HBT Financial, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
HBT$37.00-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0000775215-25-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0000775215-26-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 179 previous paragraphs and 163 current paragraphs.
99 unchanged; 39 reworded; 24 added; 38 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 36 previous and 35 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
CNB Acquisition
Current report
On March 1, 2026, HBT Financial completed its acquisition of CNB, the holding company for CNB Bank. The acquisition of CNB further enhanced HBT Financial's footprint in the central Illinois, Chicago MSA, and suburban St. Louis markets. Prior to the acquisition, CNB operated 18 full-service branch locations which now operate as branches of Heartland Bank. The core system conversion was successfully completed in March 2026. After considering business combination accounting adjustments, CNB added total assets of $1.81 billion, total loans held for investment of $1.30 billion, and total deposits of $1.52 billion.
Current report
Total consideration consisted of 5.5 million shares of HBT Financial’s common stock and $33.8 million in cash. Based on the closing price of HBT Financial common stock of $26.96 on February 27, 2026, the aggregate consideration was approximately $182.1 million. Goodwill of $23.7 million was recorded in the acquisition. Acquisition-related expenses totaled $15.7 million during the three months ended March 31, 2026. There were no acquisition-related expenses during the three months ended March 31, 2025.
Current report
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Current report
•CNB acquisition-related expenses totaled $15.7 million during the three months ended March 31, 2026;
Current report
•Excluding CNB acquisition-related expenses, noninterest expense increased by $4.8 million, primarily reflecting higher base costs following the CNB merger, including a $2.6 million increase in employee salaries and benefits expense;
Current report
*Annualized measure.
Current report
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Current report
•CNB acquisition-related expenses totaled $15.7 million during the three months ended March 31, 2026, including $8.7 million in data processing, $4.0 million in salaries, and $2.4 million in professional fees and other noninterest expense;
Current report
•The $4.8 million increase in noninterest expenses excluding CNB acquisition-related expenses was primarily attributable to a higher base level of noninterest expense, the majority related to salaries and employee benefits; and
Current report
NM Not meaningful.
Current report
•The CNB merger added $1.81 billion in total assets, $1.30 billion in loans held for investment, and $1.52 billion in total deposits;
Current report
•Following the CNB merger, $313.1 million of the debt securities acquired from CNB were sold with the sales proceeds used to pay off higher cost sources of funding and purchase higher yield debt securities;
Current report
•Excluding the impact of the CNB merger, a $72.7 million decrease in total deposits was primarily attributable to an $88.9 million decrease in wealth management customer reciprocal money market deposits, of which $85.0 million was moved off-balance sheet due to strong levels of on-balance sheet liquidity; and
Current report
•A private placement of $85.0 million of 5.75% fixed-to-floating rate subordinated notes due in 2036 was completed in March 2026.
Current report
•A seasonal $26.3 million increase in grain elevator lines of credit within the commercial and industrial segment;
Current report
•Larger payoffs due to refinancings across the multi-family, commercial real estate - non-owner occupied, and municipal, consumer, and other segments were partially offset by increases in the construction and land development and one-to-four family residential segments.
Current report
Loans rated pass-watch or worse increased $155.5 million, or 72.5%, from December 31, 2025 to March 31, 2026, primarily attributable to loans acquired in the CNB merger, including $113.0 million of pass-watch loans, $18.0 million of special mention loans, and $20.7 million of substandard loans.
Current report
*Annualized measure.
Current report
The average balance of deposits increased 13.1% from the three months ended March 31, 2025 to the three months ended March 31, 2026 primarily due to the CNB acquisition, which added $996.5 million of non-maturity deposits and $520.4 million of time deposits on March 1, 2026.
Current report
Despite the continued shift towards higher cost deposit products, a reduction in the target range for the federal funds rate during the second half of 2025 contributed to a decrease in funding costs. As a result, total deposit costs have continued to decline.
Current report
Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations
Current report
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair value on the acquisition date. Estimating such fair values may require highly subjective assumptions or the use of a valuation specialist. In the CNB acquisition, the fair value for loans was most significant estimate and relatively small changes in assumptions used in this estimate could result in a materially different conclusion.
Current report
The fair value for loans was based on a discounted cash flow methodology that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The probability of default, loss given default, exposure at default, and prepayment assumptions are key factors in this analysis.
