EX-99.1 2 tmb-20200430xex99d1.htm EX-99.1 hbt_Ex99_1

EXHIBIT 99.1

 

Picture 1

 

HBT FINANCIAL, INC. ANNOUNCES

FIRST QUARTER 2020 FINANCIAL RESULTS

 

First Quarter Highlights

·

Net income of $6.2 million, or $0.23 per diluted share; return on average assets (ROAA) of 0.78%; return on average stockholders' equity (ROAE) of 7.29%; and return on average tangible common equity (ROATCE)(1) of 7.92%

·

Adjusted net income(1) of $8.4 million; or $0.30 per diluted share, adjusted ROAA(1) of 1.05%; adjusted ROAE(1) of 9.81%; and adjusted ROATCE(1) of 10.67%

·

$141 million in Paycheck Protection Program loans approved and funded subsequent to March 31, 2020 through April 24, 2020


(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

 

Bloomington, IL, April 30, 2020 – HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company and State Bank of Lincoln, today reported net income of $6.2 million, or $0.23 diluted earnings per share, for the first quarter of 2020. This compares to net income of $16.1 million, or $0.61 diluted earnings per share, for the fourth quarter of 2019, and net income of $18.7 million, or $1.04 diluted earnings per share, for the first quarter of 2019.

 

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “The COVID-19 pandemic has presented unprecedented challenges for our team and for our customers.  However, for several generations, our banks have been a source of strength for our customers and communities during difficult times.  Our top priority is supporting our employees and customers and maintaining the health and safety of all involved.  Many of our employees have been able to work remotely and we took the difficult step of closing our lobbies, with visits limited to appointment only. Our team has worked hard to minimize customer impact and continue our commitment to excellent service. Our retail staff continues to assist our clients with essential banking needs, and our lenders are in regular contact with our borrowers, working closely with them for the best solutions under the current circumstances.  Through April 24, 2020, we had funded $141 million of PPP (Payroll Protection Program) loans, for 1,129 businesses in our communities.   HBT Financial is well positioned, with an attractive deposit base, strong capital levels and a track record of safety and soundness. We are committed to uphold our Midwestern values of hard work, perseverance and doing the right thing as we continue to support our stakeholders in this crisis.”

 

C Corp Equivalent Net Income

 

Prior to October 11, 2019, the Company operated as an S Corporation for U.S. federal and state income tax purposes. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect state replacement taxes. To facilitate comparison, the Company reports its C Corp equivalent financial results, which do not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

 

The Company reported C Corp equivalent net income of $15.1 million, or $0.58 diluted earnings per share, for the fourth quarter of 2019 and C Corp equivalent net income of $14.0 million, or $0.78 diluted earnings per share, for the first quarter of 2019.

 

HBT Financial, Inc.

Page 2 of 15

 

Adjusted Net Income

 

In addition to reporting C Corp equivalent results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $8.4 million, or $0.30 adjusted diluted earnings per share, for the first quarter of 2020. This compares to adjusted net income of $14.4 million, or $0.55 adjusted diluted earnings per share, for the fourth quarter of 2019, and adjusted net income of $14.4 million, or $0.80 adjusted diluted earnings per share, for the first quarter of 2019 (see "Reconciliation of Non-GAAP Financial Measures" tables).

 

Net Interest Income and Net Interest Margin

 

Net interest income for the first quarter of 2020 was $30.7 million, a decrease of 5.0% from $32.3 million for the fourth quarter of 2019. The decrease was primarily attributable to lower yields on loans and securities and a decrease in average interest-earning assets.

 

Relative to the first quarter of 2019, net interest income decreased $3.8 million, or 11.0%. The decline was primarily attributable to lower yields on average interest-earning assets.

 

Net interest margin for the first quarter of 2020 was 4.00%, including 5 basis points attributable to acquired loan discount accretion, compared to 4.12%, including 2 basis points attributable to acquired loan discount accretion, for the fourth quarter of 2019. The decrease was primarily attributable to a decline in average loan yields, lower average loan balances, and lower securities yields and balances.

 

Relative to the first quarter of 2019, net interest margin decreased from 4.44%, including 18 basis points attributable to acquired loan discount accretion, due primarily to lower loan yields and an increase in lower-yielding cash balances, partially offset by lower balances in time deposits and a lower cost of interest-bearing demand deposits.

 

The Federal Open Market Committee lowered its target federal funds rate 50 basis points on March 3, 2020 and 100 basis points on March 16, 2020. The Company expects the cumulative decrease of 150 basis points in the target federal funds rate in March 2020 to continue placing downward pressure on its net interest margin in 2020.

 

Noninterest Income

 

Noninterest income for the first quarter of 2020 was $5.3 million, a decrease of 49.2% from $10.3 million for the fourth quarter of 2019. First quarter 2020 results included a negative $2.2 million mortgage servicing rights (“MSR”) fair value adjustment compared to $0.6 million gain on the fair value adjustment of the MSR asset in the fourth quarter of 2019. Lower gains on foreclosed assets and reduced fees on customer-related interest rate swaps, included in other noninterest income, also contributed to noninterest income decline.

 

Relative to the first quarter of 2019, noninterest income decreased 29.9% from $7.5 million. The decline was primarily attributable to a larger negative MSR fair value adjustment and nonrecurring gains on sales of First Community Title Services, Inc. and HBT Insurance of $0.8 million in the first quarter 2019.

