricted Stock Units
Weighted Average Grant Date Fair Value
Restricted Stock Units
Weighted Average Grant Date Fair Value
Beginning balance
108,603
$
19.71
128,159
$
19.56
Granted
43,397
25.00
51,246
19.06
Vested
(56,922)
19.59
(70,540)
18.96
Forfeited
(131)
19.06
—
—
Ending balance
94,947
$
22.20
108,865
$
19.71
As of June 30, 2025, unrecognized compensation cost related to the non-vested restricted stock units was $1.4 million. This cost is expected to be recognized over the weighted average remaining service period of 1.6 years.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Performance Restricted Stock Units
A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.
During the six months ended June 30, 2025 and 2024, the total fair value of the performance restricted stock units granted was $0.4 million and $0.4 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date. The total intrinsic value of performance restricted stock units that vested during the six months ended June 30, 2025 and 2024 was $1.1 million and $0.8 million, respectively.
The following is a summary of performance restricted stock unit activity:
Three Months Ended June 30,
2025
2024
Performance Restricted Stock Units
Weighted Average Grant Date Fair Value
Performance Restricted Stock Units
Weighted Average Grant Date Fair Value
Beginning balance
53,625
$
22.07
70,333
$
19.59
Granted
—
—
—
—
Adjustment for performance condition
—
—
—
—
Vested
—
—
—
—
Forfeited
—
—
—
—
Ending balance
53,625
$
22.07
70,333
$
19.59
Six Months Ended June 30,
2025
2024
Performance Restricted Stock Units
Weighted Average Grant Date Fair Value
Performance Restricted Stock Units
Weighted Average Grant Date Fair Value
Beginning balance
70,333
$
19.59
79,097
$
18.25
Granted
16,662
25.00
19,933
19.06
Adjustment for performance condition
11,864
18.66
14,349
15.53
Vested
(42,783)
18.66
(43,046)
15.53
Forfeited
(2,451)
16.27
—
—
Ending balance
53,625
$
22.07
70,333
$
19.59
As of June 30, 2025, unrecognized compensation cost related to non-vested performance restricted stock units was $0.5 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.1 years.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Stock Appreciation Rights
A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award.
The following is a summary of stock appreciation rights activity:
Three Months Ended June 30,
2025
2024
Stock Appreciation Rights Outstanding
Weighted Average Grant Date Assigned Value
Stock Appreciation Rights Outstanding
Weighted Average Grant Date Assigned Value
Beginning balance
67,320
$
16.32
73,440
$
16.32
Granted
—
—
—
—
Exercised
—
—
—
—
Expired
—
—
—
—
Forfeited
—
—
—
—
Ending balance
67,320
$
16.32
73,440
$
16.32
Six Months Ended June 30,
2025
2024
Stock Appreciation Rights
Weighted Average Grant Date Assigned Value
Stock Appreciation Rights
Weighted Average Grant Date Assigned Value
Beginning balance
73,440
$
16.32
73,440
$
16.32
Granted
—
—
—
—
Exercised
(6,120)
16.32
—
—
Expired
—
—
—
—
Forfeited
—
—
—
—
Ending balance
67,320
$
16.32
73,440
$
16.32
As of June 30, 2025, all stock appreciation rights were exercisable and had a weighted average remaining term of 4.2 years. There was no unrecognized compensation cost for stock appreciation rights as of June 30, 2025.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
As of June 30, 2025 and December 31, 2024, the liability recorded for outstanding stock appreciation rights was $0.6 million and $0.5 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price.
June 30, 2025
December 31, 2024
Risk-free interest rate
3.77
%
4.37
%
Expected volatility
29.18
%
30.95
%
Expected life (in years)
4.2
4.7
Expected dividend yield
3.33
%
3.47
%
NOTE 11 – REGULATORY CAPITAL
The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.
Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer is 2.5% of risk-weighted assets.
As of June 30, 2025 and December 31, 2024, the Company and the Bank each met all capital adequacy requirements to which they were subject.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 12 – SEGMENT INFORMATION
The Company’s operations consist of one reportable segment. The President and Chief Executive Officer is the designated chief operating decision maker. The chief operating decision maker uses consolidated financial information for purposes of allocating resources and assessing performance. The chief operating decision maker uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used to assess performance and in establishing compensation. Interest income from loans and investments as well as noninterest income from deposit customer activity, wealth management activities, and mortgage servicing generate the significant revenues. Interest expense, provisions for credit losses, and noninterest expenses such as compensation, occupancy, and data processing costs constitute the significant expenses. Significant revenues and expenses regularly provided to the chief operating decision maker are detailed in the consolidated statements of income.
NOTE 13 – FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.
Level 2 - Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.
The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Recurring Basis
The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.
Investment Securities
When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.
Mortgage Servicing Rights
The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.
Derivative Financial Instruments
Derivative financial instruments are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 by level within the fair value hierarchy:
June 30, 2025
(dollars in thousands)
Level 1 Inputs
Level 2 Inputs
Level 3 Inputs
Total Fair Value
Debt securities available-for-sale:
U.S. Treasury
$
—
$
93,977
$
—
$
93,977
U.S. government agency
—
49,234
—
49,234
Municipal
—
137,970
—
137,970
Mortgage-backed:
Agency residential
—
302,057
—
302,057
Agency commercial
—
133,675
—
133,675
Corporate
—
56,293
—
56,293
Equity securities with readily determinable fair values
3,346
—
—
3,346
Mortgage servicing rights
—
—
17,768
17,768
Derivative financial assets
—
3,427
—
3,427
Derivative financial liabilities
—
3,437
—
3,437
December 31, 2024
(dollars in thousands)
Level 1 Inputs
Level 2 Inputs
Level 3 Inputs
Total Fair Value
Debt securities available-for-sale:
U.S. Treasury
$
—
$
111,145
$
—
$
111,145
U.S. government agency
—
53,198
—
53,198
Municipal
—
130,679
—
130,679
Mortgage-backed:
Agency residential
—
227,368
—
227,368
Agency commercial
—
116,681
—
116,681
Corporate
—
58,978
—
58,978
Equity securities with readily determinable fair values
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):
June 30, 2025
Fair Value
Valuation Technique
Unobservable Inputs
Range (Weighted Average)
Mortgage servicing rights
$
17,768
Discounted cash flows
Constant pre-payment rates (CPR)
5.0% to 94.3% (8.1%)
Discount rate
9.0% to 65.5% (9.5%)
December 31, 2024
Fair Value
Valuation Technique
Unobservable Inputs
Range (Weighted Average)
Mortgage servicing rights
$
18,827
Discounted cash flows
Constant pre-payment rates (CPR)
0.8% to 94.3% (7.6%)
Discount rate
9.0% to 96.4% (10.4%)
Nonrecurring Basis
The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis.
Loans Held for Sale
Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.
Collateral-Dependent Loans
Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.
Bank Premises Held for Sale
Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of bank premises held for sale have been classified as Level 3.