Removed paragraphs (38)
Previous report
Pending CNB Bank Shares, Inc. Acquisition
Previous report
On October 20, 2025, HBT Financial and CNB Bank Shares, Inc. ("CNBN"), the holding company for CNB Bank & Trust, N.A. ("CNB Bank"), jointly announced the signing of a merger agreement pursuant to which HBT Financial will acquire CNBN and CNB Bank. As of September 30, 2025, CNBN had totals assets of $1.8 billion, total loans of $1.3 billion, and total deposits of $1.5 billion. The combined company will have increased density in the central Illinois, Chicago MSA, and St. Louis MSA markets. The acquisition is expected to close in the first quarter of 2026, subject to CNBN shareholder approval, regulatory approvals, and other customary closing conditions.
Previous report
•A $2.3 million increase in net interest income, primarily attributable to lower funding costs and improved yields on debt securities which were partially offset by a decrease in loan yields;
Previous report
•A $0.4 million loss on the extinguishment of debt, associated with the early payoff of $40.0 million of subordinated notes in September 2025;
Previous report
For the nine months ended September 30, 2025, net income was $58.1 million, increasing by $6.6 million, or 12.7%, when compared to net income for the nine months ended September 30, 2024. Notable changes include the following:
Previous report
•A $49 thousand loss on sales of securities during the nine months ended September 30, 2025 compared to a $3.4 million of loss on sales of securities during the same period in 2024;
Previous report
•A $2.0 million increase in salaries and benefits expense, primarily driven by higher medical benefits expenses and annual merit increases;
Previous report
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the nine months ended September 30, 2024;
Previous report
•A $0.4 million loss on the extinguishment of debt, associated with the early payoff of $40.0 million of subordinated notes in September 2025; and
Previous report
•A $2.0 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Previous report
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Previous report
Net interest income for the three months ended September 30, 2025 was $50.0 million, increasing $2.3 million, or 4.7%, when compared to the three months ended September 30, 2024. The increase is primarily attributable to lower funding costs and improved yields on debt securities which were partially offset by a decrease in loan yields. Additionally, a $0.4 million increase in loan fees was mostly offset by a $0.3 million decrease in acquired loan discount accretion.
Previous report
Net interest margin increased to 4.13% for the nine months ended September 30, 2025, compared to 3.96% for the nine months ended September 30, 2024. The increase was primarily attributable to a decrease in funding costs, higher yields on debt securities, and a favorable shift in the mix of interest-earning assets. Additionally, the increase in the contribution of loan fees and nonaccrual interest recoveries accounted for 5 basis points of the increase in net interest margin and were partially offset by a 2 basis point decrease in the contribution from acquired loan discount accretion.
Previous report
The Company recorded a provision for credit losses of $1.7 million for the nine months ended September 30, 2025, compared to a $2.3 million provision during the nine months ended September 30, 2024. The 2025 provision for credit losses primarily reflects a $1.1 million increase in required reserves resulting from changes in qualitative factors; a $0.7 million increase in required reserves resulting from changes in economic forecasts; a $0.1 million increase in required reserves driven by changes within the portfolio; and a $0.1 million decrease in specific reserves.
Previous report
•A $0.5 million increase in wealth management fees, driven by higher values of assets under management and an increase in agricultural real estate brokerage commissions; and
Previous report
•A $0.1 million unrealized loss on equity securities included in the third quarter of 2025 results compared to a $0.1 million unrealized gain on equity securities included in the third quarter of 2024 results.
Previous report
Total noninterest income for the nine months ended September 30, 2025, was $28.3 million, an increase of $4.4 million, or 18.2%, from the nine months ended September 30, 2024. Notable changes in noninterest income include the following:
Previous report
•A $49 thousand loss on sales of securities during the nine months ended September 30, 2025 compared to a $3.4 million of loss on sales of securities during the same period in 2024;
Previous report
•A $0.4 million loss on the extinguishment of debt associated with the early payoff of $40.0 million of subordinated notes in September 2025;
Previous report
•A $0.3 million increase in benefits expense, primarily driven by higher medical benefits costs;
Previous report
•A $0.3 million increase in furniture and equipment expense, primarily due to planned maintenance and upgrades; and
Previous report
•A $0.2 million increase in data processing expense.