 

Noninterest Expense

 

Noninterest expense for the first quarter of 2020 was $23.3 million, compared with $22.0 million for the fourth quarter of 2019. The increase was primarily attributable to higher employee benefits expense, as first quarter of 2020 results included a $0.8 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019. The SERP liability varies inversely with interest rates and resulted in a $0.4 million benefit in the fourth quarter of 2019. The SERP will be liquidated in June 2020. In addition, an increase in medical benefit expenses were partially offset by a decrease in the cash-settled stock appreciation rights (SAR) liability due primarily to changes in the Company’s stock price. The employee benefits expense related to the cash-settled SAR liability resulted in a benefit of $0.3 million in the first quarter of 2020, an expense of $0.4 million in the fourth quarter 2019, and a benefit of $0.1 million in the first quarter of 2019. FDIC insurance expense was higher in the first quarter of 2020 due to the

 

HBT Financial, Inc.

Page 3 of 15

 

impact of the application of small bank assessment credits in the fourth quarter of 2019. Other noninterest and occupancy expenses increased in the first quarter of 2020, but were largely offset by lower loan collection and servicing and furniture and equipment expenses.

 

Relative to the first quarter of 2019, noninterest expense increased 4.9% from $22.2 million. The increase was primarily due to higher employee benefits costs associated with the SERP charge in the first quarter of 2020 and an increase in medical benefit expenses, as higher salaries and data processing costs were offset by lower furniture and equipment, FDIC insurance, and loan collection and servicing expenses.

 

Loan Portfolio

 

Total loans outstanding, before allowance for loan losses, were $2.13 billion at March 31, 2020, compared with $2.16 billion at December 31, 2019 and $2.18 billion at March 31, 2019. The $30.9 million decline in loans from December 31, 2019 was primarily due to a $39.2 million reduction in CRE – non-owner occupied balances, a $9.0 million decline in municipal, consumer and other loans, and a $7.9 million reduction in commercial and industrial balances, which were partially offset by a $20.9 million increase in agricultural and farmland loans, primarily due to the addition of a new senior lender in one of our markets at the beginning of the year, and a $7.4 million increase in construction and land development loans.

 

Deposits

 

Total deposits were $2.73 billion at March 31, 2020, compared with $2.78 billion at December 31, 2019, and $2.82 billion at March 31, 2019. The $46.6 million decrease in total deposits from December 31, 2019 included expected outflows from a small number of retail deposit accounts that had increased by $40.2 million in the fourth quarter of 2019. Declines in time, noninterest-bearing, interest-bearing demand and money market balances more than offset a modest increase in savings deposit balances in the first quarter of 2020.

 

Asset Quality

 

Nonperforming loans totaled $15.4 million, or 0.72% of total loans, at March 31, 2020, compared with $19.0 million, or 0.88% of total loans, at December 31, 2019, and $13.9 million, or 0.64% of total loans, at March 31, 2019. The decline in nonperforming loans from the end of the prior quarter was primarily attributable to payoffs and paydowns.

 

The Company recorded a provision for loan losses of $4.4 million for the first quarter of 2020, compared with $0.1 million for the fourth quarter of 2019. The increase in provision for loan losses was primarily due to $3.3 million reserve build related to adjustments to qualitative factors to reflect the economic weakness resulting from the COVID-19 pandemic. The remaining $1.1 million of the provision was primarily due to a $1.3 million increase in a specific reserve related to one credit offset by a decrease in specific reserves related to several other credits.

 

Net charge-offs for the first quarter of 2020 were $0.6 million, or 0.11% of average loans on an annualized basis compared to $0.6 million, or 0.11% of average loans on an annualized basis, for the fourth quarter of 2019, and $0.3 million, or 0.05% of average loans on an annualized basis, for the first quarter of 2019.

 

The Company’s allowance for loan losses was 1.22% of total loans and 169.70% of nonperforming loans at March 31, 2020, compared with 1.03% of total loans and 117.06% of nonperforming loans at December 31, 2019.

 

 

HBT Financial, Inc.

Page 4 of 15

 

Capital

 

At March 31, 2020, the Company exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’, as summarized in the following table:

 

 

 

 

 

 

 

 

Well Capitalized

 

March 31, 

Regulatory

 

2020

Requirements

Total capital to risk-weighted assets

15.03

%  

10.00

%

Tier 1 capital to risk-weighted assets

13.95

%  

8.00

%

Common equity tier 1 capital ratio

12.44

%  

6.50

%

Tier 1 leverage ratio

10.70

%  

5.00

%

Total stockholders' equity to total assets

10.58

%

N/A

 

Tangible common equity to tangible assets (1)

9.81

%  

N/A

 


(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

 

About HBT Financial, Inc.

 

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and State Bank of Lincoln. The banks provide a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois through 64 branches. As of March 31, 2020, HBT had total assets of $3.2 billion, total loans of $2.1 billion, and total deposits of $2.7 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back 100 years.

 

Non-GAAP Financial Measures

 

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), originated loans and acquired loans and any ratios derived therefrom, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. 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 directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

 

Forward-Looking Statements

 

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals, future earnings levels, and future loan growth. These statements are subject to many risks and 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 these forward-looking statements include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois in particular, including in the financial markets; changes in business plans as

 

HBT Financial, Inc.

Page 5 of 15

 

circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

CONTACT:

Matthew Keating

HBTIR@hbtbank.com

(310) 622-8230

 

HBT Financial, Inc.

