HBT Financial, Inc. (HBT)
SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks
SEC company page: https://www.sec.gov/edgar/browse/?CIK=775215. Latest filing source: 0000775215-26-000025.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 255,784,000 | USD | 2025 | 2026-03-06 |
| Net income | 77,008,000 | USD | 2025 | 2026-03-06 |
| Assets | 5,071,390,000 | USD | 2025 | 2026-03-06 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000775215.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 127,593,000 | 137,432,000 | 143,735,000 | 124,065,000 | 128,223,000 | 153,054,000 | 228,999,000 | 251,700,000 | 255,784,000 | |
| Net income | 56,103,000 | 63,799,000 | 66,865,000 | 36,845,000 | 56,271,000 | 56,456,000 | 65,842,000 | 71,780,000 | 77,008,000 | |
| Diluted EPS | 3.10 | 3.54 | 3.33 | 1.34 | 2.02 | 1.95 | 2.07 | 2.26 | 2.44 | |
| Operating cash flow | 72,082,000 | 79,994,000 | 89,092,000 | 31,255,000 | 43,023,000 | 72,586,000 | 65,829,000 | 89,372,000 | 85,070,000 | |
| Dividends paid | 57,069,000 | 42,621,000 | 224,956,000 | 16,518,000 | 16,753,000 | 18,584,000 | 21,873,000 | 24,183,000 | 26,609,000 | |
| Share buybacks | 907,000 | 4,906,000 | 4,783,000 | 8,907,000 | 4,423,000 | 4,505,000 | ||||
| Assets | 3,249,569,000 | 3,245,103,000 | 3,666,567,000 | 4,314,254,000 | 4,286,734,000 | 5,073,170,000 | 5,032,902,000 | 5,071,390,000 | ||
| Liabilities | 2,909,173,000 | 2,912,185,000 | 3,302,650,000 | 3,902,373,000 | 3,913,102,000 | 4,583,674,000 | 4,488,297,000 | 4,455,892,000 | ||
| Stockholders' equity | 326,246,000 | 323,916,000 | 340,396,000 | 332,918,000 | 363,917,000 | 411,881,000 | 373,632,000 | 489,496,000 | 544,605,000 | 615,498,000 |
| Cash and cash equivalents | 186,879,000 | 283,971,000 | 312,451,000 | 409,268,000 | 114,159,000 | 141,252,000 | 137,692,000 | 122,269,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 43.97% | 46.42% | 46.52% | 29.70% | 43.89% | 36.89% | 28.75% | 28.52% | 30.11% | |
| Return on equity | 17.32% | 18.74% | 20.08% | 10.12% | 13.66% | 15.11% | 13.45% | 13.18% | 12.51% | |
| Return on assets | 1.96% | 2.06% | 1.00% | 1.30% | 1.32% | 1.30% | 1.43% | 1.52% | ||
| Liabilities / equity | 8.55 | 8.75 | 9.08 | 9.47 | 10.47 | 9.36 | 8.24 | 7.24 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000775215.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 0.49 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 0.54 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.30 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 56,768,000 | 18,473,000 | 0.58 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 59,041,000 | 19,715,000 | 0.62 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 61,411,000 | 18,446,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 61,961,000 | 15,258,000 | 0.48 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 62,824,000 | 18,070,000 | 0.57 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 64,117,000 | 18,180,000 | 0.57 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 62,798,000 | 20,272,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 63,138,000 | 19,075,000 | 0.60 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 63,919,000 | 19,230,000 | 0.61 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 64,336,000 | 19,765,000 | 0.63 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 64,391,000 | 18,938,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 71,839,000 | 11,200,000 | 0.34 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0000775215-26-000055.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to HBT Financial, Inc. and its subsidiaries.
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.
OVERVIEW
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.
Market Area
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:
March 31, 2026
December 31, 2025
(dollars in thousands)
Loans
Deposits
Loans
Deposits
Central Illinois
$
1,897,133
$
3,817,251
$
1,428,580
$
2,898,046
Chicago MSA
2,033,019
1,684,119
1,522,963
1,244,319
Suburban St. Louis
399,440
185,160
140,863
107,088
Iowa
357,359
116,918
363,803
109,810
Total
$
4,686,951
$
5,803,448
$
3,456,209
$
4,359,263
CNB Acquisition
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.
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.
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RESULTS OF OPERATIONS
Overview of Recent Financial Results
Three Months Ended March 31,
(dollars in thousands, except per share amounts)
2026
2025
Total interest and dividend income
$
71,839
$
63,138
Total interest expense
15,452
14,430
Net interest income
56,387
48,708
Provision for credit losses
(156)
576
Net interest income after provision for credit losses
56,543
48,132
Total noninterest income
10,944
9,306
Total noninterest expense
52,437
31,935
Income before income tax expense
15,050
25,503
Income tax expense
3,850
6,428
Net income
$
11,200
$
19,075
Adjusted net income (1)
$
22,610
$
19,253
Pre-provision net revenue (1)
$
14,894
$
26,079
Pre-provision net revenue less net charge-offs (1)
14,136
25,650
Adjusted pre-provision net revenue (1)
30,569
26,328
Adjusted pre-provision net revenue less net charge-offs (1)
29,811
25,899
Share and Per Share Information
Earnings per share - diluted
$
0.34
$
0.60
Adjusted earnings per share - diluted (1)
0.68
0.61
Weighted average shares of common stock outstanding
33,180,009
31,584,989
Summary Ratios
Net interest margin *
4.20
%
4.12
%
Net interest margin (tax-equivalent basis) * (1) (2)
4.25
4.16
Yield on loans *
6.28
6.39
Yield on interest-earning assets *
5.35
5.34
Cost of total deposits *
1.17
1.21
Cost of funds *
1.25
1.32
Efficiency ratio
76.56
%
53.85
%
Efficiency ratio (tax-equivalent basis) (1) (2)
75.83
53.35
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)
52.68
53.12
Return on average assets *
0.80
%
1.54
%
Return on average stockholders' equity *
6.77
13.95
Return on average tangible common equity * (1)
7.87
16.20
Adjusted return on average assets * (1)
1.60
%
1.55
%
Adjusted return on average stockholders' equity * (1)
13.67
14.08
Adjusted return on average tangible common equity * (1)
15.89
16.36
_________________________________________________
* Annualized measure.
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
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Table of Contents
Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
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:
•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;
•CNB acquisition-related expenses totaled $15.7 million during the three months ended March 31, 2026;
•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;
•A $0.9 million increase in wealth management fees, primarily driven by an increase in assets under management following the CNB merger;
•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
•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.
Net Interest Income
Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Net interest margin, which is expressed as the percentage of net interest income to average interest-earning assets, is utilized to measure and explain changes in net interest income.
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.