Foreclosed Assets
Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of foreclosed assets have been classified as Level 3.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following tables summarize assets measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024 by level within the fair value hierarchy:
June 30, 2025
(dollars in thousands)
Level 1 Inputs
Level 2 Inputs
Level 3 Inputs
Total Fair Value
Loans held for sale
$
—
$
2,316
$
—
$
2,316
Collateral-dependent loans
—
—
29,692
29,692
Bank premises held for sale
—
—
140
140
Foreclosed assets
—
—
890
890
December 31, 2024
(dollars in thousands)
Level 1 Inputs
Level 2 Inputs
Level 3 Inputs
Total Fair Value
Loans held for sale
$
—
$
1,586
$
—
$
1,586
Collateral-dependent loans
—
—
27,717
27,717
Bank premises held for sale
—
—
317
317
Foreclosed assets
—
—
367
367
The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):
June 30, 2025
Fair Value
Valuation Technique
Unobservable Inputs
Range (Weighted Average)
Collateral-dependent loans
$
29,692
Appraisal of collateral
Appraisal adjustments
Not meaningful
Bank premises held for sale
140
Appraisal
Appraisal adjustments
7% (7%)
Foreclosed assets
890
Appraisal
Appraisal adjustments
7% (7%)
December 31, 2024
Fair Value
Valuation Technique
Unobservable Inputs
Range
(Weighted Average)
Collateral-dependent loans
$
27,717
Appraisal of collateral
Appraisal adjustments
Not meaningful
Bank premises held for sale
317
Appraisal
Appraisal adjustments
7% (7%)
Foreclosed assets
367
Appraisal
Appraisal adjustments
7% (7%)
Other Fair Value Methods
The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments.
Cash and Cash Equivalents
The carrying amounts of these financial instruments approximate their fair values.
Restricted Stock
The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Loans
The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.
Investments in Unconsolidated Subsidiaries
The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.
Time Deposits
Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.
Securities Sold Under Agreements to Repurchase
The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.
FHLB Advances
The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.
Subordinated Notes
The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.
Junior Subordinated Debentures
The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.
Accrued Interest
The carrying amounts of accrued interest approximate fair value.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
The following table provides summary information on the carrying amounts and estimated fair values of the Company’s other financial instruments:
(dollars in thousands)
Fair Value Hierarchy Level
June 30, 2025
December 31, 2024
Carrying Amount
Estimated Fair Value
Carrying Amount
Estimated Fair Value
Financial assets:
Cash and cash equivalents
Level 1
$
195,742
$
195,742
$
137,692
$
137,692
Debt securities held-to-maturity
Level 2
481,942
442,064
499,858
445,186
Restricted stock
Level 3
4,979
4,979
5,086
5,086
Loans, net
Level 3
3,306,552
3,251,793
3,424,102
3,418,318
Investments in unconsolidated subsidiaries
Level 3
1,614
1,614
1,614
1,614
Accrued interest receivable
Level 2
20,624
20,624
24,770
24,770
Financial liabilities:
Time deposits
Level 3
774,795
769,376
785,430
779,997
Securities sold under agreements to repurchase
Level 2
556
556
28,969
28,969
FHLB advances
Level 3
7,240
6,429
13,231
13,159
Subordinated notes
Level 3
39,593
39,500
39,553
38,316
Junior subordinated debentures
Level 3
52,879
46,492
52,849
47,942
Accrued interest payable
Level 2
4,619
4,619
5,096
5,096
The Company estimated the fair value of lending related commitments as described in Note 14 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods, and termination clauses provided in the agreements.
Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 14 – COMMITMENTS AND CONTINGENCIES
Financial Instruments
The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.
The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.
Such commitments and conditional obligations were as follows:
Contractual Amount
(dollars in thousands)
June 30, 2025
December 31, 2024
Commitments to extend credit
$
803,887
$
845,413
Standby letters of credit
31,032
18,329
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, equipment, and income-producing properties.
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.
Allowance for Credit Losses on Unfunded Lending-related Commitments
The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $3.1 million and $3.1 million as of June 30, 2025 and December 31, 2024, respectively.
Legal Contingencies
Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company's consolidated financial statements.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to HBT Financial, Inc. and its subsidiaries.
The following is management’s discussion and analysis of the financial condition as of June 30, 2025 (unaudited), as compared with December 31, 2024, and the results of operations for the three and six months ended June 30, 2025 and 2024 (unaudited). Management’s discussion and analysis should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025. Results of operations for the three and six months ended June 30, 2025 and 2024 are not necessarily indicative of results to be attained for the year ended December 31, 2025, or for any other period.
OVERVIEW
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. As of June 30, 2025, the Company had total assets of $5.0 billion, loans held for investment of $3.3 billion, and total deposits of $4.3 billion.
Market Area
As of June 30, 2025, our branch network included 66 full-service branch locations throughout Illinois and eastern Iowa. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
For the three months ended June 30, 2025, net income was $19.2 million, increasing by $1.2 million, or 6.4%, when compared to net income for the three months ended June 30, 2024. Notable changes include the following:
•A $2.6 million increase in net interest income, primarily attributable to lower funding costs, improved yields on debt securities, and higher average loan balances;
•A $0.8 million negative mortgage servicing rights fair value adjustment included in the second quarter of 2025 results compared to a $0.1 million negative mortgage servicing rights fair value adjustment included in the second quarter 2024 results;
•A $0.7 million increase in benefits expense, primarily driven by higher medical benefits costs; and
•A $0.2 million increase in income tax expense, primarily related to $0.3 million of additional tax expense related to the nonrecurring reversal of a stranded tax effect included in accumulated other comprehensive income, in connection with the maturity of a derivative designated as a cash flow hedge during the second quarter of 2025.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
For the six months ended June 30, 2025, net income was $38.3 million, increasing by $5.0 million, or 14.9%, when compared to net income for the six months ended June 30, 2024. Notable changes include the following:
•A $4.7 million increase in net interest income, primarily attributable to higher average loan balances, lower funding costs, and higher yields on debt securities;
•The absence of $3.4 million of losses on sales of securities during the first quarter of 2024;
•A $1.7 million increase in salaries and benefits expense, primarily driven by annual merit increases and higher medical benefits expense;
•A $1.1 million negative mortgage servicing rights fair value adjustment included in the 2025 results compared to a nearly flat mortgage servicing rights fair value adjustment included in the 2024 results;
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in 2024;
•A $1.4 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Net Interest Income
Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Net interest margin, which is expressed as the percentage of net interest income to average interest-earning assets, is utilized to measure and explain changes in net interest income.
The following tables set forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.
Junior subordinated debentures issued to capital trusts
52,871
927
7.03
52,812
944
7.18
Total interest-bearing liabilities
3,390,145
$
14,261
1.69
%
3,442,590
$
15,796
1.85
%
Noninterest-bearing deposits
1,044,539
1,043,614
Noninterest-bearing liabilities
29,486
39,806
Total liabilities
4,464,170
4,526,010
Stockholders' Equity
572,505
501,837
Total liabilities and stockholders’ equity
$
5,036,675
$
5,027,847
Net interest income/Net interest margin (1)
$
49,658
4.14
%
$
47,028
3.95
%
Tax-equivalent adjustment (2)
548
0.05
553
0.05
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$
50,206
4.19
%
$
47,581
4.00
%
Net interest rate spread (4)
3.64
%
3.43
%
Net interest-earning assets (5)
$
1,418,068
$
1,342,968
Ratio of interest-earning assets to interest-bearing liabilities
1.42
1.39
Cost of total deposits
1.19
%
1.31
%
Cost of funds
1.29
1.42
_________________________________________________
*Annualized measure.