Page 6 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

December 31, 

 

March 31, 

 

    

2020

    

2019

    

2019

INTEREST AND DIVIDEND INCOME

 

(dollars in thousands, except per share amounts)

Loans, including fees:

 

 

 

 

 

 

 

 

 

Taxable

 

$

26,941

 

$

28,039

 

$

30,063

Federally tax exempt

 

 

674

 

 

716

 

 

710

Securities:

 

 

 

 

 

 

 

 

 

Taxable

 

 

3,334

 

 

3,556

 

 

3,922

Federally tax exempt

 

 

1,028

 

 

1,269

 

 

1,552

Interest-bearing deposits in bank

 

 

729

 

 

1,006

 

 

687

Other interest and dividend income

 

 

14

 

 

14

 

 

15

Total interest and dividend income

 

 

32,720

 

 

34,600

 

 

36,949

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,595

 

 

1,838

 

 

1,983

Securities sold under agreements to repurchase

 

 

20

 

 

24

 

 

14

Borrowings

 

 

 —

 

 

 2

 

 

 3

Subordinated debentures

 

 

443

 

 

460

 

 

497

Total interest expense

 

 

2,058

 

 

2,324

 

 

2,497

Net interest income

 

 

30,662

 

 

32,276

 

 

34,452

PROVISION FOR LOAN LOSSES

 

 

4,355

 

 

138

 

 

776

Net interest income after provision for loan losses

 

 

26,307

 

 

32,138

 

 

33,676

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

Card income

 

 

1,792

 

 

1,952

 

 

1,832

Service charges on deposit accounts

 

 

1,834

 

 

2,065

 

 

1,763

Wealth management fees

 

 

1,814

 

 

1,911

 

 

1,747

Mortgage servicing

 

 

724

 

 

801

 

 

729

Mortgage servicing rights fair value adjustment

 

 

(2,171)

 

 

582

 

 

(1,002)

Gains on sale of mortgage loans

 

 

536

 

 

915

 

 

525

Gains (losses) on securities

 

 

(52)

 

 

(47)

 

 

79

Gains (losses) on foreclosed assets

 

 

35

 

 

808

 

 

(17)

Gains (losses) on other assets

 

 

(3)

 

 

 —

 

 

905

Title insurance activity

 

 

 —

 

 

 —

 

 

129

Other noninterest income

 

 

743

 

 

1,349

 

 

797

Total noninterest income

 

 

5,252

 

 

10,336

 

 

7,487

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries

 

 

12,754

 

 

12,581

 

 

12,522

Employee benefits

 

 

2,434

 

 

1,663

 

 

1,244

Occupancy of bank premises

 

 

1,828

 

 

1,607

 

 

1,837

Furniture and equipment

 

 

603

 

 

763

 

 

789

Data processing

 

 

1,586

 

 

1,547

 

 

1,162

Marketing and customer relations

 

 

1,044

 

 

1,036

 

 

933

Amortization of intangible assets

 

 

317

 

 

336

 

 

376

FDIC insurance

 

 

36

 

 

(237)

 

 

219

Loan collection and servicing

 

 

348

 

 

732

 

 

742

Foreclosed assets

 

 

89

 

 

151

 

 

164

Other noninterest expense

 

 

2,268

 

 

1,771

 

 

2,224

Total noninterest expense

 

 

23,307

 

 

21,950

 

 

22,212

INCOME BEFORE INCOME TAX EXPENSE

 

 

8,252

 

 

20,524

 

 

18,951

INCOME TAX EXPENSE

 

 

2,031

 

 

4,437

 

 

215

NET INCOME

 

$

6,221

 

$

16,087

 

$

18,736

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

0.23

 

$

0.61

 

$

1.04

EARNINGS PER SHARE - DILUTED

 

$

0.23

 

$

0.61

 

$

1.04

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

 

 

27,457,306

 

 

26,211,282

 

 

18,027,512

 

 

 

 

 

 

 

 

 

 

PRO FORMA C CORP EQUIVALENT INFORMATION

 

 

 

 

 

 

 

 

 

Historical income before income tax expense

 

 

 

 

$

20,524

 

$

18,951

Pro forma C Corp equivalent income tax expense

 

 

 

 

 

5,436

 

 

4,915

Pro forma C Corp equivalent net income

 

 

 

 

$

15,088

 

$

14,036

 

 

 

 

 

 

 

 

 

 

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC

 

 

 

 

$

0.58

 

$

0.78

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED

 

 

 

 

$

0.58

 

$

0.78

 

HBT Financial, Inc.

Page 7 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

 

December 31, 

   

March 31, 

 

    

2020

    

2019

    

2019

 

 

(dollars in thousands)

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

34,782

 

$

22,112

 

$

17,984

Interest-bearing deposits with banks

 

 

230,654

 

 

261,859

 

 

142,518

Cash and cash equivalents

 

 

265,436

 

 

283,971

 

 

160,502

 

 

 

 

 

 

 

 

 

 

Interest-bearing time deposits with banks

 

 

 —

 

 

248

 

 

248

Debt securities available-for-sale, at fair value

 

 

615,565

 

 

592,404

 

 

681,233

Debt securities held-to-maturity

 

 

79,741

 

 

88,477

 

 

116,745

Equity securities

 

 

4,759

 

 

4,389

 

 

3,994

Restricted stock, at cost

 

 

2,425

 

 

2,425

 

 

2,719

Loans held for sale

 

 

4,805

 

 