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Table of Contents
Three Months Ended
March 31, 2026
March 31, 2025
(dollars in thousands)
Average Balance
Interest
Yield/Cost *
Average Balance
Interest
Yield/Cost *
ASSETS
Loans
$
3,890,388
$
60,198
6.28
%
$
3,460,906
$
54,537
6.39
%
Debt securities
1,375,875
10,202
3.01
1,204,424
7,405
2.49
Deposits with banks
163,761
1,276
3.16
120,014
1,065
3.60
Other
14,389
163
4.60
12,677
131
4.19
Total interest-earning assets
5,444,413
$
71,839
5.35
%
4,798,021
$
63,138
5.34
%
Allowance for credit losses
(48,362)
(42,061)
Noninterest-earning assets
317,393
276,853
Total assets
$
5,713,444
$
5,032,813
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand
$
1,223,982
$
1,931
0.64
%
$
1,120,608
$
1,453
0.53
%
Money market
906,663
4,448
1.99
807,728
4,397
2.21
Savings
671,852
704
0.43
569,494
370
0.26
Time
940,019
7,026
3.03
784,099
6,719
3.48
Total interest-bearing deposits
3,742,516
14,109
1.53
3,281,929
12,939
1.60
Securities sold under agreements to repurchase
2,902
16
2.21
8,754
22
1.02
Borrowings
28,886
209
2.94
12,890
109
3.41
Subordinated notes
19,781
278
5.70
39,563
470
4.82
Junior subordinated debentures issued to capital trusts
52,916
840
6.44
52,856
890
6.83
Total interest-bearing liabilities
3,847,001
$
15,452
1.63
%
3,395,992
$
14,430
1.72
%
Noninterest-bearing deposits
1,150,594
1,045,733
Noninterest-bearing liabilities
45,282
36,373
Total liabilities
5,042,877
4,478,098
Stockholders' Equity
670,567
554,715
Total liabilities and stockholders’ equity
$
5,713,444
$
5,032,813
Net interest income/Net interest margin (1)
$
56,387
4.20
%
$
48,708
4.12
%
Tax-equivalent adjustment (2)
649
0.05
545
0.04
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$
57,036
4.25
%
$
49,253
4.16
%
Net interest rate spread (4)
3.72
%
3.62
%
Net interest-earning assets (5)
$
1,597,412
$
1,402,029
Ratio of interest-earning assets to interest-bearing liabilities
1.42
1.41
Cost of total deposits
1.17
%
1.21
%
Cost of funds
1.25
1.32
_________________________________________________
*Annualized measure.
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
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Table of Contents
The following table sets forth the components of loan interest income and their contributions to the total loan yield.
Three Months Ended March 31,
2026
2025
(dollars in thousands)
Interest
Yield
Contribution *
Interest
Yield
Contribution *
Contractual interest
$
57,243
5.97
%
$
51,435
6.03
%
Loan fees
1,699
0.18
1,363
0.16
Accretion of acquired loan discounts
992
0.10
1,112
0.13
Nonaccrual interest recoveries
264
0.03
627
0.07
Total loan interest income
$
60,198
6.28
%
$
54,537
6.39
%
________________________
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to HBT Financial, Inc. and its subsidiaries.
Management’s discussion and analysis should be read in conjunction with the following parts of this Annual Report on Form 10-K: Part I, Item 1 “Business”, Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk”, and Part II, Item 8 “Financial Statements and Supplementary Data”. Detailed discussion and analysis of the financial condition and results of operation for 2025 as compared to 2024 can be found below. Detailed discussion and analysis of the financial condition and results of operation for 2024 as compared to 2023 can be found in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
OVERVIEW
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 December 31, 2025, the Company had total assets of $5.1 billion, loans held for investment of $3.5 billion, and total deposits of $4.4 billion.
Market Area
As of December 31, 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:
December 31, 2025
December 31, 2024
(dollars in thousands)
Loans
Deposits
Loans
Deposits
Central
$
1,569,443
$
3,005,134
$
1,676,842
$
2,984,820
Chicago MSA
1,522,963
1,244,319
1,443,777
1,218,098
Illinois
3,092,406
4,249,453
3,120,619
4,202,918
Iowa
363,803
109,810
345,527
115,336
Total
$
3,456,209
$
4,359,263
$
3,466,146
$
4,318,254
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CNB Bank Shares, Inc. Acquisition
On March 1, 2026, HBT Financial completed its acquisition of CNB, the holding company for CNB Bank. The combined company will have increased density in the central Illinois, Chicago MSA, and St. Louis MSA markets. Prior to the acquisition, CNB operated 18 full-service branch locations which now operate as branches of Heartland Bank. The core system conversion is expected to occur in March 2026.
As of December 31, 2025, CNB had total assets of $1.8 billion, total loans of $1.3 billion, and total deposits of $1.5 billion. This acquisition is a subsequent event and the financial results of CNB are not recognized in this Form 10-K.
Total consideration consisted of 5.5 million shares of HBT Financial's common stock and $34 million in cash. Based upon the closing price of HBT Financial common stock of $26.96 on February 27, 2026, the aggregate consideration was approximately $182 million. Acquisition-related expenses recognized during the year ended December 31, 2025 totaled $1.0 million.
Town and Country Financial Corporation Acquisition
On February 1, 2023, HBT Financial completed its acquisition of Town and Country, the holding company for Town and Country Bank. The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois and expanded our footprint into metro-east St. Louis. At the time of acquisition, Town and Country Bank operated 10 full-service branch locations which began operating as branches of Heartland Bank. The core system conversion was successfully completed in April 2023. After considering business combination accounting adjustments, Town and Country added total assets of $937.2 million, total loans held for investment of $635.4 million, and total deposits of $720.4 million.
Total consideration consisted of 3.4 million shares of HBT Financial’s common stock and $38.0 million in cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate consideration was approximately $109.4 million. Goodwill of $30.5 million was recorded in the acquisition. Acquisition-related expenses recognized during the year ended December 31, 2023 totaled $13.7 million, including the recognition of an allowance for credit losses on non-purchased credit deteriorated loans and an allowance for credit losses on unfunded commitments. There were no Town and Country acquisition-related expenses recognized subsequent to the second quarter of 2023.
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Table of Contents
RESULTS OF OPERATIONS
Overview of Recent Financial Results
Year Ended December 31,
(dollars in thousands, except per share amounts)
2025
2024
2023
Total interest and dividend income
$
255,784
$
251,700
$
228,999
Total interest expense
56,889
62,850
37,927
Net interest income
198,895
188,850
191,072
Provision for credit losses
3,161
3,031
7,573
Net interest income after provision for credit losses
195,734
185,819
183,499
Total noninterest income
38,190
35,571
36,046
Total noninterest expense
129,418
124,007
130,964
Income before income tax expense
104,506
97,383
88,581
Income tax expense
27,498
25,603
22,739
Net income
$
77,008
$
71,780
$
65,842
Adjusted net income (1)
$
79,647
$
75,002
$
78,182
Pre-provision net revenue (1)
$
107,667
$
100,414
$
96,154
Pre-provision net revenue less net charge-offs (1)
105,209
98,656
95,974
Adjusted pre-provision net revenue (1)
111,138
104,920
107,281
Adjusted pre-provision net revenue less net charge-offs (1)
108,680
103,162
107,101
Share and Per Share Information
Earnings per share - diluted
$
2.44
$
2.26
$
2.07
Adjusted earnings per share - diluted (1)
2.52
2.37
2.46
Weighted average shares of common stock outstanding
31,502,351
31,590,117
31,626,308
Summary Ratios
Net interest margin
4.13
%
3.96
%
4.09
%
Net interest margin (tax-equivalent basis) (1) (2)
4.17
4.01
4.15
Yield on loans
6.34
6.36
6.04
Yield on interest-earning assets
5.31
5.28
4.90
Cost of total deposits
1.19
1.30
0.60
Cost of funds
1.28
1.41
0.86
Efficiency ratio
53.44
%
53.99
%
56.49
%
Efficiency ratio (tax-equivalent basis) (1) (2)
52.95
53.46
55.81
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)
51.91
52.42
51.68
Return on average assets
1.53
%
1.43
%
1.34
%
Return on average stockholders' equity
13.24
13.93
14.60
Return on average tangible common equity (1)
15.24
16.45
17.63
Adjusted return on average assets (1)
1.58
%
1.50
%
1.59
%
Adjusted return on average stockholders' equity (1)
13.70
14.55
17.34
Adjusted return on average tangible common equity (1)
15.77
17.19
20.94
_________________________________________________
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
45
Table of Contents
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024
For the year ended December 31, 2025, net income was $77.0 million, increasing by $5.2 million, or 7.3%, when compared to net income for the year ended December 31, 2024. Notable changes include the following:
•A $10.0 million increase in net interest income, primarily attributable to lower funding costs, higher yields on debt securities, and higher average loan balances;
•A $0.2 million loss on sales of securities included in the 2025 results, compared to a $3.7 million of loss on sales of securities included in the 2024 results;
•A $3.4 million increase in salaries and benefits expense, primarily driven by higher medical benefits expenses and annual merit increases;
•A $1.9 million negative mortgage servicing rights ("MSR") fair value adjustment included in the 2025 results, compared to a $0.2 million negative MSR fair value adjustment included in the 2024 results;
•A $1.2 million increase in wealth management fees, primarily driven by higher values of assets under management and an increase in farm management fees;
•CNB acquisition-related expenses of $1.0 million, primarily related to professional fees and data processing expense; and
•A $1.9 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Net Interest Income
Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Net interest margin, which is expressed as the percentage of net interest income to average interest-earning assets, is utilized to measure and explain changes in net interest income.
