HBT Financial (HBT) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $19.8 million ($0.63 per diluted share), up 8.7% year-over-year, with adjusted net income of $20.5 million ($0.65 per diluted share), reflecting strong profitability and tangible book value growth.

• Tangible book value per share increased by $0.62 to $16.64, up 3.9% from Q2 2025 and 14.4% year-over-year.

• Total assets reached $5.0 billion as of September 30, 2025, with loans of $3.4 billion and deposits of $4.3 billion, reflecting a stable balance sheet and strong market presence in Illinois and Iowa.

• Announced a definitive agreement to acquire CNB Bank Shares, Inc., expected to close in Q1 2026, expanding market density and presence in key regions.

Financial highlights

• Net interest income for Q3 2025 was $50.0 million, up 0.7% sequentially and 4.7% year-over-year, with net interest margin (tax-equivalent) at 4.18%.

• Noninterest income rose 13.1% year-over-year, mainly from higher wealth management fees and lower securities losses.

• Noninterest expense increased 3.8% year-over-year, primarily due to higher employee benefits, salaries, and a $0.4 million loss on debt extinguishment.

• Cost of funds and total deposits remained stable at 1.29% and 1.19%, respectively.

• Effective tax rate decreased to 26.1% from 27.0% in Q2 2025.

Outlook and guidance

• Management expects stable net interest income and margin in Q4 2025, with slight loan and deposit growth and continued solid asset quality.

• Loan pipelines are in line with Q3 2025, with expected loan growth in the low single digits annualized for Q4 2025.

• The CNB Bank Shares, Inc. acquisition is expected to close in Q1 2026, enhancing scale and market reach.

• Management is prepared for various economic environments, citing strong credit discipline and profitability.

• Asset quality expected to remain solid, though a return to more normalized metrics and charge-offs may occur if the economy softens.