4,531

 

 

2,496

 

 

 

 

 

 

 

 

 

 

Loans, before allowance for loan losses

 

 

2,132,952

 

 

2,163,826

 

 

2,183,322

Allowance for loan losses

 

 

(26,087)

 

 

(22,299)

 

 

(21,013)

Loans, net of allowance for loan losses

 

 

2,106,865

 

 

2,141,527

 

 

2,162,309

 

 

 

 

 

 

 

 

 

 

Bank premises and equipment, net

 

 

54,135

 

 

53,987

 

 

54,185

Bank premises held for sale

 

 

121

 

 

121

 

 

208

Foreclosed assets

 

 

4,469

 

 

5,099

 

 

10,151

Goodwill

 

 

23,620

 

 

23,620

 

 

23,620

Core deposit intangible assets, net

 

 

3,713

 

 

4,030

 

 

5,077

Mortgage servicing rights, at fair value

 

 

6,347

 

 

8,518

 

 

9,916

Investments in unconsolidated subsidiaries

 

 

1,165

 

 

1,165

 

 

1,165

Accrued interest receivable

 

 

12,096

 

 

13,951

 

 

15,256

Other assets

 

 

27,847

 

 

16,640

 

 

7,843

Total assets

 

$

3,213,109

 

$

3,245,103

 

$

3,257,667

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

676,341

 

$

689,116

 

$

661,527

Interest-bearing

 

 

2,053,962

 

 

2,087,739

 

 

2,159,916

Total deposits

 

 

2,730,303

 

 

2,776,855

 

 

2,821,443

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

 

40,811

 

 

44,433

 

 

40,528

Subordinated debentures

 

 

37,599

 

 

37,583

 

 

37,533

Other liabilities

 

 

64,583

 

 

53,314

 

 

29,570

Total liabilities

 

 

2,873,296

 

 

2,912,185

 

 

2,929,074

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

Common stock

 

 

275

 

 

275

 

 

181

Surplus

 

 

190,591

 

 

190,524

 

 

32,288

Retained earnings

 

 

136,378

 

 

134,287

 

 

298,131

Accumulated other comprehensive income

 

 

12,569

 

 

7,832

 

 

1,012

Less cost of treasury stock held

 

 

 —

 

 

 —

 

 

(3,019)

Total stockholders’ equity

 

 

339,813

 

 

332,918

 

 

328,593

Total liabilities and stockholders’ equity

 

$

3,213,109

 

$

3,245,103

 

$

3,257,667

 

 

 

 

 

 

 

 

 

 

SHARE INFORMATION

 

 

 

 

 

 

 

 

 

Ending number shares of common stock outstanding

 

 

27,457,306

 

 

27,457,306

 

 

18,027,512

 

 

HBT Financial, Inc.

Page 8 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

 

December 31, 

   

March 31, 

 

    

2020

    

2019

    

2019

 

 

(dollars in thousands)

LOANS

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

299,266

 

$

307,175

 

$

363,918

Agricultural and farmland

 

 

228,701

 

 

207,776

 

 

207,817

Commercial real estate - owner occupied

 

 

229,608

 

 

231,162

 

 

250,274

Commercial real estate - non-owner occupied

 

 

540,515

 

 

579,757

 

 

556,386

Multi-family

 

 

177,172

 

 

179,073

 

 

146,374

Construction and land development

 

 

232,311

 

 

224,887

 

 

223,489

One-to-four family residential

 

 

313,925

 

 

313,580

 

 

321,224

Municipal, consumer, and other

 

 

111,454

 

 

120,416

 

 

113,840

Loans, before allowance for loan losses

 

$

2,132,952

 

$

2,163,826

 

$

2,183,322

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

   

March 31, 

 

    

2020

    

2019

    

2020

 

 

(dollars in thousands)

DEPOSITS

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

676,341

 

$

689,116

 

$

661,527

Interest-bearing demand

 

 

810,074

 

 

814,639

 

 

819,313

Money market

 

 

472,532

 

 

477,765

 

 

453,117

Savings

 

 

444,137

 

 

438,927

 

 

435,353

Time

 

 

327,219

 

 

356,408

 

 

452,133

Total deposits

 

$

2,730,303

 

$

2,776,855

 

$

2,821,443

 

 

HBT Financial, Inc.

Page 9 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

 

 

    

Average

    

 

 

    

*

    

Average

    

 

 

    

*

    

Average

    

 

 

    

*

 

 

 

Balance

 

Interest

 

Yield/Cost

 

Balance

 

Interest

 

Yield/Cost

 

Balance

 

Interest

 

Yield/Cost

 

 

 

(dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

2,141,031

 

$

27,615

 

5.16

%  

$

2,162,975

 

$

28,755

 

5.32

%  

$

2,164,330

 

$

30,773

 

5.69

%

Securities

 

 

668,572

 

 

4,362

 

2.61

 

 

700,441

 

 

4,825

 

2.76

 

 

806,504

 

 

5,474

 

2.71

 

Deposits with banks

 

 

251,058

 

 

729

 

1.16

 

 

265,237

 

 

1,006

 

1.51

 

 

131,663

 

 

687

 

2.09

 

Other

 

 

2,425

 

 

14

 

2.37

 

 

2,425

 

 

14

 

2.39

 

 

2,719

 

 

15

 

2.24

 

Total interest-earning assets

 

 

3,063,086

 

$

32,720

 

4.27

%  

 

3,131,078

 