Previous report
Total noninterest expense for the nine months ended September 30, 2025, was $96.4 million, an increase of $3.3 million, or 3.5%, from the nine months ended September 30, 2024. Notable changes in noninterest expense include the following:
Previous report
•A $0.5 million increase in salaries expense, primarily driven by annual merit increases;
Previous report
•A $0.4 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades; and
Previous report
•A $0.4 million loss on the extinguishment of debt associated with the early payoff of $40.0 million of subordinated notes in September 2025.
Previous report
The higher effective tax rate during the third quarter of 2025 was primarily attributable to a lower proportion of tax-exempt interest income to pre-tax income during 2025 relative to 2024. The higher effective tax rate during the nine months ended September 30, 2024 was primarily attributable to an additional $0.5 million of tax expense for a deferred tax asset write-down, recognized during the second quarter of 2024, as a result of an Illinois tax change. Additionally, $0.3 million of additional tax expense was recognized during the second quarter of 2025, related to the nonrecurring reversal of a stranded tax effect included in accumulated other comprehensive income, in connection with the maturity of a derivative designated as a cash flow hedge.
Previous report
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Previous report
•A $66.1 million decrease in loans, primarily attributable to early payoffs from property sales and refinancings;
Previous report
•A $62.4 million increase in debt securities, primarily attributable to a reinvestment of cash flows from loan paydowns into debt securities and a $25.4 million increase in the fair value of debt securities available-for-sale;
Previous report
•The $40.0 million of subordinated notes outstanding at December 31, 2024 were paid off in September 2025;
Previous report
•A $28.9 million increase in deposits, primarily attributable to $45.0 million of wealth management customer reciprocal money market deposits being brought on balance sheet which was partially offset by a $20.7 million decrease in time deposits; and
Previous report
•A vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand deposit accounts.
Previous report
•A $104.7 million decrease in construction and land development loans, primarily attributable to transfers of completed projects into other categories, as well as payoffs from property sales and refinancings;
Previous report
•An $83.3 million increase in multi-family loans and a $32.2 million increase in commercial real estate – non-owner occupied loans, primarily attributable to new originations as well as completed construction projects transferred from the construction and land development category, partially offset by early payoffs.
Previous report
Loans rated pass-watch or worse decreased $16.8 million, or 8.3%, from December 31, 2024 to September 30, 2025, primarily attributable to the pay-offs across the multi-family and construction and land development segments.
Previous report
Additionally, equipment finance loans which were purchased as part of a pool of loans during 2023 contributed to heightened net charge-offs within the commercial and industrial segment.
Previous report
Average deposit balances have been relatively stable in 2025 compared to 2024, with growth in money market and time deposits being offset by decreases in savings and the planned repayment of brokered time deposits at scheduled maturities. Additionally, the vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand accounts during the first half of 2025 and $45.0 million of wealth management customer reciprocal money market deposits were brought on balance sheet at the end of the third quarter of 2025.
Reworded paragraphs (39)
Previous wording
The following is management’s discussion and analysis of the financial condition as of September 30, 2025 (unaudited), as compared with December 31, 2024, and the results of operations for the three and nine months ended September 30, 2025 and 2024 (unaudited). Management’s discussion and analysis should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025. Results of operations for the three and nine months ended September 30, 2025 and 2024 are not necessarily indicative of results to be attained for the year ended December 31, 2025, or for any other period.
Current wording
The following is management’s discussion and analysis of the financial condition as of March 31, 2026 (unaudited), as compared with December 31, 2025, and the results of operations for the three months ended March 31, 2026 and 2025 (unaudited). Management’s discussion and analysis should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 6, 2026. Results of operations for the three months ended March 31, 2026 and 2025 are not necessarily indicative of results to be attained for the year ended December 31, 2026, or for any other period.
Previous wording
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. As of September 30, 2025, the Company had total assets of $5.0 billion, loans held for investment of $3.4 billion, and total deposits of $4.3 billion.
Current wording
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois, eastern Iowa, and suburban St. Louis. As of March 31, 2026, the Company had total assets of $6.8 billion, loans held for investment of $4.7 billion, and total deposits of $5.8 billion.
