HBT Financial Posts Strong Q3 Earnings, Net Income Up 8.7%

Ticker: HBT · Form: 10-Q · Filed: Oct 31, 2025 · CIK: 775215

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Net Interest Margin, Wealth Management, Asset Quality, Mergers & Acquisitions, Financial Performance

Related Tickers: HBT, CNBN

TL;DR

**HBT Financial is quietly crushing it, with net income up 8.7% this quarter, making it a solid buy for steady growth.**

AI Summary

HBT Financial, Inc. reported a net income of $19.765 million for the three months ended September 30, 2025, an increase of 8.7% from $18.180 million in the same period of 2024. For the nine months ended September 30, 2025, net income rose 12.7% to $58.070 million from $51.508 million in 2024. Total interest and dividend income slightly increased to $64.336 million for the quarter, up from $64.117 million year-over-year, while total interest expense decreased by 12.4% to $14.350 million, primarily due to lower deposit interest expenses. Net interest income grew by 4.7% to $49.986 million for the quarter. Noninterest income saw a significant increase of 13.1% to $9.849 million, driven by higher wealth management fees, which rose by $452,000 to $3.122 million. Total assets remained stable at $5.035 billion as of September 30, 2025, compared to $5.033 billion at December 31, 2024. The company's allowance for credit losses slightly decreased to $41.900 million from $42.044 million, indicating stable asset quality. Strategic outlook includes managing interest rate changes and potential impacts from the proposed merger with CNB Bank Shares, Inc.

Why It Matters

HBT Financial's solid Q3 performance, marked by an 8.7% increase in net income and a 4.7% rise in net interest income, signals resilience in a challenging economic environment. For investors, this indicates effective cost management and growth in core banking activities, potentially leading to continued dividend stability and share price appreciation. Employees benefit from a stable and growing company, while customers can expect continued service quality from a financially sound institution. In the competitive banking landscape, HBT's ability to increase wealth management fees by $452,000 demonstrates its capacity to diversify revenue streams and compete effectively against larger regional banks and emerging fintech companies.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its geographic concentration in Illinois and Iowa, making it susceptible to regional economic downturns. Additionally, the filing highlights risks from 'changes in interest rates and prepayment rates of the Company's assets' and 'increased competition in the financial services sector,' which could impact future profitability despite current positive trends.

Analyst Insight

Investors should consider HBT Financial's consistent earnings growth and effective interest expense management as positive indicators. Monitor the progress of the proposed merger with CNB Bank Shares, Inc. for potential synergies and expanded market reach, as this could further enhance long-term value.

Financial Highlights

debt To Equity
N/A
revenue
$64,336,000
operating Margin
N/A
total Assets
$5,035,027,000
total Debt
$4,435,898,000
net Income
$19,765,000
eps
$0.63
gross Margin
N/A
cash Position
$155,133,000
revenue Growth
+0.3%

Revenue Breakdown

SegmentRevenueGrowth
Loans, including fees$52,818,000-1.5%
Wealth Management Fees$3,122,000+16.9%

Key Numbers

Key Players & Entities

FAQ

What were HBT Financial's net income figures for Q3 2025?

HBT Financial, Inc. reported a net income of $19.765 million for the three months ended September 30, 2025, an 8.7% increase compared to $18.180 million for the same period in 2024.

How did HBT Financial's net interest income perform in Q3 2025?

Net interest income for HBT Financial, Inc. increased by 4.7% to $49.986 million for the three months ended September 30, 2025, up from $47.733 million in the prior year's quarter.

What was the trend in HBT Financial's noninterest income for Q3 2025?

HBT Financial, Inc.'s total noninterest income significantly increased by 13.1% to $9.849 million for the three months ended September 30, 2025, compared to $8.705 million in Q3 2024.

Did HBT Financial's wealth management fees grow in Q3 2025?

Yes, wealth management fees for HBT Financial, Inc. rose to $3.122 million for the three months ended September 30, 2025, an increase of $452,000 from $2.670 million in the same period of 2024.

What is HBT Financial's current allowance for credit losses?

As of September 30, 2025, HBT Financial, Inc.'s allowance for credit losses was $41.900 million, a slight decrease from $42.044 million at December 31, 2024, indicating stable asset quality.

What are the key risks HBT Financial faces according to the 10-Q?

Key risks include the strength of local and national economies, changes in interest rates, increased competition from non-bank entities, and potential unforeseen consequences from technological changes, including artificial intelligence.

How many shares of common stock did HBT Financial have outstanding as of October 23, 2025?

As of October 23, 2025, HBT Financial, Inc. had 31,431,924 shares outstanding of its common stock, with a par value of $0.01 per share.

What is the status of HBT Financial's proposed merger with CNB Bank Shares, Inc.?

The filing mentions the possibility that stockholders of CNB Bank Shares, Inc. may not approve the merger agreement, and there is a risk that conditions to closing may not be satisfied or the transaction might be delayed or not occur at all.

How has HBT Financial's total assets changed from year-end 2024 to Q3 2025?

HBT Financial, Inc.'s total assets remained stable at $5.035 billion as of September 30, 2025, compared to $5.033 billion at December 31, 2024.