$

34,600

 

4.42

%  

 

3,105,216

 

$

36,949

 

4.76

%

Allowance for loan losses

 

 

(22,474)

 

 

 

 

 

 

 

(22,766)

 

 

 

 

 

 

 

(20,441)

 

 

 

 

 

 

Noninterest-earning assets

 

 

148,131

 

 

 

 

 

 

 

152,961

 

 

 

 

 

 

 

148,518

 

 

 

 

 

 

Total assets

 

$

3,188,743

 

 

 

 

 

 

$

3,261,273

 

 

 

 

 

 

$

3,233,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

811,866

 

$

251

 

0.12

%  

$

820,390

 

$

299

 

0.15

%  

$

826,456

 

$

417

 

0.20

%

Money market

 

 

464,124

 

 

394

 

0.34

 

 

486,288

 

 

481

 

0.40

 

 

442,520

 

 

370

 

0.33

 

Savings

 

 

434,276

 

 

70

 

0.06

 

 

434,241

 

 

71

 

0.07

 

 

424,986

 

 

68

 

0.06

 

Time

 

 

341,770

 

 

880

 

1.03

 

 

359,731

 

 

987

 

1.10

 

 

432,877

 

 

1,128

 

1.04

 

Total interest-bearing deposits

 

 

2,052,036

 

 

1,595

 

0.31

 

 

2,100,650

 

 

1,838

 

0.35

 

 

2,126,839

 

 

1,983

 

0.37

 

Securities sold under agreements to repurchase

 

 

41,968

 

 

20

 

0.19

 

 

46,028

 

 

24

 

0.21

 

 

42,089

 

 

14

 

0.13

 

Borrowings

 

 

221

 

 

 —

 

0.52

 

 

272

 

 

 2

 

2.60

 

 

557

 

 

 3

 

2.56

 

Subordinated debentures

 

 

37,589

 

 

443

 

4.72

 

 

37,577

 

 

460

 

4.90

 

 

37,528

 

 

497

 

5.30

 

Total interest-bearing liabilities

 

 

2,131,814

 

$

2,058

 

0.39

%  

 

2,184,527

 

$

2,324

 

0.43

%  

 

2,207,013

 

$

2,497

 

0.45

%

Noninterest-bearing deposits

 

 

670,714

 

 

 

 

  

 

 

699,373

 

 

  

 

  

 

 

650,630

 

 

  

 

  

 

Noninterest-bearing liabilities

 

 

44,696

 

 

 

 

  

 

 

45,589

 

 

  

 

  

 

 

28,493

 

 

  

 

  

 

Total liabilities

 

 

2,847,224

 

 

 

 

  

 

 

2,929,489

 

 

  

 

  

 

 

2,886,136

 

 

  

 

  

 

Stockholders' Equity

 

 

341,519

 

 

 

 

  

 

 

331,784

 

 

  

 

  

 

 

347,157

 

 

  

 

  

 

Total liabilities and stockholders’ equity

 

$

3,188,743

 

 

 

 

  

 

$

3,261,273

 

 

  

 

  

 

$

3,233,293

 

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/Net interest margin (3)

 

 

 

 

$

30,662

 

4.00

%  

 

 

 

$

32,276

 

4.12

%  

 

 

 

$

34,452

 

4.44

%  

Tax-equivalent adjustment (2)

 

 

 

 

 

463

 

0.06

 

 

 

 

 

534

 

0.07

 

 

 

 

 

610

 

0.08

 

Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)

 

 

 

 

$

31,125

 

4.06

%  

 

 

 

$

32,810

 

4.19

%  

 

 

 

$

35,062

 

4.52

%  

Net interest rate spread (4)

 

 

 

 

 

 

 

3.88

%  

 

  

 

 

  

 

3.99

%  

 

  

 

 

  

 

4.31

%  

Net interest-earning assets (5)

 

$

931,272

 

 

 

 

  

 

$

946,551

 

 

  

 

  

 

$

898,203

 

 

  

 

  

 

Ratio of interest-earning assets to interest-bearing liabilities

 

 

1.44

 

 

 

 

  

 

 

1.43

 

 

  

 

  

 

 

1.41

 

 

  

 

  

 

Cost of total deposits

 

 

 

 

 

 

 

0.23

%  

 

  

 

 

  

 

0.26

%  

 

  

 

 

  

 

0.29

%  


*        Annualized measure.

(1)

See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

(2)

On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

(3)

Net interest margin represents net interest income divided by average total interest-earning assets.

(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.

 

HBT Financial, Inc.

Page 10 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

Nonaccrual

 

$

15,372

 

$

19,019

 

$

13,877

 

Past due 90 days or more, still accruing (1)

 

 

 —

 

 

30

 

 

53

 

Total nonperforming loans

 

 

15,372

 

 

19,049

 

 

13,930

 

Foreclosed assets

 

 

4,469

 

 

5,099

 

 

10,151

 

Total nonperforming assets

 

$

19,841

 

$

24,148

 

$

24,081

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS (Originated) (2)

 

 

  

 

 

  

 

 

  

 

Nonaccrual

 

$

10,041

 

$

10,811

 

$

8,619

 

Past due 90 days or more, still accruing

 

 

 —

 

 

30

 

 

53

 

Total nonperforming loans (originated)

 

 

10,041

 

 

10,841

 

 

8,672

 

Foreclosed assets

 

 

965

 

 

1,022

 

 

1,439

 

Total nonperforming (originated)