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
Junior subordinated debentures issued to capital trusts
52,864
1,817
6.93
52,804
1,877
7.15
Total interest-bearing liabilities
3,393,053
$
28,691
1.71
%
3,439,285
$
31,069
1.82
%
Noninterest-bearing deposits
1,045,133
1,040,007
Noninterest-bearing liabilities
32,404
38,457
Total liabilities
4,470,590
4,517,749
Stockholders' Equity
563,659
497,906
Total liabilities and stockholders’ equity
$
5,034,249
$
5,015,655
Net interest income/Net interest margin (1)
$
98,366
4.13
%
$
93,716
3.95
%
Tax-equivalent adjustment (2)
1,093
0.05
1,128
0.04
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$
99,459
4.18
%
$
94,844
3.99
%
Net interest rate spread (4)
3.62
%
3.43
%
Net interest-earning assets (5)
$
1,410,092
$
1,336,220
Ratio of interest-earning assets to interest-bearing liabilities
1.42
1.39
Cost of total deposits
1.20
%
1.28
%
Cost of funds
1.30
1.39
_________________________________________________
*Annualized measure.
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
The following table sets forth the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate), and changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both volume and rate that cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.
Three Months Ended June 30, 2025
vs.
Three Months Ended June 30, 2024
Six Months Ended June 30, 2025
vs.
Six Months Ended June 30, 2024
Increase (Decrease) Due to
Total
Increase (Decrease) Due to
Total
(dollars in thousands)
Volume
Rate
Volume
Rate
Interest-earning assets:
Loans
$
692
$
405
$
1,097
$
2,105
$
509
$
2,614
Debt securities
174
881
1,055
115
1,544
1,659
Deposits with banks
(545)
(481)
(1,026)
(1,025)
(888)
(1,913)
Other
(1)
(30)
(31)
(5)
(83)
(88)
Total interest-earning assets
320
775
1,095
1,190
1,082
2,272
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
3
137
140
(6)
288
282
Money market
144
(351)
(207)
116
(723)
(607)
Savings
(13)
(6)
(19)
(44)
(48)
(92)
Time
156
(844)
(688)
1,193
(1,087)
106
Brokered
(524)
—
(524)
(1,641)
—
(1,641)
Total interest-bearing deposits
(234)
(1,064)
(1,298)
(382)
(1,570)
(1,952)
Securities sold under agreements to repurchase
(64)
(65)
(129)
(161)
(98)
(259)
Borrowings
(42)
(49)
(91)
(52)
(55)
(107)
Subordinated notes
1
(1)
—
2
(2)
—
Junior subordinated debentures issued to capital trusts
1
(18)
(17)
2
(62)
(60)
Total interest-bearing liabilities
(338)
(1,197)
(1,535)
(591)
(1,787)
(2,378)
Change in net interest income
$
658
$
1,972
$
2,630
$
1,781
$
2,869
$
4,650
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Net interest income for the three months ended June 30, 2025 was $49.7 million, increasing $2.6 million, or 5.6%, when compared to the three months ended June 30, 2024. The increase is primarily attributable to lower funding costs, improved yields on debt securities, and higher average loan balances. Additionally, a $0.5 million increase in nonaccrual interest recoveries and loan fees contributed to the increase in net interest income.
Net interest margin increased to 4.14% for the three months ended June 30, 2025, compared to 3.95% for the three months ended June 30, 2024. The increase was primarily attributable to lower funding costs, higher yields on interest-earning assets, and an increase in nonaccrual interest recoveries and loan fees. The increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 4 basis points of the increase in net interest margin. Additionally, the contribution of acquired loan discount accretion to net interest margin was 8 basis points for each of the three months ended June 30, 2025 and 2024.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Net interest income for the six months ended June 30, 2025 was $98.4 million, increasing $4.7 million, or 5.0%, when compared to the six months ended June 30, 2024. The increase is primarily attributable to higher average loan balances, a decrease in funding costs, and higher yields on debt securities. Also contributing was a $1.2 million increase in nonaccrual interest recoveries and loan fees.
Net interest margin increased to 4.13% for the six months ended June 30, 2025, compared to 3.95% for the six months ended June 30, 2024. The increase was primarily attributable to a decrease in funding costs and higher yields on interest-earning assets. The increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 5 basis points of the increase in net interest margin. Additionally, the contribution of acquired loan discount accretion to net interest margin was 9 basis points for each of the six months ended June 30, 2025 and 2024.
The quarterly net interest margins were as follows:
2025
2024
Three months ended:
March 31
4.12
%
3.94
%
June 30
4.14
3.95
September 30
—
3.98
December 31
—
3.96
In early 2024, our net interest margin was relatively stable, with increases in our loans and debt security yields being mostly offset by increases in funding costs. In September 2024, the Federal Open Market Committee ("FOMC") began lowering interest rates, with the target range for the federal funds rate decreasing by 100 basis points to a range of 4.25% to 4.50% by the end of 2024. These changes contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, driving our net interest margin higher in the first half of 2025.
Decreases in market interest rates, and potential future decreases, may put downward pressure on our net interest margin, as the negative impact on floating rate loans may not be fully offset by the positive impacts of maturing fixed rate loans and securities repricing at higher rates or potential decreases in deposit costs. Generally, we expect increases in market interest rates will increase our net interest income and net interest margin in future periods, while decreases in market interest rates may decrease our net interest income and net interest margin in future periods; however, this depends upon the timing and extent of both short-term and long-term interest rate fluctuations and may not always be the case.
Additionally, in September 2025 the Company's $40 million of subordinated notes become callable and the interest rate will become floating. If we choose to call the subordinated notes during the third quarter of 2025, we would expect to recognize a loss of $0.4 million for the unamortized issuance costs.
The following table sets forth the components of provision for credit losses for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
PROVISION FOR CREDIT LOSSES
Loans
$
595
$
677
$
1,091
$
1,237
Unfunded lending-related commitments
(69)
499
11
466
Total provision for credit losses
$
526
$
1,176
$
1,102
$
1,703
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
The Company recorded a provision for credit losses of $0.5 million during the three months ended June 30, 2025, compared to a $1.2 million provision during the three months ended June 30, 2024. The second quarter of 2025 provision for credit losses primarily reflects a $1.0 million increase in required reserves resulting from changes in economic forecasts; a $0.8 million increase in required reserves resulting from qualitative factor changes; a $1.2 million decrease in required reserves driven by decreased loan balances and changes within the loan portfolio; and a $0.1 million decrease in specific reserves.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
The Company recorded a provision for credit losses of $1.1 million for the six months ended June 30, 2025, compared to a $1.7 million provision during the six months ended June 30, 2024. The 2025 provision for credit losses primarily reflects a $1.6 million increase in required reserves resulting from changes in qualitative factors; a $1.0 million increase in required reserves resulting from changes in economic forecasts; a $1.1 million decrease in required reserves driven by changes within the portfolio; and a $0.4 million decrease in specific reserves.
Credit losses are highly dependent on current and forecast economic conditions. Potential deterioration of economic conditions may lead to higher credit losses and adversely impact our financial condition and results of operations. The economic forecasts utilized in estimating the allowance for credit losses on loans and unfunded lending-related commitments include the unemployment rate and changes in GDP as macroeconomic variables, although other economic metrics are considered on a qualitative basis.