Previous wording
As of September 30, 2025, our branch network included 66 full-service branch locations throughout Illinois and eastern Iowa. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:
Current wording
As of March 31, 2026, our branch network included 83 full-service branch locations throughout Illinois, eastern Iowa, and suburban St. Louis. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:
Previous wording
For the three months ended September 30, 2025, net income was $19.8 million, increasing by $1.6 million, or 8.7%, when compared to net income for the three months ended September 30, 2024. Notable changes include the following:
Current wording
For the three months ended March 31, 2026, net income was $11.2 million, decreasing by $7.9 million, or 41.3%, when compared to net income for the three months ended March 31, 2025, primarily as a result of acquisition-related expenses. Notable changes include the following:
Previous wording
•A $6.9 million increase in net interest income, primarily attributable to lower funding costs, higher yields on debt securities, and higher average loan balances;
Current wording
•A $7.7 million increase in net interest income, primarily attributable to higher average interest-earning asset balances following the CNB merger, improved yields on debt securities, and lower funding costs;
Previous wording
•A $0.9 million increase in wealth management fees, primarily driven by higher values of assets under management;
Current wording
•A $0.9 million increase in wealth management fees, primarily driven by an increase in assets under management following the CNB merger;
Previous wording
•A $0.5 million negative mortgage servicing rights fair value adjustment included in the third quarter of 2025 results compared to a $1.5 million negative mortgage servicing rights fair value adjustment included in the third quarter 2024 results;
Current wording
•A $0.2 million positive mortgage servicing rights ("MSR") fair value adjustment included in the 2026 results, compared to a $0.3 million negative MSR fair value adjustment included in the 2025 results; and
Previous wording
•A $0.6 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Current wording
•A $2.6 million decrease in income tax expense, primarily due to a decrease in pre-tax income as a result of CNB acquisition-related expenses.
Previous wording
The following tables set forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.
Current wording
The following table sets forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.
Previous wording
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Current wording
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
Previous wording
(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Current wording
(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
Previous wording
Net interest income for the nine months ended September 30, 2025 was $148.4 million, increasing $6.9 million, or 4.9%, when compared to the nine months ended September 30, 2024. The increase is primarily attributable to lower funding costs, higher yields on debt securities, and higher average loan balances. Additionally, a $1.4 million increase in loan fees and nonaccrual interest recoveries was partially offset by a $0.4 million decrease in acquired loan discount accretion.
Current wording
Net interest income for the three months ended March 31, 2026 was $56.4 million, increasing $7.7 million, or 15.8%, when compared to the three months ended March 31, 2025. The increase is primarily attributable to higher average interest-earning asset balances following the CNB merger, improved yields on debt securities, and lower funding costs. Additionally, a $0.4 million decrease in nonaccrual interest recoveries was mostly offset by a $0.3 million increase in loan fees.
Previous wording
Net interest margin increased to 4.13% for the three months ended September 30, 2025, compared to 3.98% for the three months ended September 30, 2024. The increase was primarily attributable to lower funding costs and higher yields on debt securities. Additionally, a 3 basis point increase in the contribution of loan fees to net interest margin was offset by a 3 basis point decrease in the contribution of acquired loan discount accretion to net interest margin when comparing each of the three months ended September 30, 2025 and 2024.
Current wording
Net interest margin increased to 4.20% for the three months ended March 31, 2026, compared to 4.12% for the three months ended March 31, 2025. The increase was primarily attributable to improved yields on debt securities and lower funding costs. Additionally, a 3 basis point decrease in the contribution of nonaccrual interest recoveries was mostly offset by a 1 basis point increase in the contribution of loan fees.
Previous wording
In early 2024, our net interest margin was relatively stable, with increases in our loans and debt securities yields being mostly offset by increases in funding costs. In September 2024, the Federal Open Market Committee ("FOMC") began lowering interest rates, with the target range for the federal funds rate decreasing by 100 basis points to a range of 4.25% to 4.50% by the end of 2024. In September 2025, the FOMC further reduced the target range for the federal funds rate by 25 basis points to a range of 4.00% to 4.25%. These changes have contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, driving our net interest margin higher during the first three quarters of 2025, relative to 2024.
Current wording
From September 2025 to December 2025, the Federal Open Market Committee ("FOMC") lowered the target range for the federal funds rate with three 25 basis point reductions, setting a target range of 3.50% to 3.75% by the end of 2025. These reductions contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, resulting in a fairly stable net interest margin throughout 2025. Our net interest margin increased in the first quarter of 2026 driven primarily by higher asset yields and the sale of the vast majority of the CNB securities portfolio, with the proceeds used to pay off higher cost sources of funding and purchase higher yield debt securities.