 

$

11,006

 

$

11,863

 

$

10,111

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS (Acquired) (2)

 

 

  

 

 

  

 

 

  

 

Nonaccrual

 

$

5,331

 

$

8,208

 

$

5,258

 

Past due 90 days or more, still accruing (1)

 

 

 —

 

 

 —

 

 

 —

 

Total nonperforming loans (acquired)

 

 

5,331

 

 

8,208

 

 

5,258

 

Foreclosed assets

 

 

3,504

 

 

4,077

 

 

8,712

 

Total nonperforming assets (acquired)

 

$

8,835

 

$

12,285

 

$

13,970

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

26,087

 

$

22,299

 

$

21,013

 

 

 

 

 

 

 

 

 

 

 

 

Loans, before allowance for loan losses

 

$

2,132,952

 

$

2,163,826

 

$

2,183,322

 

Loans, before allowance for loan losses (originated) (2)

 

 

1,982,067

 

 

1,998,496

 

 

1,974,840

 

Loans, before allowance for loan losses (acquired) (2)

 

 

150,885

 

 

165,330

 

 

208,482

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY RATIOS

 

 

  

 

 

  

 

 

  

 

Allowance for loan losses to loans, before allowance for loan losses

 

 

1.22

%  

 

1.03

%  

 

0.96

%

Allowance for loan losses to nonperforming loans

 

 

169.70

 

 

117.06

 

 

150.85

 

Nonperforming loans to loans, before allowance for loan losses

 

 

0.72

 

 

0.88

 

 

0.64

 

Nonperforming assets to total assets

 

 

0.62

 

 

0.74

 

 

0.74

 

Nonperforming assets to loans, before allowance for loan losses and foreclosed assets

 

 

0.93

 

 

1.11

 

 

1.10

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY RATIOS (Originated) (2)

 

 

  

 

 

  

 

 

  

 

Nonperforming loans to loans, before allowance for loan losses

 

 

0.51

%  

 

0.54

%  

 

0.44

%

Nonperforming assets to loans, before allowance for loan losses and foreclosed assets

 

 

0.56

 

 

0.59

 

 

0.51

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY RATIOS (Acquired) (2)

 

 

  

 

 

  

 

 

  

 

Nonperforming loans to loans, before allowance for loan losses

 

 

3.53

%  

 

4.96

%  

 

2.52

%

Nonperforming assets to loans, before allowance for loan losses and foreclosed assets

 

 

5.72

 

 

7.25

 

 

6.43

 


(1)

Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.3 million, $0.1 million, and $2.5 million as of March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

(2)

Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

 

HBT Financial, Inc.

Page 11 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

ALLOWANCE FOR LOAN LOSSES

 

(dollars in thousands)

 

Beginning balance

 

$

22,299

 

$

22,761

 

$

20,509

 

Provision

 

 

4,355

 

 

138

 

 

776

 

Charge-offs

 

 

(1,221)

 

 

(837)

 

 

(533)

 

Recoveries

 

 

654

 

 

237

 

 

261

 

Ending balance

 

$

26,087

 

$

22,299

 

$

21,013

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

567

 

$

600

 

$

272

 

Net charge-offs (recoveries) - (originated) (1)

 

 

172

 

 

550

 

 

196

 

Net charge-offs (recoveries) - (acquired) (1)

 

 

395

 

 

50

 

 

76

 

 

 

 

 

 

 

 

 

 

 

 

Average loans, before allowance for loan losses

 

$

2,141,031

 

$

2,162,975

 

$

2,164,330

 

Average loans, before allowance for loan losses (originated) (1)

 

 

1,984,066

 

 

1,988,658

 

 

1,946,035

 

Average loans, before allowance for loan losses (acquired) (1)

 

 

156,965

 

 

174,317

 

 

218,295

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans, before allowance for loan losses *

 

 

0.11

%

 

0.11

%

 

0.05

%

Net charge-offs to average loans, before allowance for loan losses (originated) * (1)

 

 

0.03

 

 

0.11

 

 

0.04

 

Net charge-offs to average loans, before allowance for loan losses (acquired) * (1)

 

 

1.01

 

 

0.11

 

 

0.14

 


*        Annualized measure.

(1)

Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

 

HBT Financial, Inc.

Page 12 of 15

 

HBT Financial, Inc.

Consolidated Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or for the Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands, except per share amounts)

 

EARNINGS AND PER SHARE INFORMATION

 

 

 

 

 

 

 

 

 

 

Net income

 

$

6,221

 

$

16,087

 

$

18,736

 

Earnings per share - Basic

 

 

0.23

 

 

0.61

 

 

1.04

 

Earnings per share - Diluted

 

 

0.23

 

 

0.61

 

 

1.04

 

 

 

 

 

 

 

 

 

 

 

 

C Corp equivalent net income (1)

 

 

N/A

 

$

15,088

 

$

14,036

 

C Corp equivalent earnings per share - Basic (1)

 

 

N/A

 

 

0.58

 

 

0.78

 

C Corp equivalent earnings per share - Diluted (1)

 

 

N/A

 

 

0.58

 

 

0.78

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.38

 

$

12.12

 

$

18.23

 

 

 

 

 

 

 

 

 

 

 

 

Ending number shares of common stock outstanding

 

 

27,457,306

 

 

27,457,306

 

 

18,027,512

 

Weighted average shares of common stock outstanding

 

 

27,457,306

 

 

26,211,282

 

 