The following table sets forth the major categories of noninterest income for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
$ Change
% Change
2025
2024
$ Change
% Change
Card income
$
2,797
$
2,885
$
(88)
(3.1)
%
$
5,345
$
5,501
$
(156)
(2.8)
%
Wealth management fees
2,826
2,623
203
7.7
5,667
5,170
497
9.6
Service charges on deposit accounts
1,915
1,902
13
0.7
3,859
3,771
88
2.3
Mortgage servicing
1,042
1,111
(69)
(6.2)
2,032
2,166
(134)
(6.2)
Mortgage servicing rights fair value adjustment
(751)
(97)
(654)
NM
(1,059)
(17)
(1,042)
NM
Gains on sale of mortgage loans
459
443
16
3.6
711
741
(30)
(4.0)
Realized gains (losses) on sales of securities
—
—
—
NM
—
(3,382)
3,382
NM
Unrealized gains (losses) on equity securities
23
(96)
119
NM
31
(112)
143
NM
Gains (losses) on foreclosed assets
14
(28)
42
NM
27
59
(32)
(54.2)
Gains (losses) on other assets
(128)
—
(128)
NM
(74)
(635)
561
NM
Income on bank owned life insurance
167
166
1
0.6
331
330
1
0.3
Other noninterest income
776
701
75
10.7
1,576
1,644
(68)
(4.1)
Total
$
9,140
$
9,610
$
(470)
(4.9)
%
$
18,446
$
15,236
$
3,210
21.1
%
_________________________________________________
NM Not meaningful.
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Total noninterest income for the three months ended June 30, 2025, was $9.1 million, a decrease of $0.5 million, or 4.9%, from the three months ended June 30, 2024. Notable changes in noninterest income include the following:
•A $0.8 million negative mortgage servicing rights fair value adjustment included the second quarter of 2025 results, primarily reflecting changes in the prepayment and future interest rate assumptions utilized in the valuations, compared to a $0.1 million negative mortgage servicing rights fair value adjustment included in the second quarter 2024 results;
•A $0.2 million increase in wealth management fees, driven by higher values of assets under management and an increase in farm management income; and
•A $0.1 million impairment loss on bank premises held for sale recognized during the second quarter of 2025 which was not present in the second quarter of 2024 results.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Total noninterest income for the six months ended June 30, 2025, was $18.4 million, an increase of $3.2 million, or 21.1%, from the six months ended June 30, 2024. Notable changes in noninterest income include the following:
•The absence of $3.4 million of losses on sales of securities during the first quarter of 2024;
•A $1.1 million negative mortgage servicing rights fair value adjustment included in the 2025 results compared to a nearly flat mortgage servicing rights fair value adjustment included in the 2024 results;
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the 2024 results; and
•A $0.5 million increase in wealth management fees, driven primarily by higher assets under management and an increase in farm management income.
The following table sets forth the major categories of noninterest expense for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
$ Change
% Change
2025
2024
$ Change
% Change
Salaries
$
16,452
$
16,364
$
88
0.5
%
$
33,505
$
33,021
$
484
1.5
%
Employee benefits
3,580
2,860
720
25.2
6,865
5,665
1,200
21.2
Occupancy of bank premises
2,471
2,243
228
10.2
5,096
4,825
271
5.6
Furniture and equipment
575
548
27
4.9
1,020
1,098
(78)
(7.1)
Data processing
2,687
2,606
81
3.1
5,404
5,531
(127)
(2.3)
Marketing and customer relations
1,020
996
24
2.4
2,164
1,992
172
8.6
Amortization of intangible assets
694
710
(16)
(2.3)
1,389
1,420
(31)
(2.2)
FDIC insurance
551
565
(14)
(2.5)
1,113
1,125
(12)
(1.1)
Loan collection and servicing
360
475
(115)
(24.2)
743
927
(184)
(19.8)
Foreclosed assets
67
10
57
570.0
72
59
13
22.0
Other noninterest expense
3,457
3,132
325
10.4
6,478
6,114
364
6.0
Total
$
31,914
$
30,509
$
1,405
4.6
%
$
63,849
$
61,777
$
2,072
3.4
%
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Total noninterest expense for the three months ended June 30, 2025, was $31.9 million, an increase of $1.4 million, or 4.6%, from the three months ended June 30, 2024. Notable changes in noninterest expense include the following:
•A $0.7 million increase in benefits expense, primarily driven by higher medical benefits costs;
•A $0.3 million increase in other noninterest expense; and
•A $0.2 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Total noninterest expense for the six months ended June 30, 2025, was $63.8 million, an increase of $2.1 million, or 3.4%, from the six months ended June 30, 2024. Notable changes in noninterest expense include the following:
•A $1.2 million increase in employee benefits expense, primarily driven by higher medical benefits cost;
•A $0.5 million increase in salaries expense, primarily driven by annual merit increases; and
•A $0.3 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades.
During the three months ended June 30, 2025 and 2024, we recorded income tax expense of $7.1 million, or an effective tax rate of 27.0%, and $6.9 million, or an effective tax rate of 27.6%, respectively. During the six months ended June 30, 2025 and 2024, we recorded income tax expense of $13.6 million, or an effective tax rate of 26.1%, and $12.1 million, or an effective tax rate of 26.7%, respectively. The higher effective tax rate during 2024 was primarily attributable to an additional $0.5 million of tax expense for a deferred tax asset write-down, recognized during the second quarter of 2024, as a result of an Illinois tax change. Additionally, $0.3 million of additional tax expense was recognized during the second quarter of 2025, related to the nonrecurring reversal of a stranded tax effect included in accumulated other comprehensive income, in connection with the maturity of a derivative designated as a cash flow hedge.
Notable changes in our consolidated balance sheet include the following:
•A $117.9 million decrease in loans, primarily attributable to paydowns from property sales;
•A $57.2 million increase in debt securities, primarily attributable to a reinvestment of cash flows from loan paydowns and an $18.2 million increase in the fair value of debt securities available-for-sale;
•An $11.7 million decrease in deposits, primarily attributable to lower balances maintained in existing retail accounts; and
•A transition of the vast majority of repurchase agreement account balances to reciprocal interest-bearing demand deposit accounts.
Loan Portfolio
The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.
June 30, 2025
December 31, 2024
(dollars in thousands)
Balance
Percent
Balance
Percent
Commercial and industrial
$
419,430
12.5
%
$
428,389
12.4
%
Commercial real estate - owner occupied
317,475
9.5
322,316
9.3
Commercial real estate - non-owner occupied
907,073
27.1
899,565
25.9
Construction and land development
310,252
9.3
374,657
10.8
Multi-family
453,812
13.5
431,524
12.4
One-to-four family residential
451,197
13.5
463,968
13.4
Agricultural and farmland
271,644
8.1
293,375
8.5
Municipal, consumer, and other
217,328
6.5
252,352
7.3
Loans, before allowance for credit losses
3,348,211
100.0
%
3,466,146
100.0
%
Allowance for credit losses
(41,659)
(42,044)
Loans, net of allowance for credit losses
$
3,306,552
$
3,424,102
Loans, before allowance for credit losses were $3.35 billion at June 30, 2025, a decrease of $117.9 million, or 3.4%, from December 31, 2024. Notable changes include the following:
•A reduction due to elevated paydowns from property sales and refinances across several segments;
•Transfers of completed construction projects out of the construction and land development segment drove increases in the multi-family and commercial real estate – non-owner occupied segments; and
•Partially offsetting the transfers out of the construction and land development segment were draws on existing loans and new originations to existing customers.