Previous wording
The Company recorded a provision for credit losses of $0.6 million during the three months ended September 30, 2025, compared to a $0.6 million provision during the three months ended September 30, 2024. The third quarter of 2025 provision for credit losses primarily reflects a $1.2 million increase in required reserves driven by increased loan balances and changes within the portfolio; a $0.3 million increase in specific reserves; a $0.6 million decrease in required reserves resulting from changes in qualitative factors; and a $0.3 million decrease in required reserves driven by changes in the economic forecast.
Current wording
The Company recorded a negative provision for credit losses of $0.2 million for the three months ended March 31, 2026, compared to a $0.6 million provision during the three months ended March 31, 2025. The 2026 provision for credit losses primarily reflects a $0.3 million decrease in specific reserves, partially offset by changes within the loan portfolio.
Previous wording
The provision for credit losses is highly dependent on current and forecast economic conditions. Potential deterioration of economic conditions may lead to higher credit losses and adversely impact our financial condition and results of operations. The economic forecasts utilized in estimating the allowance for credit losses on loans and unfunded lending-related commitments include the unemployment rate and changes in GDP as macroeconomic variables, although other economic metrics are considered on a qualitative basis.
Current wording
The provision for credit losses is highly dependent on current and forecast economic conditions. Potential deterioration of economic conditions may lead to higher credit losses and adversely impact our financial condition and results of operations. The economic forecasts utilized in estimating the allowance for credit losses on loans and unfunded lending-related commitments include the unemployment rate and changes in GDP as macroeconomic variables, although other economic metrics and trends are considered on a qualitative basis.
Previous wording
Total noninterest income for the three months ended September 30, 2025, was $9.8 million, an increase of $1.1 million, or 13.1%, from the three months ended September 30, 2024. Notable changes in noninterest income include the following:
Current wording
Total noninterest income for the three months ended March 31, 2026, was $10.9 million, an increase of $1.6 million, or 17.6%, from the three months ended March 31, 2025. Notable changes in noninterest income include the following:
Previous wording
•A $0.9 million increase in wealth management fees, primarily driven by higher values of assets under management; and
Current wording
•A $0.9 million increase in wealth management fees, primarily driven by higher values of assets under management and an increase in assets under management following the CNB merger;
Previous wording
•A $0.5 million negative mortgage servicing rights fair value adjustment included the third quarter of 2025 results, primarily reflecting the net decrease in the servicing portfolio due to payments and principal reductions, compared to a $1.5 million negative mortgage servicing rights fair value adjustment included in the third quarter 2024 results;
Current wording
•A $0.2 million positive MSR fair value adjustment included in the 2026 results, compared to a $0.3 million negative MSR fair value adjustment included in the 2025 results; and
Previous wording
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the 2024 results.
Current wording
•A $0.2 million impairment loss on bank premises related to the relocation of a branch was recognized in the 2026 results which is absent from the 2025 results.
Previous wording
Total noninterest expense for the three months ended September 30, 2025, was $32.5 million, an increase of $1.2 million, or 3.8%, from the three months ended September 30, 2024. Notable changes in noninterest expense include the following:
Current wording
Total noninterest expense for the three months ended March 31, 2026, was $52.4 million, an increase of $20.5 million, or 64.2%, from the three months ended March 31, 2025. Notable changes in noninterest expense include the following:
Previous wording
•A $1.5 million increase in employee benefits expense, primarily driven by higher medical benefits cost;
Current wording
•A $0.6 million increase in employee benefits expense, primarily driven by higher medical benefits cost.
Previous wording
During the three months ended September 30, 2025 and 2024, we recorded income tax expense of $7.0 million, or an effective tax rate of 26.1%, and $6.3 million, or an effective tax rate of 25.8%, respectively. During the nine months ended September 30, 2025 and 2024, we recorded income tax expense of $20.5 million, or an effective tax rate of 26.1%, and $18.5 million, or an effective tax rate of 26.4%, respectively.
Current wording
During the three months ended March 31, 2026 and 2025, we recorded income tax expense of $3.9 million, or an effective tax rate of 25.6%, and $6.4 million, or an effective tax rate of 25.2%, respectively.