18,027,512

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

 

0.78

%

 

1.97

%

 

2.32

%

Return on average stockholders' equity *

 

 

7.29

 

 

19.39

 

 

21.59

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin *

 

 

4.00

%

 

4.12

%

 

4.44

%

Efficiency ratio

 

 

64.01

 

 

50.72

 

 

52.07

 

 

 

 

 

 

 

 

 

 

 

 

C Corp equivalent return on average assets * (1)

 

 

N/A

 

 

1.85

%

 

1.74

%

C Corp equivalent return on average stockholders' equity * (1)

 

 

N/A

 

 

18.19

 

 

16.17

 

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP FINANCIAL MEASURES

 

 

 

 

 

 

 

 

 

 

Adjusted net income (2)

 

$

8,379

 

$

14,417

 

$

14,359

 

Adjusted earnings per share - Basic (2)

 

 

0.30

 

 

0.55

 

 

0.80

 

Adjusted earnings per share - Diluted (2)

 

 

0.30

 

 

0.55

 

 

0.80

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

11.38

 

$

11.12

 

$

16.64

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (tax equivalent basis) * (2)

 

 

4.06

%

 

4.19

%

 

4.52

%

Efficiency ratio (tax equivalent basis) (2)

 

 

63.20

 

 

50.10

 

 

51.32

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted return on average assets * (2)

 

 

1.05

%

 

1.77

%

 

1.78

%

Adjusted return on average stockholders' equity * (2)

 

 

9.81

 

 

17.38

 

 

16.54

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity * (2)

 

 

7.92

%

 

21.17

%

 

23.55

%

C Corp equivalent return on average tangible common equity * (1) (2)

 

 

N/A

 

 

19.86

 

 

17.64

 

Adjusted return on average tangible common equity * (2)

 

 

10.67

 

 

18.97

 

 

18.05

 


*        Annualized measure.

(1)

Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

(2)

See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

N/A   Not applicable.

 

HBT Financial, Inc.

Page 13 of 15

 

Reconciliation of Non-GAAP Financial Measures –

Adjusted Net Income and Adjusted Return on Average Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

Net income

 

$

6,221

 

$

16,087

 

$

18,736

 

C Corp equivalent adjustment (2)

 

 

 —

 

 

(999)

 

 

(4,700)

 

C Corp equivalent net income (2)

 

 

6,221

 

 

15,088

 

 

14,036

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Net earnings (losses) from closed or sold operations, including gains on sale (1)

 

 

 —

 

 

(9)

 

 

550

 

Charges related to termination of certain employee benefit plans

 

 

(848)

 

 

365

 

 

 —

 

Mortgage servicing rights fair value adjustment

 

 

(2,171)

 

 

582

 

 

(1,002)

 

Total adjustments

 

 

(3,019)

 

 

938

 

 

(452)

 

Tax effect of adjustments

 

 

861

 

 

(267)

 

 

129

 

Less adjustments after tax effect

 

 

(2,158)

 

 

671

 

 

(323)

 

Adjusted net income

 

$

8,379

 

$

14,417

 

$

14,359

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

3,188,743

 

$

3,261,273

 

$

3,233,293

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

 

0.78

%

 

1.97

%

 

2.32

%

C Corp equivalent return on average assets * (2)

 

 

N/A

 

 

1.85

 

 

1.74

 

Adjusted return on average assets *

 

 

1.05

 

 

1.77

 

 

1.78

 


*        Annualized measure.

(1)

Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.

(2)

Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A   Not applicable.

 

Reconciliation of Non-GAAP Financial Measures – 

Adjusted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

December 31, 

 

March 31, 

 

    

2020

    

2019

    

2019

 

 

(dollars in thousands, except per share amounts)

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

6,221

 

$

16,087

 

$

18,736

Earnings allocated to unvested restricted stock units (1)

 

 

(15)

 

 

 —

 

 

 —

Numerator for earnings per share - basic and diluted

 

$

6,206

 

$

16,087

 

$

18,736

 

 

 

 

 

 

 

 

 

 

C Corp equivalent net income (3)

 

 

N/A

 

$

15,088

 

$

14,036

Earnings allocated to unvested restricted stock units (1) (3)

 

 

N/A

 

 

 —

 

 

 —

Numerator for C Corp equivalent earnings per share - basic and diluted (3)

 

 

N/A

 

$

15,088

 

$

14,036

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

8,379

 

$

14,417

 

$

14,359

Earnings allocated to unvested restricted stock units (1)

 

 

(19)

 

 

 —

 

 

 —

Numerator for adjusted earnings per share - basic and diluted

 

$

8,360

 

$

14,417

 

$

14,359

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

27,457,306

 

 

26,211,282

 

 

18,027,512

Dilutive effect of outstanding restricted stock units (2)

 

 

 —

 

 

 —

 

 

 —

Weighted average common shares outstanding, including all dilutive potential shares

 

 

27,457,306

 

 

26,211,282

 

 

18,027,512

 

 

 

 

 

 

 

 

 

 

Earnings per share - Basic

 

$

0.23

 

$

0.61

 

$

1.04

Earnings per share - Diluted

 

$

0.23

 

$

0.61

 

$

1.04

 

 

 

 

 

 

 

 

 

 

C Corp equivalent earnings per share - Basic (3)

 

 

N/A

 

$

0.58

 

$

0.78

C Corp equivalent earnings per share - Diluted (3)

 

 

N/A

 

$

0.58

 

$

0.78

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share - Basic

 

$

0.30

 

$

0.55

 

$

0.80

Adjusted earnings per share - Diluted

 

$

0.30

 

$

0.55

 

$

0.80


(1)

The Company has granted restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

(2)

Restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents during the three months ended March 31, 2020. There were no restricted stock units outstanding during the three months ended December 31, 2019 and March 31, 2019.