Commercial real estate – owner occupied loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The commercial real estate – owner occupied portfolio composition, segmented by the owner’s business classification, as of June 30, 2025 was as follows:
June 30, 2025
(dollars in thousands)
Balance
Substandard Risk Rating
Manufacturing
$
49,238
$
329
Auto repair and dealers
35,525
—
Health care and social assistance
32,690
1,384
Accommodation and food services
28,575
3,773
Retail trade
25,794
—
Real estate, rental, and leasing
24,929
25
Grain elevators
24,003
1,650
Construction
16,590
1,367
Wholesale trade
13,787
—
Other services (except public administration)
11,591
252
Arts, entertainment, and recreation
11,299
72
Administrative and support services
10,588
—
Agriculture, forestry, fishing, and hunting
6,507
—
Education services
6,267
1,156
Professional, scientific, and technical services
6,199
—
Finance and insurance
3,626
—
Other
10,267
—
Total
$
317,475
$
10,008
Commercial real estate – non-owner occupied loans are primarily made based on projected cash flows from the rental or sale of the underlying collateral. The commercial real estate – non-owner occupied portfolio composition, segmented by the property type, as of June 30, 2025 was as follows:
June 30, 2025
(dollars in thousands)
Balance
Substandard Risk Rating
Weighted Average LTV(1)
Warehouse and manufacturing
$
188,842
$
—
55
%
Retail
180,082
7,454
55
Office
174,582
32
57
Senior Living
106,182
12,770
54
Hotel
83,591
7,444
56
Mixed use (commercial and residential)
66,883
—
63
Medical office
32,541
—
57
Gas station
24,415
—
61
Auto repair and dealers
19,389
—
54
Restaurant and bar
12,371
—
59
Other
18,195
—
56
Total
$
907,073
$
27,700
56
%
_________________________________________________
(1) Weighted average LTV is based on the most recent appraisals available, which are generally obtained at the time of origination.
Multi-family loans totaled $453.8 million as of June 30, 2025, and are primarily made based on projected cash flows from the rental or sale of the underlying collateral. As of June 30, 2025, multi-family loans had a weighted average LTV of 57%, based on the most recent appraisals available, which are generally obtained at the time of origination.
Construction and land development loans totaled $310.3 million as of June 30, 2025. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or owner occupied upon completion. Construction and land development loans are primarily based on projected cash flows from the rental or sale of the underlying collateral, or based on the identified cash flows of the borrower.
Management’s disciplined approach to credit risk management is exercised through portfolio diversification, robust underwriting policies, and routine loan monitoring practices in order to identify and mitigate any credit weakness as early as possible. Management continually monitors and evaluates commercial real estate concentrations by property class, industry, and relative to the Bank’s regulatory capital to remain in line with board-established limits and adapt to changing industry conditions. A centralized credit underwriting group, independent of the originating lender, evaluates a vast majority of the commercial exposures over $750 thousand annually, if not more frequently, through a standardized credit review process to ensure uniform application of policies and procedures as well as analyze credit performance. All loans require appropriate internal approval, with a centralized credit approval group reviewing all exposures over $500 thousand. Additionally, a robust internal review process reviews more than 45% of loan commitments on a rolling 24 month basis that is in addition to an annual third-party review of a sample of the portfolio.
For commercial real estate – non-owner occupied and multi-family loans over $1 million, we evaluate, on a quarterly basis, the impact of current interest rates on the underlying cash flows of the properties securing these loans, based on the most recent cash flow data available. Individual credits with a maturity scheduled within the next five quarters that are presenting stress under current renewal terms are identified, so that ample time is available to develop solutions to manage credit risk. This testing is completed in addition to the various sensitivity testing completed at the initial extension of credit.
The following table summarizes the scheduled maturities of the loan portfolio as of June 30, 2025. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in one year or less.
(dollars in thousands)
1 Year or Less
After 1 Year Through 5 Years
After 5 Years Through 15 Years
After 15 Years
Total
Commercial and industrial
$
227,974
$
132,026
$
59,430
$
—
$
419,430
Commercial real estate - owner occupied
49,523
175,779
73,555
18,618
317,475
Commercial real estate - non-owner occupied
213,526
573,930
105,936
13,681
907,073
Construction and land development
151,788
140,438
17,877
149
310,252
Multi-family
85,467
326,518
40,542
1,285
453,812
One-to-four family residential
90,778
148,175
85,872
126,372
451,197
Agricultural and farmland
111,614
121,167
33,758
5,105
271,644
Municipal, consumer, and other
97,264
22,281
65,351
32,432
217,328
Total
$
1,027,934
$
1,640,314
$
482,321
$
197,642
$
3,348,211
The following table summarizes loans maturing after one year, segregated into variable and fixed interest rates.
Our nonperforming loans and nonperforming assets were as follows:
(dollars in thousands)
June 30, 2025
December 31, 2024
NONPERFORMING ASSETS
Nonaccrual
$
5,615
$
7,652
Past due 90 days or more, still accruing
9
4
Total nonperforming loans
5,624
7,656
Foreclosed assets
890
367
Total nonperforming assets
$
6,514
$
8,023
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government
$
1,878
$
1,573
Allowance for credit losses
$
41,659
$
42,044
Loans, before allowance for credit losses
3,348,211
3,466,146
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses
1.24
%
1.21
%
Allowance for credit losses to nonaccrual loans
741.92
549.45
Allowance for credit losses to nonperforming loans
740.74
549.16
Nonaccrual loans to loans, before allowance for credit losses
0.17
0.22
Nonperforming loans to loans, before allowance for credit losses
0.17
0.22
Nonperforming assets to total assets
0.13
0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets
0.19
0.23
Total nonperforming assets were $6.5 million at June 30, 2025, a decrease of 18.8%, when compared to $8.0 million at December 31, 2024. Additionally, of the $5.6 million of nonperforming loans held as of June 30, 2025, $1.9 million are either wholly or partially guaranteed by the U.S. Government. The $1.5 million decrease in nonperforming assets from December 31, 2024 was primarily attributable to the pay-off of a $1.6 million nonaccrual commercial real estate – non-owner occupied credit with a decrease in the one-to-four family residential segment being mostly offset by an increase in the commercial and industrial segment.
Risk Classification of Loans
Our risk classifications of loans were as follows:
(dollars in thousands)
June 30, 2025
December 31, 2024
Pass
$
3,144,615
$
3,264,396
Pass-watch
100,036
83,947
Special mention
6,403
46,590
Substandard
97,157
71,213
Total
$
3,348,211
$
3,466,146
Loans rated pass-watch or worse were relatively stable as of June 30, 2025, increasing $1.8 million, or 0.9%, from December 31, 2024. Additionally, a $12.1 million construction and land development credit paid off in July 2025 which was rated substandard as of June 30, 2025 and special mention as of December 31, 2024.