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.
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Table of Contents
Year Ended
December 31, 2025
December 31, 2024
December 31, 2023
(dollars in thousands)
Average Balance
Interest
Yield/Cost
Average Balance
Interest
Yield/Cost
Average Balance
Interest
Yield/Cost
ASSETS
Loans
$
3,422,412
$
216,821
6.34
%
$
3,378,059
$
214,863
6.36
%
$
3,231,736
$
195,197
6.04
%
Debt securities
1,234,378
32,914
2.67
1,200,444
27,903
2.32
1,343,419
29,971
2.23
Deposits with banks
150,323
5,502
3.66
178,436
8,272
4.64
84,544
3,020
3.57
Other
12,554
547
4.36
12,732
662
5.20
15,326
811
5.29
Total interest-earning assets
4,819,667
$
255,784
5.31
%
4,769,671
$
251,700
5.28
%
4,675,025
$
228,999
4.90
%
Allowance for credit losses
(41,970)
(40,694)
(37,504)
Noninterest-earning assets
270,852
279,106
290,383
Total assets
$
5,048,549
$
5,008,083
$
4,927,904
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand
$
1,122,357
$
6,498
0.58
%
$
1,106,136
$
5,499
0.50
%
$
1,188,680
$
3,130
0.26
%
Money market
830,630
18,112
2.18
797,444
18,637
2.34
669,118
7,352
1.10
Savings
567,092
1,540
0.27
584,769
1,621
0.28
661,424
1,033
0.16
Time
775,385
25,539
3.29
757,456
28,183
3.72
481,466
10,784
2.24
Brokered
—
—
—
38,286
2,107
5.50
52,724
2,836
5.38
Total interest-bearing deposits
3,295,464
51,689
1.57
3,284,091
56,047
1.71
3,053,412
25,135
0.82
Securities sold under agreements to repurchase
2,514
22
0.89
30,984
594
1.92
35,450
255
0.72
Borrowings
8,780
203
2.31
13,383
480
3.59
139,817
7,128
5.10
Subordinated notes
27,869
1,326
4.76
39,514
1,879
4.75
39,434
1,879
4.76
Junior subordinated debentures issued to capital trusts
52,879
3,649
6.90
52,819
3,850
7.29
51,489
3,530
6.86
Total interest-bearing liabilities
3,387,506
$
56,889
1.68
%
3,420,791
$
62,850
1.84
%
3,319,602
$
37,927
1.14
%
Noninterest-bearing deposits
1,048,975
1,033,811
1,113,300
Noninterest-bearing liabilities
30,619
38,113
44,074
Total liabilities
4,467,100
4,492,715
4,476,976
Stockholders' Equity
581,449
515,368
450,928
Total liabilities and stockholders’ equity
$
5,048,549
$
5,008,083
$
4,927,904
Net interest income/Net interest margin (1)
$
198,895
4.13
%
$
188,850
3.96
%
$
191,072
4.09
%
Tax-equivalent adjustment (2)
2,203
0.04
2,242
0.05
2,758
0.06
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$
201,098
4.17
%
$
191,092
4.01
%
$
193,830
4.15
%
Net interest rate spread (4)
3.63
%
3.44
%
3.76
%
Net interest-earning assets (5)
$
1,432,161
$
1,348,880
$
1,355,423
Ratio of interest-earning assets to interest-bearing liabilities
1.42
1.39
1.41
Cost of total deposits
1.19
%
1.30
%
0.60
%
Cost of funds
1.28
1.41
0.86
_________________________________________________
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
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Table of Contents
The following table sets forth the components of loan interest income and their contributions to the total loan yield.
Year Ended December 31,
2025
2024
2023
(dollars in thousands)
Interest
Yield Contribution
Interest
Yield Contribution
Interest
Yield
Contribution
Contractual interest
$
206,163
6.03
%
$
205,031
6.07
%
$
185,772
5.75
%
Loan fees
5,600
0.16
4,265
0.13
4,586
0.14
Accretion of acquired loan discounts
3,868
0.11
4,450
0.13
4,136
0.13
Nonaccrual interest recoveries
1,190
0.04
1,117
0.03
703
0.02
Total loan interest income
$
216,821
6.34
%
$
214,863
6.36
%
$
195,197
6.04
%
The following table sets forth the components of net interest income and their contributions to the net interest margin.
Year Ended December 31,
2025
2024
2023
(dollars in thousands)
Interest
Net Interest Margin Contribution
Interest
Net Interest Margin Contribution
Interest
Net Interest Margin Contribution
Interest income:
Contractual interest on loans
$
206,163
4.28
%
$
205,031
4.30
%
$
185,772
3.97
%
Loan fees
5,600
0.12
4,265
0.09
4,586
0.10
Accretion of acquired loan discounts
3,868
0.08
4,450
0.09
4,136
0.09
Nonaccrual interest recoveries
1,190
0.03
1,117
0.02
703
0.02
Debt securities
32,914
0.68
27,903
0.59
29,971
0.64
Interest-bearing deposits in bank
5,502
0.11
8,272
0.18
3,020
0.06
Other
547
0.01
662
0.01
811
0.02
Total interest income
255,784
5.31
251,700
5.28
228,999
4.90
Interest expense:
Deposits
51,689
1.07
56,047
1.18
25,135
0.54
Other interest-bearing liabilities
5,200
0.11
6,803
0.14
12,792
0.27
Total interest expense
56,889
1.18
62,850
1.32
37,927
0.81
Net interest income
198,895
4.13
188,850
3.96
191,072
4.09
Tax-equivalent adjustment (1)
2,203
0.04
2,242
0.05
2,758
0.06
Net interest income (tax-equivalent) (1) (2)
$
201,098
4.17
%
$
191,092
4.01
%
$
193,830
4.15
%
_________________________________________________
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
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Table of Contents
Rate/Volume Analysis
The following table sets forth the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate), and changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both volume and rate that cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.
Year Ended December 31, 2025
vs.
Year Ended December 31, 2024
Year Ended December 31, 2024
vs.