Previous wording
Loans, before allowance for credit losses were $3.40 billion at September 30, 2025, a decrease of $66.1 million, or 1.9%, from December 31, 2024. Notable changes include the following:
Current wording
Loans, before allowance for credit losses were $4.69 billion at March 31, 2026, an increase of $1.23 billion, or 35.6%, from December 31, 2025. Excluding the impact of the CNB merger, loans decreased by $65.6 million with the following notable changes:
Previous wording
•A $12.0 million reduction on two lines of credit that funded shortly before and paid off after December 31, 2024; and
Current wording
•A $8.0 million reduction on two commercial and industrial lines of credit that funded shortly before and paid off after December 31, 2025;
Previous wording
Multi-family loans totaled $514.8 million as of September 30, 2025, and are primarily made based on projected cash flows from the rental of the underlying collateral. As of September 30, 2025, multi-family loans had a weighted average LTV of 56%, based on the most recent appraisals available, which are generally obtained at the time of origination.
Current wording
Multi-family loans totaled $638.7 million as of March 31, 2026, and are primarily made based on projected cash flows from the rental of the underlying collateral. As of March 31, 2026, multi-family loans had a weighted average LTV of 58%, based on the most recent appraisals available, which are generally obtained at the time of origination.
Previous wording
Construction and land development loans totaled $269.9 million as of September 30, 2025. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or owner occupied upon completion. Construction and land development loans are primarily based on projected cash flows from the rental or sale of the underlying collateral, or based on the identified cash flows of the borrower.
Current wording
Construction and land development loans totaled $425.3 million as of March 31, 2026. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or owner occupied upon completion. Construction and land development loans are primarily based on projected cash flows from the rental or sale of the underlying collateral, or based on the identified cash flows of the borrower.
Previous wording
Management’s disciplined approach to credit risk management is exercised through portfolio diversification, robust underwriting policies, and routine loan monitoring practices in order to identify and mitigate any credit weakness as early as possible. Management continually monitors and evaluates commercial real estate concentrations by property class, industry, and relative to the Bank’s regulatory capital to remain in line with board-established limits and adapt to changing industry conditions. A centralized credit underwriting group, independent of the originating lender, evaluates a vast majority of the commercial exposures over $750 thousand annually, if not more frequently, through a standardized credit review process to ensure uniform application of policies and procedures as well as analyze credit performance. All loans require appropriate internal approval, with a centralized credit approval group reviewing the vast majority of exposures over $500 thousand. Additionally, more than 45% of loan commitments are reviewed on a rolling 24 month basis between a robust internal review process and an annual third-party review of a sample of the portfolio.
Current wording
Management’s disciplined approach to credit risk management is exercised through portfolio diversification, robust underwriting policies, and routine loan monitoring practices in order to identify and mitigate any credit weakness as early as possible. Management continually monitors and evaluates commercial real estate concentrations by property class, industry, and relative to the Bank’s regulatory capital to remain in line with board-established limits and adapt to changing industry conditions. A centralized credit underwriting group, independent of the originating lender, evaluates a vast majority of the commercial exposures over $750 thousand annually, if not more frequently, through a standardized credit review process to ensure uniform application of policies and procedures as well as analyze credit performance. All loans require appropriate internal approval, with a centralized credit approval group reviewing the vast majority of exposures over $1 million. Additionally, more than 45% of loan commitments are reviewed on a rolling 24 month basis between a robust internal review process and an annual third-party review of a sample of the portfolio.
Previous wording
Total nonperforming assets were $8.6 million at September 30, 2025, an increase of 7.8%, when compared to $8.0 million at December 31, 2024. Additionally, of the $7.6 million of nonperforming loans held as of September 30, 2025, $1.8 million are either wholly or partially guaranteed by the U.S. Government. The $0.6 million increase in nonperforming assets from December 31, 2024 was primarily attributable to an increase in foreclosed assets.
Current wording
Total nonperforming assets were $14.4 million at March 31, 2026, an increase of 65.6% when compared to $8.7 million at December 31, 2025. The $5.7 million increase in nonperforming assets from December 31, 2025 was primarily attributable to $6.1 million of nonaccrual loans acquired in the CNB merger, with the majority in the construction and land development segment. Additionally, of the $13.2 million of nonperforming loans held as of March 31, 2026, $2.3 million are either wholly or partially guaranteed by the U.S. Government.
Previous wording
The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of credit losses, we also recognize that substantial federal economic stimulus during the COVID-19 pandemic and the relatively stable economic conditions after the pandemic have also contributed to reduced credit losses.