The following table summarizes net charge-offs (recoveries) to average loans by loan category.
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2025
2024
2025
2024
Net charge-offs (recoveries)
Commercial and industrial
$
613
$
469
$
939
$
458
Commercial real estate - owner occupied
(31)
(2)
(32)
(4)
Commercial real estate - non-owner occupied
—
(15)
—
(257)
Construction and land development
(1)
(1)
4
(2)
Multi-family
43
188
43
188
One-to-four family residential
389
(14)
430
(77)
Agricultural and farmland
(9)
(1)
(47)
(8)
Municipal, consumer, and other
43
62
139
181
Total
$
1,047
$
686
$
1,476
$
479
Average loans
Commercial and industrial
$
421,471
$
401,687
$
433,027
$
406,536
Commercial real estate - owner occupied
322,154
294,729
322,824
296,036
Commercial real estate - non-owner occupied
901,263
886,825
895,894
884,765
Construction and land development
369,084
353,568
368,788
360,240
Multi-family
421,653
429,688
427,322
422,002
One-to-four family residential
454,299
487,872
457,536
489,821
Agricultural and farmland
281,048
285,465
279,559
281,452
Municipal, consumer, and other
246,610
234,224
254,174
231,788
Total
$
3,417,582
$
3,374,058
$
3,439,124
$
3,372,640
Charge-offs (recoveries) to average loans *
Commercial and industrial
0.58
%
0.47
%
0.44
%
0.23
%
Commercial real estate - owner occupied
(0.04)
—
(0.02)
—
Commercial real estate - non-owner occupied
—
(0.01)
—
(0.06)
Construction and land development
—
—
—
—
Multi-family
0.04
0.18
0.02
0.09
One-to-four family residential
0.34
(0.01)
0.19
(0.03)
Agricultural and farmland
(0.01)
—
(0.03)
(0.01)
Municipal, consumer, and other
0.07
0.11
0.11
0.16
Total
0.12
%
0.08
%
0.09
%
0.03
%
_________________________________________________
* Annualized measure.
The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of credit losses, we also recognize that substantial federal economic stimulus during the COVID-19 pandemic and the relatively stable economic conditions after the pandemic have also contributed to reduced credit losses.
Additionally, equipment finance loans which were purchased as part of a pool of loans during 2023 contributed to heightened net charge-offs within the commercial and industrial segment.
The Company’s investment policy emphasizes safety of the principal, liquidity needs, expected returns, cash flow targets, and consistency with our interest rate risk management strategy. The composition and maturities of the debt securities portfolio as of June 30, 2025, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Security yields have not been adjusted to a tax-equivalent basis.
Management continues to focus on growing deposits through the Company’s relationship-driven banking philosophy and community-focused marketing programs.
The following table sets forth the distribution of average deposits, by account type:
Three Months Ended June 30,
Percent Change in Average Balance
2025
2024
(dollars in thousands)
Average Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing
$
1,044,539
24.1
%
—
%
$
1,043,614
24.0
%
—
%
0.1
%
Interest-bearing demand
1,125,787
26.0
0.56
1,123,592
25.8
0.51
0.2
Money market
813,531
18.8
2.20
788,744
18.1
2.38
3.1
Savings
569,193
13.1
0.26
592,312
13.6
0.27
(3.9)
Time
780,536
18.0
3.30
763,507
17.6
3.75
2.2
Brokered
—
—
—
38,213
0.9
5.51
(100.0)
Total deposits
$
4,333,586
100.0
%
1.19
%
$
4,349,982
100.0
%
1.31
%
(0.4)
%
Six Months Ended June 30,
Percent Change in Average Balance
2025
2024
(dollars in thousands)
Average Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing
$
1,045,133
24.1
%
—
%
$
1,040,007
24.0
%
—
%
0.5
%
Interest-bearing demand
1,123,212
25.9
0.54
1,125,638
25.9
0.49
(0.2)
Money market
810,645
18.7
2.20
800,714
18.4
2.38
1.2
Savings
569,343
13.2
0.26
601,768
13.9
0.28
(5.4)
Time
782,307
18.1
3.39
714,003
16.4
3.67
9.6
Brokered
—
—
—
60,181
1.4
5.48
(100.0)
Total deposits
$
4,330,640
100.0
%
1.20
%
$
4,342,311
100.0
%
1.28
%
(0.3)
%
_________________________________________________
*Annualized measure.
Average deposit balances have been relatively stable in 2025 compared to 2024, with growth in money market and time deposits being offset by decreases in savings and the planned repayment of brokered time deposits at scheduled maturities. Additionally, the vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand accounts during the first quarter of 2025.
The following table sets forth time deposits by remaining maturity as of June 30, 2025:
(dollars in thousands)
3 Months or Less
Over 3 through 6 Months
Over 6 through 12 Months
Over 12 Months
Total
Time deposits:
Amounts less than $100,000
$
121,377
$
94,565
$
76,559
$
30,036
$
322,537
Amounts of $100,000 or more but less than $250,000
108,474
76,054
51,084
13,312
248,924
Amounts of $250,000 or more
46,009
39,717
112,149
5,459
203,334
Total time deposits
$
275,860
$
210,336
$
239,792
$
48,807
$
774,795
As of June 30, 2025 and December 31, 2024, the Bank’s uninsured deposits were estimated to be $953.4 million and $949.4 million, respectively.
The overall objective of bank liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. The Bank manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.
The Bank continuously monitors its liquidity positions to ensure that assets and liabilities are managed in a manner that will meet all of our short-term and long-term cash requirements. The Bank manages its liquidity position to meet our daily cash flow needs, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives. The Bank also monitors liquidity requirements in light of interest rate trends, changes in the economy, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.
As part of the Bank’s liquidity management strategy, the Bank is also focused on minimizing costs of liquidity and attempts to decrease these costs by promoting noninterest-bearing and low-cost deposits. While the Bank does not control the types of deposit instruments our clients choose, those choices can be influenced with the rates and the deposit specials offered.
Our on-balance sheet sources of liquidity included cash and cash equivalents as well as unpledged securities which may be sold or pledged as collateral to meet liquidity needs. As of June 30, 2025 and December 31, 2024, our on-balance sheet sources of liquidity included the following:
(dollars in thousands)
June 30, 2025
December 31, 2024
Cash and cash equivalents
$
195,742
$
137,692
Fair value of unpledged securities
743,297
705,106
Total cash and unpledged securities
$
939,039
$
842,798
Additional sources of liquidity include borrowings from the FHLB, the Federal Reserve discount window, and federal fund lines of credit. Interest is charged on outstanding borrowings at the prevailing market rate. As of June 30, 2025, our current borrowings and additional available borrowing capacity were as follows:
June 30, 2025
(dollars in thousands)
Current Balance
Additional Available Capacity
FHLB
$
7,240
$
1,023,931
Federal Reserve
—
107,118
Federal funds lines of credit
—
80,000
Total
$
7,240
$
1,211,049
Furthermore, the Bank could utilize brokered deposits as an additional source of liquidity, as needed.
As of June 30, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Bank. As of June 30, 2025, the Bank had no material commitments for capital expenditures.
The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of June 30, 2025, the Holding Company had cash and cash equivalents of $35.3 million.