Year Ended December 31, 2023
Increase (Decrease) Due to
Total
Increase (Decrease) Due to
Total
(dollars in thousands)
Volume
Rate
Volume
Rate
Interest-earning assets:
Loans
$
2,813
$
(855)
$
1,958
$
9,054
$
10,612
$
19,666
Debt securities
807
4,204
5,011
(3,286)
1,218
(2,068)
Deposits with banks
(1,186)
(1,584)
(2,770)
4,141
1,111
5,252
Other
(9)
(106)
(115)
(136)
(13)
(149)
Total interest-earning assets
2,425
1,659
4,084
9,773
12,928
22,701
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
82
917
999
(231)
2,600
2,369
Money market
756
(1,281)
(525)
1,641
9,644
11,285
Savings
(49)
(32)
(81)
(132)
720
588
Time
654
(3,298)
(2,644)
8,080
9,319
17,399
Brokered
(2,107)
—
(2,107)
(794)
65
(729)
Total interest-bearing deposits
(664)
(3,694)
(4,358)
8,564
22,348
30,912
Securities sold under agreements to repurchase
(361)
(211)
(572)
(36)
375
339
Borrowings
(136)
(141)
(277)
(5,008)
(1,640)
(6,648)
Subordinated notes
(554)
1
(553)
4
(4)
—
Junior subordinated debentures issued to capital trusts
4
(205)
(201)
93
227
320
Total interest-bearing liabilities
(1,711)
(4,250)
(5,961)
3,617
21,306
24,923
Change in net interest income
$
4,136
$
5,909
$
10,045
$
6,156
$
(8,378)
$
(2,222)
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024
Net interest income for the year ended December 31, 2025 was $198.9 million, increasing $10.0 million, or 5.3%, when compared to the year ended December 31, 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 $0.6 million decrease in acquired loan discount accretion.
Net interest margin increased to 4.13% for the year ended December 31, 2025, compared to 3.96% for the year ended December 31, 2024. The increase was primarily attributable to a decrease in funding costs and higher yields on debt securities. Additionally, the increase in the contribution of loan fees and nonaccrual interest recoveries accounted for 4 basis points of the increase in net interest margin and were partially offset by a 1 basis point decrease in the contribution from acquired loan discount accretion.
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Table of Contents
The quarterly net interest margins were as follows:
2025
2024
2023
Three months ended:
March 31
4.12
%
3.94
%
4.20
%
June 30
4.14
3.95
4.16
September 30
4.13
3.98
4.07
December 31
4.12
3.96
3.93
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. The FOMC paused further interest rate cuts until September 2025, and then resumed with three 25 basis point reductions during the remainder of 2025 with the target range for the federal funds rate set to a range of 3.50% to 3.75% as of December 31, 2025. 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 2025, relative to 2024.
Decreases in market interest rates, and potential future decreases, may put downward pressure on our net interest margin, as the negative impact on floating rate loans may not be fully offset by the positive impacts of maturing fixed rate loans and securities repricing at higher rates or potential decreases in deposit costs. Generally, we expect increases in market interest rates will increase our net interest income and net interest margin in future periods, while decreases in market interest rates may decrease our net interest income and net interest margin in future periods; however, this depends upon the timing and extent of both short-term and long-term interest rate fluctuations and may not always be the case.
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Table of Contents
Provision for Credit Losses
The following table sets forth the components of provision for credit losses for the years indicated:
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
PROVISION FOR CREDIT LOSSES
Loans
$
2,104
$
3,754
$
6,665
Unfunded lending-related commitments
1,057
(723)
908
Total provision for credit losses
$
3,161
$
3,031
$
7,573
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024
The Company recorded a provision for credit losses of $3.2 million for the year ended December 31, 2025, compared to a $3.0 million provision during the year ended December 31, 2024. The 2025 provision for credit losses primarily reflects a $2.2 million increase in required reserves driven by changes within the portfolio; a $1.1 million increase in required reserves resulting from changes in qualitative factors; an $0.8 million increase in required reserves resulting from changes in economic forecasts; and a $0.9 million decrease in specific reserves.
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.
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Table of Contents
Noninterest Income
The following table sets forth the major categories of noninterest income for the years indicated:
Year Ended December 31,
Year Ended December 31,
(dollars in thousands)
2025
2024
$ Change
% Change
2024
2023
$ Change
% Change
Card income
$
10,785
$
11,051
$
(266)
(2.4)
%
$
11,051
$
11,043
$
8
0.1
%
Wealth management fees
12,147
10,978
1,169
10.6
10,978
9,883
1,095
11.1
Service charges on deposit accounts
8,040
7,932
108
1.4
7,932
7,846
86
1.1
Mortgage servicing
4,113
4,437
(324)
(7.3)
4,437
4,678
(241)
(5.2)
Mortgage servicing rights fair value adjustment
(1,883)
(174)
(1,709)
NM
(174)
(1,615)
1,441
NM
Gains on sale of mortgage loans
1,477
1,611
(134)
(8.3)
1,611
1,526
85
5.6
Realized gains (losses) on sales of securities
(200)
(3,697)
3,497
NM
(3,697)
(1,820)
(1,877)
NM
Unrealized gains (losses) on equity securities
7
(59)
66
NM
(59)
160
(219)
NM
Gains (losses) on foreclosed assets
4
22
(18)
(81.8)
22
501
(479)
(95.6)
Gains (losses) on other assets
(85)
(635)
550
NM
(635)
166
(801)
NM
Income on bank owned life insurance
671
915
(244)
(26.7)
915
573
342
59.7
Other noninterest income
3,114
3,190
(76)
(2.4)
3,190
3,105
85
2.7
Total
$
38,190
$
35,571
$
2,619
7.4
%
$
35,571
$
36,046
$
(475)
(1.3)
%
_________________________________________________
NM Not meaningful.
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024
Total noninterest income for the year ended December 31, 2025, was $38.2 million, an increase of $2.6 million, or 7.4%, from the year ended December 31, 2024. Notable changes in noninterest income include the following:
•A $0.2 million loss on sales of securities included in the 2025 results, compared to a $3.7 million of loss on sales of securities included in the 2024 results;
•A $1.9 million negative MSR fair value adjustment included in the 2025 results, compared to a $0.2 million negative MSR fair value adjustment included in the 2024 results;
•A $1.2 million increase in wealth management fees, primarily driven by higher values of assets under management and an increase in farm management fees;
•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; and
•A $0.2 million decrease in income on bank owned life insurance, primarily attributable to the absence of a $0.2 million gain on life insurance proceeds recognized in the 2024 results.
