HBT Financial (HBT) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $18.2 million ($0.57 per diluted share), down 7.8% year-over-year; adjusted net income was $19.2 million ($0.61 per diluted share).

• Total assets were $5.0 billion as of September 30, 2024, with loans of $3.4 billion and deposits of $4.3 billion, reflecting a stable Midwest banking footprint.

• The Town and Country acquisition in 2023 expanded the company's presence and contributed to higher year-to-date results; integration was completed in April 2023.

• No acquisition-related expenses were incurred in 2024, compared to $13.7 million in the prior year period.

• Tangible book value per share increased 23.3% year-over-year to $14.55.

Financial highlights

• Q3 2024 net interest income was $47.7 million, down 1.1% year-over-year, mainly due to higher funding costs.

• Net interest margin for Q3 2024 was 3.98%–4.03%, down from 4.07%–4.13% a year ago; nine-month margin was 3.96%.

• Noninterest income for Q3 2024 was $8.7 million, down 8.3% year-over-year, impacted by a $1.5 million negative mortgage servicing rights adjustment.

• Noninterest expense for Q3 2024 was $31.3 million, up 2.1% year-over-year, driven by higher salaries, benefits, occupancy, and marketing.

• Total loans outstanding were $3.37 billion and total deposits were $4.28 billion at quarter-end.

Outlook and guidance

• Management expects the recent federal funds rate decrease and potential future cuts may put downward pressure on net interest margin.

• The company anticipates continued stabilization in deposit balances and funding costs, with ongoing focus on digital banking investments.

• No material commitments for capital expenditures or known trends likely to impact liquidity or capital resources.

• Management continues to monitor the loan portfolio closely for stress but reports no significant signs of deterioration.

• Capital ratios are strong and can support future organic growth or acquisitions.