The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. Dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Management believes that such limitations will not impact the Holding Company’s ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended June 30, 2025 and 2024, the Bank paid $30.0 million and $10.0 million in dividends to the Holding Company, respectively. During the six months ended June 30, 2025 and 2024, the Bank paid $37.5 million and $18.0 million in dividends to the Holding Company, respectively.
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on the subordinated notes and junior subordinated debentures, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended June 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $1.4 million and $1.4 million, respectively, and other operating expenses of $1.1 million and $1.0 million, respectively. During the six months ended June 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $2.8 million and $2.8 million, respectively, and other operating expenses of $2.1 million and $2.1 million, respectively.
Additionally, the Holding Company paid $6.6 million and $6.0 million of dividends to stockholders during the three months ended June 30, 2025 and 2024, respectively, and paid $13.3 million and $12.1 million of dividends to stockholders during the six months ended June 30, 2025 and 2024, respectively.
As of June 30, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Holding Company’s liquidity.
As of June 30, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Holding Company. As of June 30, 2025, the Holding Company had no material commitments for capital expenditures.
The overall objectives of capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. The Company seeks to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.
Regulatory Capital Requirements
The Company and Bank are each subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank.
In addition to meeting minimum capital requirements, the Company and the Bank must also maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer requirement is 2.5% of risk-weighted assets.
As of June 30, 2025 and December 31, 2024, the Company and the Bank met all capital adequacy requirements to which they were subject. As of those dates, the Bank was “well capitalized” under the regulatory prompt corrective action provisions.
The following table sets forth actual capital ratios of the Company and the Bank as of the dates indicated, as well as the minimum ratios for capital adequacy purposes with the capital conservation buffer, and the minimum ratios to be well capitalized under regulatory prompt corrective action provisions.
June 30, 2025
December 31, 2024
For Capital
Adequacy Purposes
With Capital
Conservation Buffer (1)
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions (2)
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)
17.74
%
16.51
%
10.50
%
N/A
Tier 1 Capital (to Risk Weighted Assets)
15.60
14.50
8.50
N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)
14.26
13.21
7.00
N/A
Tier 1 Capital (to Average Assets)
11.86
11.51
4.00
N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)
16.84
%
16.11
%
10.50
%
10.00
%
Tier 1 Capital (to Risk Weighted Assets)
15.74
15.10
8.50
8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)
15.74
15.10
7.00
6.50
Tier 1 Capital (to Average Assets)
11.97
11.98
4.00
5.00
_________________________________________________
(1)The Tier 1 capital to average assets ratio (known as the “leverage ratio”) is not impacted by the capital conservation buffer.
(2)The prompt corrective action provisions are not applicable to bank holding companies.
N/A Not applicable.
As of June 30, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Company’s capital resources.
Cash Dividends
During 2024, the Company paid quarterly cash dividends of $0.19 per share. In January 2025, the Company announced an increase of $0.02 and paid a $0.21 per share dividend during the first and second quarters of 2025.
Under the Company's stock repurchase program, the Company repurchased 135,997 shares of its common stock at a weighted average price of $21.30 during the three months ended June 30, 2025. The Company’s Board of Directors have authorized the repurchase of up to $15.0 million of its common stock under its stock repurchase program in effect until January 1, 2026. As of June 30, 2025, the Company had $12.1 million remaining under the current stock repurchase authorization.
OFF-BALANCE SHEET ARRANGEMENTS
As a financial services provider, the Bank routinely is a party to various financial instruments with off-balance sheet risks, such as commitments to extend credit, standby letters of credit, unused lines of credit, commitments to sell loans, and interest rate swaps. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process afforded to loans originated by the Bank. For additional information, see “Note 14 – Commitments and Contingencies” to the consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES
Critical accounting estimates are those that are critical to the portrayal and understanding of the Company’s financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company’s critical accounting estimates. The following accounting estimate could be deemed critical:
Allowance for Credit Losses
The allowance for credit losses reflects an estimate of lifetime expected credit losses. Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is established through a provision for credit losses which is charged to expense. Additions to the allowance for credit losses are expected to maintain the adequacy of the total allowance for credit losses. Loan losses are charged off against the allowance for credit losses when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance for credit losses.
Management uses the discounted cash flow method to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. The Company uses regression analysis of historical internal and peer data to determine which macroeconomic variables are most closely correlated with credit losses, such as the unemployment rate and changes in GDP. Management leverages economic projections from a reputable third party to form its economic forecasts with a reversion to historical averages for periods beyond a reasonable and supportable forecast period.
Nonaccrual loans and loans which do not share risk characteristics with other loans in the pool are individually evaluated to determine expected credit losses.
The allowance for credit losses on unfunded commitments is estimated in the same manner as the associated loans, adjusted for anticipated funding rate.
This Quarterly Report on Form 10-Q contains certain financial information determined by methods other than those in accordance with GAAP. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures below.
Non-GAAP Financial Measure
Definition
How the Measure Provides Useful Information to Investors
Adjusted Net Income
•Net income, with the following adjustments:
-excludes acquisition expenses, including the day 2 provision for credit losses on non-PCD loans and unfunded commitments,
-excludes branch closure expenses,
-excludes gains (losses) on closed branch premises,
-excludes realized gains (losses) on sales of securities,
-excludes mortgage servicing rights fair value adjustment, and
-the income tax effect of these pre-tax adjustments.
•Enhances comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects.
•We also sometimes refer to ratios that include Adjusted Net Income, such as:
-Adjusted Return on Average Assets, which is Adjusted Net Income divided by average assets.
-Adjusted Return on Average Equity, which is Adjusted Net Income divided by average equity.
-Adjusted Earnings Per Share – Basic, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding.
-Adjusted Earnings Per Share – Diluted, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding, including all dilutive potential shares.
•Adjusted Return on Average Assets is a performance measure utilized in determining executive compensation.
Pre-Provision Net Revenue
•Net interest income, plus noninterest income, less noninterest expense.
•Provides investors with information regarding profitability excluding provision for credit losses and income tax expense, which may fluctuate from period to period.
•We also sometimes refer to measures that include Pre-Provision Net Revenue, such as:
-Adjusted Pre-Provision Net Revenue which reflects the adjustments considered in Adjusted Net Income, as necessary.
-Pre-Provision Net Revenue Less Charge-offs (Recoveries).
-Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Pre-Provision Net Revenue Less Net Charge-Offs (Recoveries) is a performance measure utilized in determining executive compensation.
How the Measure Provides Useful Information to Investors
Net Interest Income (Tax-Equivalent Basis)
•Net interest income adjusted for the tax-favored status of tax-exempt loans and securities. (1)
•We believe the tax-equivalent basis is the preferred industry measurement of net interest income.
•Enhances comparability of net interest income arising from taxable and tax-exempt sources.
•We also sometimes refer to Net Interest Margin (Tax-Equivalent Basis), which is Net Interest Income (Tax-Equivalent Basis) divided by average interest-earning assets.
Efficiency Ratio (Tax-Equivalent Basis)
•Noninterest expense less amortization of intangible assets divided by the sum of net interest income (tax-equivalent basis) and noninterest income. (1)
•Provides a measure of productivity in the banking industry.
•Calculated to measure the cost of generating one dollar of revenue. That is, the ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.