What was HBT Financial's basic earnings per share for Q3 2025?

HBT Financial, Inc. reported basic earnings per share of $0.63 for the three months ended September 30, 2025, an increase from $0.58 in the same period of 2024.

Risk Factors

Industry Context

HBT Financial operates in the highly competitive banking sector, facing pressure from traditional banks, credit unions, and increasingly, fintech companies. Key industry trends include managing interest rate volatility, adapting to evolving regulatory landscapes, and leveraging technology to enhance customer experience and operational efficiency. The proposed merger with CNB Bank Shares, Inc. indicates a trend towards consolidation within the industry.

Regulatory Implications

HBT Financial is subject to stringent federal and state regulations. Changes in banking laws, accounting policies, and responses to broader economic events like bank failures could necessitate operational adjustments and compliance efforts. The 'One Big Beautiful Bill Act' may also introduce new tax considerations.

What Investors Should Do

  1. Monitor the impact of interest rate changes on net interest margin and loan portfolio performance.
  2. Assess the progress and potential synergies of the proposed merger with CNB Bank Shares, Inc.
  3. Evaluate the continued growth in noninterest income, particularly wealth management fees.
  4. Observe trends in loan growth and asset quality, particularly the allowance for credit losses.

Key Dates

Glossary

Allowance for credit losses
An estimate of the amount of uncollectible loans in a company's loan portfolio. (A decrease in this allowance suggests improved asset quality or a more optimistic outlook on loan repayment by HBT Financial.)
Net interest income
The difference between the interest income generated by a financial institution and the interest paid out to its depositors and lenders. (An increase in net interest income is a key driver of profitability for banks like HBT Financial.)
Noninterest income
Revenue generated from sources other than interest income, such as fees for services, trading gains, and wealth management. (Growth in noninterest income, particularly from wealth management fees, diversifies revenue streams and can enhance profitability.)
Debt securities available-for-sale
Investments in debt securities that are not classified as held-to-maturity or trading securities, and are reported at fair value. (These represent a significant portion of HBT Financial's investment portfolio and their fair value can fluctuate with market conditions.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (Represents a significant intangible asset for HBT Financial, likely from past acquisitions.)

Year-Over-Year Comparison

Compared to the prior year, HBT Financial has demonstrated solid growth in net income, with an 8.7% increase in Q3 2025 to $19.765 million and a 12.7% rise year-to-date. Net interest income grew by 4.7% due to a significant 12.4% decrease in interest expense, while noninterest income surged by 13.1%, largely driven by wealth management fees. Total assets remained stable at approximately $5.035 billion. The allowance for credit losses saw a slight decrease, suggesting stable asset quality. New risks related to economic volatility and regulatory changes are highlighted, alongside the strategic consideration of the proposed merger.

Filing Stats: 4,560 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-10-31 16:10:03

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statement of Changes in Stockholders' Equity 6 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 84 Item 4.

Controls and Procedures

Controls and Procedures 86

OTHER INFORMATION

PART II. OTHER INFORMATION 87 Item 1.

Legal Proceedings

Legal Proceedings 87 Item 1A.

Risk Factors

Risk Factors 87 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 87 Item 3. Defaults Upon Senior Securities 87 Item 4. Mine Safety Disclosures 87 Item 5. Other Information 88 Item 6. Exhibits 88 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 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 Ukrai

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (dollars in thousands, except per share data) September 30, 2025 December 31, 2024 ASSETS Cash and due from banks $ 21,767 $ 29,552 Interest-bearing deposits with banks 133,366 108,140 Cash and cash equivalents 155,133 137,692 Debt securities available-for-sale, at fair value 793,730 698,049 Debt securities held-to-maturity (fair value of $ 431,493 at 2025 and $ 445,186 at 2024) 466,565 499,858 Equity securities with readily determinable fair value 3,279 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 1,432 1,586 Loans, before allowance for credit losses 3,400,029 3,466,146 Allowance for credit losses ( 41,900 ) ( 42,044 ) Loans, net of allowance for credit losses 3,358,129 3,424,102 Bank owned life insurance 24,489 23,989 Bank premises and equipment, net 69,965 66,758 Bank premises held for sale — 317 Foreclosed assets 1,007 367 Goodwill 59,820 59,820 Intangible assets, net 15,760 17,843 Mortgage servicing rights, at fair value 17,254 18,827 Investments in unconsolidated subsidiaries 1,614 1,614 Accrued interest receivable 23,575 24,770 Other assets 35,687 46,280 Total assets $ 5,035,027 $ 5,032,902 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Noninterest-bearing $ 1,034,181 $ 1,046,405 Interest-bearing 3,313,006 3,271,849 Total deposits 4,347,187 4,318,254 Securities sold under agreements to repurchase — 28,969 Federal Home Loan Bank advances 7,271 13,231 Subordinated notes — 39,553 Junior subordinated debentures issued to capital trusts 52,894 52,849 Other liabilities 28,546 35,441 Total liabilities 4,435,898 4,488,297 COMMITMENTS AND CONTINGENCIES (Note 15) Stockholders' Equity Preferred stock, $ 0.01 par value; 25,000,000 shares authorized; none issued or outstanding — — Common stock, $ 0.01

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

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