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Table of Contents
Noninterest Expense
The following table sets forth the major categories of noninterest expense for the years indicated:
Year Ended December 31,
Year Ended December 31,
(dollars in thousands)
2025
2024
$ Change
% Change
2024
2023
$ Change
% Change
Salaries
$
66,342
$
65,130
$
1,212
1.9
%
$
65,130
$
67,453
$
(2,323)
(3.4)
%
Employee benefits
13,538
11,311
2,227
19.7
11,311
10,037
1,274
12.7
Occupancy of bank premises
10,713
10,293
420
4.1
10,293
9,918
375
3.8
Furniture and equipment
2,280
2,004
276
13.8
2,004
2,790
(786)
(28.2)
Data processing
11,766
11,169
597
5.3
11,169
12,352
(1,183)
(9.6)
Marketing and customer relations
4,183
4,320
(137)
(3.2)
4,320
5,043
(723)
(14.3)
Amortization of intangible assets
2,726
2,839
(113)
(4.0)
2,839
2,670
169
6.3
Loss on extinguishment of debt
391
—
391
NM
—
—
—
NM
FDIC insurance
2,234
2,254
(20)
(0.9)
2,254
2,280
(26)
(1.1)
Loan collection and servicing
1,346
2,056
(710)
(34.5)
2,056
1,402
654
46.6
Foreclosed assets
169
109
60
55.0
109
251
(142)
(56.6)
Other noninterest expense
13,730
12,522
1,208
9.6
12,522
16,768
(4,246)
(25.3)
Total
$
129,418
$
124,007
$
5,411
4.4
%
$
124,007
$
130,964
$
(6,957)
(5.3)
%
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024
Total noninterest expense for the year ended December 31, 2025, was $129.4 million, an increase of $5.4 million, or 4.4%, from the year ended December 31, 2024. Notable changes in noninterest expense include the following:
•A $2.2 million increase in employee benefits expense, primarily driven by higher medical benefits cost;
•A $1.2 million increase in salaries expense, primarily driven by annual merit increases;
•A $1.2 million increase in other noninterest expense, primarily related to higher legal and professional fees driven primarily by $0.6 million of CNB acquisition-related expenses;
•A $0.6 million increase in data processing expense, primarily related to $0.4 million of CNB acquisition-related expenses as well as a planned call center software upgrade;
•A $0.4 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades; and
•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.
Income Taxes
During the years ended December 31, 2025 and 2024, we recorded income tax expense of $27.5 million, or an effective tax rate of 26.3%, and $25.6 million, or an effective tax rate of 26.3%, respectively. During 2025, we recognized $0.3 million of additional tax expense 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. During 2024, we recognized an additional $0.5 million of tax expense for a deferred tax asset write-down, as a result of an Illinois tax law change.
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FINANCIAL CONDITION
(dollars in thousands, except per share data)
December 31,
2025
December 31,
2024
$ Change
% Change
Cash and cash equivalents
$
122,269
$
137,692
$
(15,423)
(11.2)
%
Debt securities available-for-sale, at fair value
813,101
698,049
115,052
16.5
Debt securities held-to-maturity
458,746
499,858
(41,112)
(8.2)
Loans held for sale
1,263
1,586
(323)
(20.4)
Loans, before allowance for credit losses
3,456,209
3,466,146
(9,937)
(0.3)
Less: allowance for credit losses
41,690
42,044
(354)
(0.8)
Loans, net of allowance for credit losses
3,414,519
3,424,102
(9,583)
(0.3)
Goodwill
59,820
59,820
—
—
Intangible assets, net
15,117
17,843
(2,726)
(15.3)
Other assets
186,555
193,952
(7,397)
(3.8)
Total assets
$
5,071,390
$
5,032,902
$
38,488
0.8
%
Total deposits
$
4,359,263
$
4,318,254
$
41,009
0.9
%
Securities sold under agreements to repurchase
—
28,969
(28,969)
(100.0)
Borrowings
12,301
13,231
(930)
(7.0)
Subordinated notes
—
39,553
(39,553)
(100.0)
Junior subordinated debentures
52,909
52,849
60
0.1
Other liabilities
31,419
35,441
(4,022)
(11.3)
Total liabilities
4,455,892
4,488,297
(32,405)
(0.7)
Total stockholders' equity
615,498
544,605
70,893
13.0
Total liabilities and stockholders' equity
$
5,071,390
$
5,032,902
$
38,488
0.8
%
Tangible assets (1)
$
4,996,453
$
4,955,239
$
41,214
0.8
%
Tangible common equity (1)
540,561
466,942
73,619
15.8
Core deposits (1)
$
4,157,898
$
4,116,058
$
41,840
1.0
%
Share and Per Share Information
Book value per share
$
19.58
$
17.26
$
2.32
13.4
%
Tangible book value per share (1)
17.20
14.80
2.40
16.2
Shares of common stock outstanding
31,431,924
31,559,366
Balance Sheet Ratios
Loan to deposit ratio
79.28
%
80.27
%
Core deposits to total deposits (1)
95.38
95.32
Stockholders' equity to total assets
12.14
10.82
Tangible common equity to tangible assets (1)
10.82
9.42
_________________________________________________
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
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Table of Contents
Notable changes in our consolidated balance sheet include the following:
•A $73.9 million increase in debt securities, primarily attributable to a reinvestment of cash flows from loans into debt securities and a $30.5 million increase in the fair value of debt securities available-for-sale;
•A $41.0 million increase in deposits was primarily attributable to a vast majority of repurchase agreement account balances being transitioned to reciprocal interest-bearing demand deposit accounts during 2025;
•The $39.6 million of subordinated notes outstanding at December 31, 2024 were paid off in September 2025; and
•A $9.9 million decrease in loans with increases in the multi-family and commercial real estate - non-owner occupied segments being offset by decreases in the construction and land development and commercial and industrial segments.
Loan Portfolio
The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.
December 31, 2025
December 31, 2024
(dollars in thousands)
Balance
Percent
Balance
Percent
Commercial and industrial
$
399,760
11.6
%
$
428,389
12.4
%
Commercial real estate - owner occupied
320,434
9.3
322,316
9.3
Commercial real estate - non-owner occupied
937,094
27.0
899,565
25.9
Construction and land development
280,254
8.1
374,657
10.8
Multi-family
544,941
15.8
431,524
12.4
One-to-four family residential
445,463
12.9
463,968
13.4
Agricultural and farmland
275,251
8.0
293,375
8.5
Municipal, consumer, and other
253,012
7.3
252,352
7.3
Loans, before allowance for credit losses
3,456,209
100.0
%
3,466,146
100.0
%
Allowance for credit losses
(41,690)
(42,044)
Loans, net of allowance for credit losses
$
3,414,519
$
3,424,102
Loans, before allowance for credit losses were $3.46 billion at December 31, 2025, a decrease of $9.9 million, or 0.3%, from December 31, 2024. Notable changes include the following:
•A $113.4 million increase in multi-family loans and a $37.5 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;
•A $94.4 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;
•A $28.6 million decrease in commercial and industrial loans, primarily attributable to reduced line of credit usage and payoffs from refinancings.
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Table of Contents
Commercial Real Estate Portfolios
Commercial real estate – owner occupied loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The commercial real estate – owner occupied portfolio composition, segmented by the owner’s business classification, as of December 31, 2025 was as follows:
December 31, 2025
(dollars in thousands)
Balance
Substandard
Risk Rating
Manufacturing
$
49,620
$
326
Auto repair and dealers
33,637
228
Health care and social assistance
33,079
1,368
Real estate, rental, and leasing
33,027
387
Retail trade
29,531
—
Grain elevators
25,284
457
Accommodation and food services
21,806
327
Construction
16,064
974
Wholesale trade
13,853
—
Other services (except public administration)
13,014
248
Administrative and support services
10,501
—
Arts, entertainment, and recreation
9,341
1,636
Education services
6,162
1,146
Agriculture, forestry, fishing, and hunting
6,115
—
Professional, scientific, and technical services
5,512
51
Finance and insurance
2,966
—
Other
10,922
—
Total
$
320,434
$
7,148
Commercial real estate – non-owner occupied loans are primarily made based on projected cash flows from the rental or sale of the underlying collateral. The commercial real estate – non-owner occupied portfolio composition, segmented by the property type, as of December 31, 2025 was as follows:
December 31, 2025
(dollars in thousands)
Balance
Substandard
Risk Rating
Weighted Average LTV(1)
Retail
$
197,992
$
7,379
54
%
Warehouse and manufacturing
179,971
—
54
Office
168,679
—
57
Senior Living
128,183
4,122
62
Hotel
81,549
2,514
53
Mixed use (commercial and residential)
69,448
—
62
Medical office
31,810
—
57
Gas station
26,684
—
58
Auto repair and dealers
21,390
—
54
Restaurant and bar
11,711
—
58
Other
19,677
—
57
Total
$
937,094
$
14,015
56
%
_________________________________________________
(1) Weighted average LTV is based on the most recent appraisals available, which are generally obtained at the time of origination.
