HBT Financial (HBT) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $19.2M ($0.61 per diluted share), up 6.4% year-over-year; adjusted net income was $19.8M ($0.63 per diluted share).

• Tangible book value per share rose 3.8% sequentially and 17.4% year-over-year to $16.02.

• Asset quality remained strong with nonperforming assets at 0.13% of total assets and net charge-offs at 0.12% of average loans annualized.

• Total assets were $5.0B, loans $3.3B, and deposits $4.3B as of June 30, 2025.

• Return on average assets (ROAA) was 1.53%; adjusted ROAA was 1.58%.

Financial highlights

• Net interest income for Q2 2025 was $49.7M, up $2.6M year-over-year; net interest margin increased to 4.14% (tax-equivalent: 4.19%).

• Noninterest income for Q2 2025 was $9.1M, down 4.9% year-over-year, mainly due to negative mortgage servicing rights fair value adjustment.

• Noninterest expense was $31.9M, up 4.6% year-over-year, driven by higher benefits and occupancy costs.

• Efficiency ratio (tax-equivalent basis) was 53.0% for 1H25 and 53.10% for Q2 2025.

• Tangible common equity to tangible assets was 10.21% as of June 30, 2025.

Outlook and guidance

• Loan growth expected in the 2%–5% annualized range for Q3 2025; deposit balances projected to remain flat.

• Net interest margin anticipated to remain stable; noninterest income and expense expected in line with Q2 2025.

• Asset quality expected to remain solid, with possible normalization if the economy softens.

• Stock repurchase program to continue opportunistically; $12.1M available through January 2026.

• Management expresses confidence in capital levels and operational structure to support potential acquisitions.