Current wording
The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of credit losses, we also recognize that the relatively stable economic conditions after the COVID-19 pandemic have also contributed to reduced credit losses.
Previous wording
As of September 30, 2025 and December 31, 2024, the Bank’s uninsured deposits were estimated to be $964.5 million and $949.4 million, respectively.
Current wording
As of March 31, 2026 and December 31, 2025, the Bank’s uninsured deposits were estimated to be $1.34 billion and $928.7 million, respectively.
Previous wording
Furthermore, the Bank could utilize brokered deposits as an additional source of liquidity, as needed.
Current wording
Furthermore, the Bank has the option to utilize brokered deposits as an additional source of liquidity, as needed.
Previous wording
The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of September 30, 2025, the Holding Company had cash and cash equivalents of $10.7 million.
Current wording
The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of March 31, 2026, the Holding Company had cash and cash equivalents of $28.7 million.
Previous wording
The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. Dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Management believes that such limitations will not impact the Holding Company’s ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended September 30, 2025 and 2024, the Bank paid $25.0 million and $8.0 million in dividends to the Holding Company, respectively. During the nine months ended September 30, 2025 and 2024, the Bank paid $62.5 million and $26.0 million in dividends to the Holding Company, respectively.
Current wording
The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. Dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Management believes that such limitations will not impact the Holding Company’s ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended March 31, 2026 and 2025, the Bank paid $56.0 million and $7.5 million in dividends to the Holding Company, respectively. Additionally, the private placement of $85.0 million of subordinated notes completed on March 11, 2026 bolstered the cash reserves at the Holding Company with $60.0 million contributed to the Bank during the first quarter of 2026.
Previous wording
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on debt, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended September 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $1.3 million and $1.5 million, respectively, and other operating expenses of $1.5 million and $1.0 million, respectively. During the nine months ended September 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $4.1 million and $4.3 million, respectively, and other operating expenses of $3.7 million and $3.1 million, respectively. Additionally, the Holding Company paid $6.7 million and $6.0 million of dividends to stockholders during the three months ended September 30, 2025 and 2024, respectively, and paid $20.0 million and $18.1 million of dividends to stockholders during the nine months ended September 30, 2025 and 2024, respectively.
Current wording
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on debt, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended March 31, 2026 and 2025, holding company operating expenses consisted of interest expense of $1.1 million and $1.4 million, respectively, and other operating expenses of $3.5 million and $1.0 million, respectively. Additionally, the Holding Company paid $7.3 million and $6.7 million of dividends to stockholders during the three months ended March 31, 2026 and 2025, respectively.
Previous wording
During 2024, the Company paid quarterly cash dividends of $0.19 per share. In January 2025, the Company announced an increase of $0.02 and paid quarterly cash dividends of $0.21 during the first three quarters of 2025.
Current wording
During 2025, the Company paid quarterly cash dividends of $0.21 per share. In January 2026, the Company announced an increase of $0.02 and paid a $0.23 per share dividend during the first quarter of 2026.
Previous wording
Under the Company's stock repurchase program, the Company repurchased 39,631 shares of its common stock at a weighted average price of $25.36 during the three months ended September 30, 2025. The Company’s Board of Directors have authorized the repurchase of up to $15.0 million of its common stock under its stock repurchase program in effect until January 1, 2026. As of September 30, 2025, the Company had $11.1 million remaining under the current stock repurchase authorization.
Current wording
Under the Company's stock repurchase program, the Company repurchased 602,855 shares of its common stock at a weighted average price of $25.84 during the three months ended March 31, 2026. The Company’s Board of Directors has authorized the repurchase of up to $30.0 million of its common stock under its stock repurchase program in effect until January 1, 2027. As of March 31, 2026, the Company had $14.4 million remaining under the current stock repurchase authorization.
Previous wording
Critical accounting estimates are those that are critical to the portrayal and understanding of the Company’s financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company’s critical accounting estimates. The following accounting estimate could be deemed critical:
Current wording
Critical accounting estimates are those that are critical to the portrayal and understanding of the Company’s financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company’s critical accounting estimates. The following accounting estimates could be deemed critical:
Previous wording
(1)Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.
Current wording
(1)Assumes a federal income tax rate of 21% and a state tax rate of 9.5%, and excludes non-deductible acquisition expenses.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
Previous report — wording carried elsewhere
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
Previous report — wording carried elsewhere
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.