Multi-family loans totaled $544.9 million as of December 31, 2025, and are primarily made based on projected cash flows from the rental of the underlying collateral. As of December 31, 2025, 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.
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Table of Contents
Construction and land development loans totaled $280.3 million as of December 31, 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.
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.
For commercial real estate – non-owner occupied and multi-family loans over $1 million, we evaluate, on a quarterly basis, the impact of current interest rates on the underlying cash flows of the properties securing these loans, based on the most recent cash flow data available. Individual credits with a maturity scheduled within the next five quarters that are presenting stress under current renewal terms are identified, so that ample time is available to develop solutions to manage credit risk. This testing is completed in addition to the various sensitivity testing completed at the initial extension of credit.
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Table of Contents
Loan Portfolio Maturities
The following table summarizes the scheduled maturities of the loan portfolio as of December 31, 2025. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in one year or less.
(dollars in thousands)
1 Year
or Less
After 1 Year
Through
5 Years
After 5 Years
Through
15 Years
After
15 Years
Total
Commercial and industrial
$
204,365
$
143,021
$
52,374
$
—
$
399,760
Commercial real estate - owner occupied
39,372
190,533
73,777
16,752
320,434
Commercial real estate - non-owner occupied
230,756
589,614
103,181
13,543
937,094
Construction and land development
148,504
121,560
9,220
970
280,254
Multi-family
107,364
391,532
46,045
—
544,941
One-to-four family residential
85,095
158,743
68,497
133,128
445,463
Agricultural and farmland
114,406
129,917
25,881
5,047
275,251
Municipal, consumer, and other
94,335
51,147
72,212
35,318
253,012
Total
$
1,024,197
$
1,776,067
$
451,187
$
204,758
$
3,456,209
The following table summarizes loans maturing after one year, segregated into variable and fixed interest rates.
Variable Interest Rates
(dollars in thousands)
Repricing
1 Year
or Less
Repricing
After
1 Year
Total
Variable
Interest Rates
Predetermined
(Fixed)
Interest Rates
Total
Commercial and industrial
$
54,376
$
3,544
$
57,920
$
137,475
$
195,395
Commercial real estate - owner occupied
55,794
42,589
98,383
182,679
281,062
Commercial real estate - non-owner occupied
112,532
36,416
148,948
557,390
706,338
Construction and land development
46,258
2,128
48,386
83,364
131,750
Multi-family
36,084
40,722
76,806
360,771
437,577
One-to-four family residential
71,947
64,604
136,551
223,817
360,368
Agricultural and farmland
6,354
10,189
16,543
144,302
160,845
Municipal, consumer, and other
13,744
28,671
42,415
116,262
158,677
Total
$
397,089
$
228,863
$
625,952
$
1,806,060
$
2,432,012
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Table of Contents
Nonperforming Assets
Our nonperforming loans and nonperforming assets were as follows:
(dollars in thousands)
December 31, 2025
December 31, 2024
NONPERFORMING ASSETS
Nonaccrual
$
7,556
$
7,652
Past due 90 days or more, still accruing
—
4
Total nonperforming loans
7,556
7,656
Foreclosed assets
1,126
367
Total nonperforming assets
$
8,682
$
8,023
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government
$
2,170
$
1,573
Allowance for credit losses
$
41,690
$
42,044
Loans, before allowance for credit losses
3,456,209
3,466,146
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses
1.21
%
1.21
%
Allowance for credit losses to nonaccrual loans
551.75
549.45
Allowance for credit losses to nonperforming loans
551.75
549.16
Nonaccrual loans to loans, before allowance for credit losses
0.22
0.22
Nonperforming loans to loans, before allowance for credit losses
0.22
0.22
Nonperforming assets to total assets
0.17
0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets
0.25
0.23
Total nonperforming assets were $8.7 million at December 31, 2025, an increase of 8.2%, when compared to $8.0 million at December 31, 2024. The $0.7 million increase in nonperforming assets from December 31, 2024 was primarily attributable to an increase in foreclosed assets. Of the $7.6 million of nonperforming loans held as of December 31, 2025, $2.2 million are either wholly or partially guaranteed by the U.S. Government.
Risk Classification of Loans
Our risk classifications of loans were as follows:
(dollars in thousands)
December 31, 2025
December 31, 2024
Pass
$
3,241,912
$
3,264,396
Pass-watch
131,766
83,947
Special mention
11,788
46,590
Substandard
70,743
71,213
Total
$
3,456,209
$
3,466,146
Loans rated pass-watch or worse increased $12.5 million, or 6.2%, from December 31, 2024 to December 31, 2025, primarily attributable to downgrades within the multifamily and commercial real estate - non-owner occupied segments which were partially offset by pay-offs in the construction and land development segment.
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Table of Contents
Net Charge-offs (Recoveries)
The following table summarizes net charge-offs (recoveries) to average loans by loan category.
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Net charge-offs (recoveries)
Commercial and industrial
$
1,850
$
1,300
$
369
Commercial real estate - owner occupied
88
(10)
(13)
Commercial real estate - non-owner occupied
—
(586)
(66)
Construction and land development
(69)
(3)
(53)
Multi-family
80
188
(281)
One-to-four family residential
209
(142)
(152)
Agricultural and farmland
(49)
51
(6)
Municipal, consumer, and other
349
960
382
Total
$
2,458
$
1,758
$
180
Average loans
Commercial and industrial
$
421,324
$
402,936
$
370,255
Commercial real estate - owner occupied
319,690
294,847
290,489
Commercial real estate - non-owner occupied
909,586
886,903
874,661
Construction and land development
329,211
364,138
368,111
Multi-family
465,200
423,532
372,201
One-to-four family residential
451,933
482,984
476,856
Agricultural and farmland
276,849
285,747
254,106
Municipal, consumer, and other
248,619
236,972
225,057
Total
$
3,422,412
$
3,378,059
$
3,231,736
Charge-offs (recoveries) to average loans
Commercial and industrial
0.44
%
0.32
%
0.10
%
Commercial real estate - owner occupied
0.03
—
—
Commercial real estate - non-owner occupied
—
(0.07)
(0.01)
Construction and land development
(0.02)
—
(0.01)
Multi-family
0.02
0.04
(0.08)
One-to-four family residential
0.05
(0.03)
(0.03)
Agricultural and farmland
(0.02)
0.02
—
Municipal, consumer, and other
0.14
0.41
0.17
Total
0.07
%
0.05
%
0.01
%
_________________________________________________
* Annualized measure.
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.
Additionally, equipment finance loans, which were purchased as part of a pool of loans during 2023, continued to contribute to heightened net charge-offs within the commercial and industrial segment.
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Table of Contents
Securities
The Company’s investment policy emphasizes safety of the principal, liquidity needs, expected returns, cash flow targets, and consistency with our interest rate risk management strategy. The composition and maturities of the debt securities portfolio as of December 31, 2025, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Security yields have not been adjusted to a tax-equivalent basis.
