HBT Financial (HBT) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $19.1 million ($0.60 per diluted share), up 25% year-over-year, with adjusted net income of $19.3 million ($0.61 per share).

• Tangible book value per share rose 4.3% from December 31, 2024 and 17.0% year-over-year, reaching $15.43.

• Asset quality remained strong: nonperforming assets at 0.11% of total assets and net charge-offs at 0.05% of average loans.

• The company operates 66 branches in Illinois and eastern Iowa, maintaining a leading deposit share in central Illinois markets.

• Total assets reached $5.1 billion, loans held for investment were $3.5 billion, and total deposits were $4.4 billion as of March 31, 2025.

Financial highlights

• Net interest income for Q1 2025 was $48.7 million, up 2.8% sequentially and 4.3% year-over-year, with net interest margin increasing to 4.12%.

• Noninterest income was $9.3 million, up 65.4% year-over-year due to absence of prior losses on securities sales.

• Noninterest expense was $31.9 million, up 2.1% year-over-year, mainly from higher salaries and benefits.

• Efficiency ratio (tax-equivalent) improved to 53.3% in Q1 2025, down from 57.78% in Q1 2024.

• Average loan balances grew by 2.2% quarter-over-quarter; loan yields increased to 6.39%.

Outlook and guidance

• Net interest income expected to rise slightly in Q2 2025 due to stable NIM and increased day count, despite lower projected loan balances.

• Deposit balances anticipated to remain flat in Q2 2025.

• Noninterest income projected to increase slightly; noninterest expense expected between $31 million and $33 million per quarter in 2025.

• Management expects 2025 to be a solid year despite economic uncertainty, citing strong credit discipline and profitability.

• Additional $0.3 million tax expense expected in Q2 2025 due to reversal of a stranded tax effect.