HBT Financial (HBT) investor relations material

Executive summary

• Net income for Q1 2026 was $11.2 million ($0.34 per diluted share), down 41.3% year-over-year, mainly due to $15.7 million in acquisition-related expenses; adjusted net income was $22.6 million ($0.68 per diluted share).

• Completed the acquisition of CNB Bank Shares, Inc. on March 1, 2026, adding $1.8 billion in assets, $1.3 billion in loans, and $1.5 billion in deposits, expanding the footprint in central Illinois, Chicago MSA, and St. Louis MSA.

• Total assets grew 33.6% to $6.77 billion as of March 31, 2026, with loans up 35.6% to $4.69 billion and deposits up 33.1% to $5.80 billion compared to December 31, 2025.

• Tangible book value per share decreased 1.1% from December 31, 2025, but increased 10.2% year-over-year to $17.01.

• Asset quality remained strong with nonperforming assets at 0.21% of total assets and net charge-offs at 0.08% of average loans (annualized).

Financial highlights

• Net interest income rose to $56.4 million, up 15.8% year-over-year and 11.6% sequentially, driven by higher average earning assets post-CNB acquisition.

• Net interest margin increased to 4.20% (tax-equivalent NIM at 4.25%), up 8–9 basis points from Q4 2025 and Q1 2025.

• Noninterest income rose 17.6% year-over-year to $10.9 million, mainly from increased wealth management fees and positive MSR adjustments.

• Noninterest expense increased by $4.6 million sequentially and 64.2% year-over-year to $52.4 million, primarily due to acquisition costs and higher salaries.

• Efficiency ratio (tax-equivalent) was 75.83% (GAAP) and 52.68% (adjusted).

Outlook and guidance

• Loan balances expected to be flat to up low-single digits in Q2 2026 and up low-single digits in 2H26.

• NIM expected to decline slightly in Q2 2026, then gradually increase in 2H26; management expects stable NIM with potential downward pressure if market rates decline.

• Noninterest income projected between $11.5 million and $13 million per quarter for the rest of 2026; noninterest expense expected between $41 million and $43 million per quarter.

• Asset quality expected to remain solid, though metrics may deteriorate slightly if the economy softens.

• Capital and liquidity positions are strong, supporting organic growth, further M&A, and opportunistic buybacks.