December 31, 2025
Available-for-Sale
Held-to-Maturity
Total
(dollars in thousands)
Amortized
Cost
Weighted
Average
Yield
Amortized
Cost
Weighted
Average
Yield
Amortized
Cost
Weighted
Average
Yield
Due in 1 year or less
U.S. Treasury
$
19,992
1.03
%
$
—
—
%
$
19,992
1.03
%
U.S. government agency
5,007
1.99
5,000
1.10
10,007
1.55
Municipal
7,131
1.76
2,330
2.83
9,461
2.02
Mortgage-backed:
Agency residential
987
2.55
—
—
987
2.55
Agency commercial
915
2.41
4,125
2.37
5,040
2.38
Corporate
1,998
6.00
—
—
1,998
6.00
Total
$
36,030
1.66
%
$
11,455
1.91
%
$
47,485
1.72
%
Due after 1 year through 5 years
U.S. Treasury
$
60,067
1.37
%
$
—
—
%
$
60,067
1.37
%
U.S. government agency
18,765
2.42
37,385
2.44
56,150
2.43
Municipal
76,302
1.67
15,297
3.21
91,599
1.93
Mortgage-backed:
Agency residential
7,017
2.77
10,665
2.09
17,682
2.36
Agency commercial
68,923
1.64
132,208
2.13
201,131
1.96
Corporate
18,232
5.32
—
—
18,232
5.32
Total
$
249,306
1.94
%
$
195,555
2.27
%
$
444,861
2.09
%
Due after 5 years through 10 years
U.S. Treasury
$
9,737
1.66
%
$
—
—
%
$
9,737
1.66
%
U.S. government agency
18,627
3.62
46,111
2.66
64,738
2.93
Municipal
49,928
1.87
8,653
3.64
58,581
2.13
Mortgage-backed:
Agency residential
55,541
2.41
—
—
55,541
2.41
Agency commercial
5,885
2.28
92,491
1.89
98,376
1.92
Corporate
41,000
6.11
—
—
41,000
6.11
Total
$
180,718
3.18
%
$
147,255
2.23
%
$
327,973
2.76
%
Due after 10 years
Municipal
$
18,783
2.76
%
$
1,934
3.47
%
$
20,717
2.83
%
Mortgage-backed:
Agency residential
301,022
4.53
64,871
3.62
365,893
4.37
Agency commercial
51,281
3.56
37,676
1.97
88,957
2.89
Corporate
4,727
6.10
—
—
4,727
6.10
Total
$
375,813
4.33
%
$
104,481
3.02
%
$
480,294
4.05
%
Total
U.S. Treasury
$
89,796
1.33
%
$
—
—
%
$
89,796
1.33
%
U.S. government agency
42,399
2.89
88,496
2.48
130,895
2.61
Municipal
152,144
1.87
28,214
3.33
180,358
2.10
Mortgage-backed:
Agency residential
364,567
4.17
75,536
3.41
440,103
4.04
Agency commercial
127,004
2.45
266,500
2.03
393,504
2.17
Corporate
65,957
5.89
—
—
65,957
5.89
Total
$
841,867
3.26
%
$
458,746
2.42
%
$
1,300,613
2.97
%
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Table of Contents
SOURCES OF FUNDS
Deposits
Management continues to focus on growing deposits through the Company’s relationship-driven banking philosophy and community-focused marketing programs.
The following table sets forth the distribution of average deposits, by account type:
Year Ended December 31, 2025
Percent
Change in Average Balance
2025 vs. 2024
(dollars in thousands)
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost
Noninterest-bearing
$
1,048,975
24.1
%
—
%
1.5
%
Interest-bearing demand
1,122,357
25.8
0.58
1.5
Money market
830,630
19.1
2.18
4.2
Savings
567,092
13.1
0.27
(3.0)
Time
775,385
17.9
3.29
2.4
Brokered
—
—
—
(100.0)
Total deposits
$
4,344,439
100.0
%
1.19
%
0.6
%
Year Ended December 31, 2024
Percent
Change in Average Balance
2024 vs. 2023
(dollars in thousands)
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost
Noninterest-bearing
$
1,033,811
23.9
%
—
%
(7.1)
%
Interest-bearing demand
1,106,136
25.6
0.50
(6.9)
Money market
797,444
18.6
2.34
19.2
Savings
584,769
13.5
0.28
(11.6)
Time
757,456
17.5
3.72
57.3
Brokered
38,286
0.9
5.50
(27.4)
Total deposits
$
4,317,902
100.0
%
1.30
%
3.6
%
Year Ended December 31, 2023
(dollars in thousands)
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost
Noninterest-bearing
$
1,113,300
26.7
%
—
%
Interest-bearing demand
1,188,680
28.5
0.26
Money market
669,118
16.1
1.10
Savings
661,424
15.9
0.16
Time
481,466
11.5
2.24
Brokered
52,724
1.3
5.38
Total deposits
$
4,166,712
100.0
%
0.60
%
The increase in average deposit balances in 2025 compared to 2024 was primarily attributable to increases in money market accounts and time deposits. While balances continued to shift towards higher cost deposit products, this transition slowed in 2025 relative to 2024. Partially offsetting the increase was a decrease in brokered deposits which were allowed to mature in 2025.
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 of these changes, total deposit costs decreased during 2025 compared to 2024.
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The following table sets forth time deposits by remaining maturity as of December 31, 2025:
(dollars in thousands)
3 Months or
Less
Over 3 through
6 Months
Over 6 through
12 Months
Over
12 Months
Total
Time deposits:
Amounts less than $100,000
$
110,265
$
114,613
$
58,550
$
33,408
$
316,836
Amounts of $100,000 or more but less than $250,000
91,367
91,236
46,499
15,184
244,286
Amounts of $250,000 or more
84,904
86,001
25,069
5,391
201,365
Total time deposits
$
286,536
$
291,850
$
130,118
$
53,983
$
762,487
As of December 31, 2025 and 2024, the Bank’s uninsured deposits were estimated to be $928.7 million and $949.4 million, respectively.
Securities Sold Under Agreements to Repurchase
All securities sold under agreements to repurchase are sweep instruments, maturing daily. The securities underlying the agreements are held under our control in safekeeping at third-party financial institutions, and include debt securities.
The following table sets forth information concerning balances and interest rates on our securities sold under agreements to repurchase.
As of or for the Years Ended December 31,
(dollars in thousands)
2025
2024
2023
Balance at end of year
$
—
$
28,969
$
42,442
Average balance during year
2,514
30,984
35,450
Average interest rate during year
0.89
%
1.92
%
0.72
%
The vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand deposit accounts during the first half of 2025.
Borrowings
Deposits are the Bank's primary source of funds for our lending activities and general business purposes. However, we may also obtain advances from the FHLB, purchase federal funds, and engage in overnight borrowing from the Federal Reserve. We may also use these sources of funds as part of our asset liability management process to control our long-term interest rate risk exposure, even if it may increase our short-term cost of funds. Our level of short-term borrowing can fluctuate on a daily basis depending on funding needs and the source of funds to satisfy the needs.
Our use of FHLB advances and other borrowings was elevated during 2023 to fund increases in loan demand and to offset a decrease in deposits. Our use of FHLB advances and other borrowings returned to nominal levels during 2024 and 2025, with loan demand funded primarily through cash flows from the debt securities portfolio.
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The following table sets forth information concerning balances and interest rates on our borrowings.