(3)

Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A   Not applicable.

 

HBT Financial, Inc.

Page 14 of 15

 

Reconciliation of Non-GAAP Financial Measures – 

Net Interest Margin (Tax Equivalent Basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

Net interest income (tax equivalent basis)

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

30,662

 

$

32,276

 

$

34,452

 

Tax-equivalent adjustment (1)

 

 

463

 

 

534

 

 

610

 

Net interest income (tax equivalent basis) (1)

 

$

31,125

 

$

32,810

 

$

35,062

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (tax equivalent basis)

 

 

 

 

 

 

 

 

 

 

Net interest margin *

 

 

4.00

%

 

4.12

%

 

4.44

%

Tax-equivalent adjustment * (1)

 

 

0.06

 

 

0.07

 

 

0.08

 

Net interest margin (tax equivalent basis) * (1)

 

 

4.06

%

 

4.19

%

 

4.52

%

 

 

 

 

 

 

 

 

 

 

 

Average interest-earning assets

 

$

3,063,086

 

$

3,131,078

 

$

3,105,216

 


*        Annualized measure.

(1)

On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

 

Reconciliation of Non-GAAP Financial Measures – 

Efficiency Ratio (Tax Equivalent Basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

Efficiency ratio (tax equivalent basis)

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

23,307

 

$

21,950

 

$

22,212

 

Less: amortization of intangible assets

 

 

317

 

 

336

 

 

376

 

Adjusted noninterest expense

 

$

22,990

 

$

21,614

 

$

21,836

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

30,662

 

$

32,276

 

$

34,452

 

Total noninterest income

 

 

5,252

 

 

10,336

 

 

7,487

 

Operating revenue

 

 

35,914

 

 

42,612

 

 

41,939

 

Tax-equivalent adjustment (1)

 

 

463

 

 

534

 

 

610

 

Operating revenue (tax equivalent basis) (1)

 

$

36,377

 

$

43,146

 

$

42,549

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

64.01

%

 

50.72

%

 

52.07

%

Efficiency ratio (tax equivalent basis) (1)

 

 

63.20

 

 

50.10

 

 

51.32

 


(1)

On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

 

Reconciliation of Non-GAAP Financial Measures – 

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

 

 

 

 

 

 

 

 

 

 

 

 

    

March 31, 

 

December 31, 

   

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

Tangible Common Equity

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

339,813

 

$

332,918

 

$

328,593

 

Less: Goodwill

 

 

23,620

 

 

23,620

 

 

23,620

 

Less: Core deposit intangible assets, net

 

 

3,713

 

 

4,030

 

 

5,077

 

Tangible common equity

 

$

312,480

 

$

305,268

 

$

299,896

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,213,109

 

$

3,245,103

 

$

3,257,667

 

Less: Goodwill

 

 

23,620

 

 

23,620

 

 

23,620

 

Less: Core deposit intangible assets, net

 

 

3,713

 

 

4,030

 

 

5,077

 

Tangible assets

 

$

3,185,776

 

$

3,217,453

 

$

3,228,970

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity to total assets

 

 

10.58

%

 

10.26

%

 

10.09

%

Tangible common equity to tangible assets

 

 

9.81

 

 

9.49

 

 

9.29

 

 

 

 

 

 

 

 

 

 

 

 

Ending number shares of common stock outstanding

 

 

27,457,306

 

 

27,457,306

 

 

18,027,512

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.38

 

$

12.12

 

$

18.23

 

Tangible book value per share

 

 

11.38

 

 

11.12

 

 

16.64

 

 

 

HBT Financial, Inc.

Page 15 of 15

 

Reconciliation of Non-GAAP Financial Measures – 

Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2019

 

 

 

(dollars in thousands)

 

Average Tangible Common Equity

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

341,519

 

$

331,784

 

$

347,157

 

Less: Goodwill

 

 

23,620

 

 

23,620

 

 

23,620

 

Less: Core deposit intangible assets, net

 

 

3,898

 

 

4,224

 

 

5,301

 

Average tangible common equity

 

$

314,001

 

$

303,940

 

$

318,236

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

6,221

 

$

16,087

 

$

18,736

 

C Corp equivalent net income (1)

 

 

N/A

 

 

15,088

 

 

14,036

 

Adjusted net income

 

 

8,379

 

 

14,417

 

 

14,359

 

 

 

 

 

 

 

 

 

 

 

 

Return on average stockholders' equity *

 

 

7.29

%

 

19.39

%

 

21.59

%

C Corp equivalent return on average stockholders' equity * (1)

 

 

N/A

 

 

18.19

 

 

16.17

 

Adjusted return on average stockholders' equity *

 

 

9.81

 

 

17.38

 

 

16.54

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity *

 

 

7.92

%

 

21.17

%

 

23.55

%

C Corp equivalent return on average tangible common equity * (1)

 

 

N/A

 

 

19.86

 

 

17.64

 

Adjusted return on average tangible common equity *

 

 

10.67

 

 

18.97

 

 

18.05

 


*        Annualized measure.

(1)

Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A   Not applicable.