•We also sometimes refer to Adjusted Efficiency Ratio (Tax-Equivalent Basis) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Efficiency Ratio (Tax-Equivalent Basis) is a performance measure utilized in determining executive compensation.
Ratio of Tangible Common Equity to Tangible Assets
•Tangible Common Equity is total stockholders’ equity less goodwill and other intangible assets.
•Tangible Assets is total assets less goodwill and other intangible assets.
•Generally used by investors, our management, and banking regulators to evaluate capital adequacy.
•Facilitates comparison of our earnings with the earnings of other banking organization with varying amounts of goodwill or intangible assets.
•We also sometimes refer to ratios that include Tangible Common Equity, such as:
-Tangible Book Value Per Share, which is Tangible Common Equity divided by shares of common stock outstanding.
-Return on Average Tangible Common Equity, which is net income divided by average Tangible Common Equity.
-Adjusted Return on Average Tangible Common Equity, which is Adjusted Net Income divided by average Tangible Common Equity.
Core Deposits
•Total deposits, excluding:
-Time deposits of $250,000 or more, and
-Brokered deposits
•Provides investors with information regarding the stability of the Company’s sources of funds.
•We also sometimes refer to the ratio of Core Deposits to total deposits.
_________________________________________________
(1)Tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Managing risk is an essential part of successfully managing a financial institution. Our most prominent risk exposures are interest rate risk and credit risk.
Interest Rate Risk
Our most significant form of market risk is interest rate risk inherent in the normal course of lending and deposit-taking activities. Interest rate risk is the potential reduction of net interest income as a result of changes in interest rates. Management believes that our ability to successfully respond to changes in interest rates will have a significant impact on our financial results. To that end, management actively monitors and manages our interest rate exposure.
The Company’s Asset/Liability Management Committee (“ALCO”), which is authorized by the Company’s board of directors, monitors our interest rate sensitivity and makes decisions relating to that process. The ALCO’s goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a rising or declining interest rate environment. Profitability is affected by fluctuations in interest rates. A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis.
We monitor the impact of changes in interest rates on our net interest income and economic value of equity (“EVE”) using rate shock analysis. Net interest income simulations measure the short-term earnings exposure from changes in market rates of interest in a rigorous and explicit fashion. Our current financial position is combined with assumptions regarding future business to calculate net interest income under varying hypothetical rate scenarios. EVE measures our long-term earnings exposure from changes in market rates of interest. EVE is defined as the present value of assets minus the present value of liabilities at a point in time. A decrease in EVE due to a specified rate change indicates a decline in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet.
The base and shock scenarios in the rate shock analysis assume a static balance sheet, static interest rates, no changes to product mix shift, and cash flow reinvestment at current market interest rates. We also make assumptions for our deposit betas and asset prepayments, based on historical experience.
Deposit Betas
Deposit pricing changes are primarily driven by changes in the federal funds rate, with the relationship between deposit rates and federal funds rate defined as deposit beta. We define cumulative deposit beta as the change in our quarterly cost of deposits divided by the change in the upper level of the stated federal funds rate range over a specified period. During the most recent rising rate cycle, which was from the fourth quarter of 2021 through the second quarter of 2024, our cumulative deposit beta was 23.6%. Since the start of the current falling rate cycle, which began with the third quarter of 2024, our cumulative deposit beta has been 17.2%.
Asset Prepayments
We include prepayment assumptions for both our loan and securities portfolios, based on historical experience. Generally, mortgage portfolio prepayments increase in lower rate environments, while commercial and consumer portfolios have historically remained more consistent throughout rate cycles.
The following table sets forth the estimated impact on our EVE and net interest income of immediate and parallel changes in interest rates at the specified levels.
Change in Interest Rates (basis points)
Estimated Increase (Decrease) in EVE
Increase (Decrease) in Estimated Net Interest Income
Year 1
Year 2
June 30, 2025
+400
26.5
%
5.2
%
12.5
%
+300
22.2
4.4
10.2
+200
16.3
3.6
7.7
+100
9.0
2.4
4.7
-100
(10.9)
(4.4)
(6.8)
-200
(22.4)
(5.4)
(10.7)
-300
(21.1)
(5.4)
(13.6)
-400
(14.8)
(5.0)
(14.4)
December 31, 2024
+400
22.0
%
4.9
%
11.3
%
+300
18.3
3.9
9.0
+200
13.4
3.2
6.7
+100
7.3
2.0
3.8
-100
(9.1)
(4.2)
(6.2)
-200
(20.3)
(5.5)
(10.2)
-300
(22.1)
(5.7)
(14.0)
-400
(14.1)
(5.8)
(15.9)
Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in EVE and net interest income requires that we make certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The EVE and net interest income table presented above assumes that the composition of our interest-rate-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and, accordingly, the data does not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts based on local competitive factors, which could change the actual impact on EVE and net interest income. The table also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or the repricing characteristics of specific assets and liabilities. Accordingly, although the EVE and net interest income table provides an indication of our sensitivity to interest rate changes at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.
Credit Risk
Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We manage credit risk in the loan portfolio by adhering to well-defined underwriting criteria and account administration standards established by management. Our loan policy documents underwriting standards, approval levels, exposure limits and other limits or standards deemed necessary and prudent. Portfolio diversification at the borrower, industry, and product levels is actively managed to mitigate concentration risk. In addition, credit risk management also includes an independent loan review process that assesses compliance with loan policy, compliance with loan documentation standards, accuracy of the risk rating and overall credit quality of the loan portfolio.
An evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report was carried out under the supervision and with the participation of the Company’s Chief Executive Officer, Chief Financial Officer and other members of the Company’s senior management. The Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, the end of the period covered by this report, the Company’s disclosure controls and procedures were effective in ensuring that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is: (i) accumulated and communicated to the Company’s management (including the Chief Executive Officer and Chief Financial Officer) to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) or Rule 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
We are sometimes party to legal actions that are routine and incidental to our business. Management, in consultation with legal counsel, does not expect the ultimate disposition of any or a combination of these matters to have a material adverse effect on our assets, business, cash flow, financial condition, liquidity, prospects and results of operations; however, given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to our business, including laws and regulations governing consumer protection, fair lending, fair labor, privacy, information security, and anti-money laundering and anti-terrorism laws, we, like all banking organizations, are subject to heightened legal and regulatory compliance and litigation risk.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Unregistered Sales of Equity Securities
None.
Issuer Purchases of Equity Securities
On December 17, 2024, the Company’s board of directors approved a stock repurchase program that authorizes the Company to repurchase up to $15.0 million of its common stock. The stock repurchase program will be in effect until January 1, 2026, with the timing of purchases and number of shares repurchased dependent upon a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The Company is not obligated to purchase any shares under the stock repurchase program, and the stock repurchase program may be suspended or discontinued at any time without notice.
The following table sets forth information about the Company’s purchases of its common stock during the second quarter of 2025:
Period
Total Number of Shares Purchased
Average Price Paid Per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (in thousands)
During the fiscal quarter ended June 30, 2025, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibits 101).
_________________________________________________
*This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically incorporates it by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HBT FINANCIAL, INC.
August 1, 2025
By:
/s/ Peter R. Chapman
Peter R. Chapman
Chief Financial Officer
(on behalf of the registrant and as principal financial officer)