As of or for the Years Ended December 31,
(dollars in thousands)
2025
2024
2023
Balance at end of year
FHLB advances
$
12,301
$
13,231
$
12,623
Federal Reserve discount window
—
—
—
Federal funds purchased
—
—
—
Total borrowings
$
12,301
$
13,231
$
12,623
Average balance during year
FHLB advances
$
8,769
$
13,301
$
139,554
Federal Reserve discount window
—
—
3
Federal funds purchased
11
82
260
Total borrowings
$
8,780
$
13,383
$
139,817
Average interest rate during year
FHLB advances
2.31
%
3.57
%
5.10
%
Federal Reserve discount window
—
—
5.25
Federal funds purchased
3.28
5.93
5.56
Total borrowings
2.31
3.59
5.10
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LIQUIDITY
Bank Liquidity
The overall objective of bank liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. The Bank manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.
The Bank continuously monitors its liquidity positions to ensure that assets and liabilities are managed in a manner that will meet all of our short-term and long-term cash requirements. The Bank manages its liquidity position to meet our daily cash flow needs, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives. The Bank also monitors liquidity requirements in light of interest rate trends, changes in the economy, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.
As part of the Bank’s liquidity management strategy, the Bank is also focused on minimizing costs of liquidity and attempts to decrease these costs by promoting noninterest-bearing and low-cost deposits. While the Bank does not control the types of deposit instruments our clients choose, those choices can be influenced with the rates and the deposit specials offered.
Our on-balance sheet sources of liquidity included cash and cash equivalents as well as unpledged securities which may be sold or pledged as collateral to meet liquidity needs. As of December 31, 2025 and 2024, our on-balance sheet sources of liquidity included the following:
(dollars in thousands)
December 31, 2025
December 31, 2024
Cash and cash equivalents
$
122,269
$
137,692
Fair value of unpledged securities
845,524
705,106
Total cash and unpledged securities
$
967,793
$
842,798
Additional sources of liquidity include borrowings from the FHLB, the Federal Reserve discount window, and federal fund lines of credit. Interest is charged on outstanding borrowings at the prevailing market rate. As of December 31, 2025, our current borrowings and additional available borrowing capacity were as follows:
December 31, 2025
(dollars in thousands)
Current Balance
Additional
Available Capacity
FHLB
$
12,301
$
1,058,052
Federal Reserve
—
108,840
Federal funds lines of credit
—
80,000
Total
$
12,301
$
1,246,892
Furthermore, the Bank could utilize brokered deposits as an additional source of liquidity, as needed.
As of December 31, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Bank. As of December 31, 2025, the Bank had no material commitments for capital expenditures.
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Table of Contents
Holding Company Liquidity
HBT Financial, on an unconsolidated basis (the "Holding Company"), is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of December 31, 2025, the Holding Company had cash and cash equivalents of $11.9 million.
The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. Due to state banking laws, the Bank may not declare dividends in any calendar year in an amount that would exceed accumulated retained earnings, after giving effect to any unrecognized losses and bad debts, without the prior approval of the IDFPR. In addition, 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 these limitations will not impact the Holding Company’s ability to meet its ongoing short-term cash obligations. During the years ended December 31, 2025 and 2024, the Bank paid $72.5 million and $34.0 million in dividends to the Holding Company, respectively.
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on the subordinated notes and junior subordinated debentures, and shareholder distributions in the form of dividends and stock repurchases. During the years ended December 31, 2025 and 2024, holding company operating expenses consisted of interest expense of $5.0 million and $5.7 million, respectively, and other operating expenses of $5.4 million and $4.1 million, respectively.
Additionally, the Holding Company paid $26.6 million and $24.2 million of dividends to stockholders during the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Holding Company’s liquidity.
As of December 31, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Holding Company. As of December 31, 2025, the Holding Company had no material commitments for capital expenditures.
CAPITAL RESOURCES
The overall objectives of capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. The Company seeks to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.
Regulatory Capital Requirements
The Company and Bank are each subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank.
In addition to meeting minimum capital requirements, the Company and the Bank must also maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer requirement is 2.5% of risk-weighted assets.
As of December 31, 2025 and 2024, the Company and the Bank met all capital adequacy requirements to which they were subject. As of those dates, the Bank was “well capitalized” under the regulatory prompt corrective action provisions.
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The following table sets forth actual capital ratios of the Company and the Bank as of the dates indicated, as well as the minimum ratios for capital adequacy purposes with the capital conservation buffer, and the minimum ratios to be well capitalized under regulatory prompt corrective action provisions.
December 31,
2025
December 31,
2024
For Capital
Adequacy Purposes
With Capital
Conservation Buffer (1)
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions (2)
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)
16.82
%
16.51
%
10.50
%
N/A
Tier 1 Capital (to Risk Weighted Assets)
15.72
14.50
8.50
N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)
14.42
13.21
7.00
N/A
Tier 1 Capital (to Average Assets)
12.26
11.51
4.00
N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)
16.52
%
16.11
%
10.50
%
10.00
%
Tier 1 Capital (to Risk Weighted Assets)
15.42
15.10
8.50
8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)
15.42
15.10
7.00
6.50
Tier 1 Capital (to Average Assets)
12.02
11.98
4.00
5.00
_________________________________________________
(1)The Tier 1 capital to average assets ratio (known as the “leverage ratio”) is not impacted by the capital conservation buffer.
(2)The prompt corrective action provisions are not applicable to bank holding companies.
N/A Not applicable.
As of December 31, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Company’s capital resources.
Cash Dividends
The Company paid quarterly cash dividends of $0.21 per share during 2025, compared to $0.19 per share during 2024. On January 27, 2026, the Company’s Board of Directors increased the quarterly cash dividend by $0.02 per share to $0.23 per share.
Stock Repurchase Program
The Company repurchased 199,507 shares of its common stock at a weighted average price of $22.47 during 2025, compared to 232,803 shares at a weighted average price of $18.89 during 2024. Repurchases were conducted in compliance with Rule 10b-18 and in compliance with Regulation M under the Exchange Act. On December 16, 2025, the Company’s Board of Directors approved a new stock repurchase program which authorizes the Company to repurchase up to $30.0 million of its common stock. The new stock repurchase program took effect on January 1, 2026, the expiration of the prior stock repurchase program, and expires on January 1, 2027.
OFF-BALANCE SHEET ARRANGEMENTS
As a financial services provider, the Bank routinely is a party to various financial instruments with off-balance sheet risks, such as commitments to extend credit, standby letters of credit, unused lines of credit, commitments to sell loans, and interest rate swaps. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process afforded to loans originated by the Bank. For additional information, see “Note 23 – Commitments and Contingencies” to the consolidated financial statements.
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CRITICAL ACCOUNTING ESTIMATES
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:
Allowance for Credit Losses
The allowance for credit losses reflects an estimate of lifetime expected credit losses. Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is established through a provision for credit losses which is charged to expense. Additions to the allowance for credit losses are expected to maintain the adequacy of the total allowance for credit losses. Loan losses are charged off against the allowance for credit losses when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance for credit losses.
Management uses the discounted cash flow method to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. The Company uses regression analysis of historical internal and peer data to determine which macroeconomic variables are most closely correlated with credit losses, such as the unemployment rate and changes in GDP. Management leverages economic projections from a reputable third party to form its economic forecasts with a reversion to historical averages for periods beyond a reasonable and supportable forecast period.
Nonaccrual loans and loans which do not share risk characteristics with other loans in the pool are individually evaluated to determine expected credit losses.
The allowance for credit losses on unfunded commitments is estimated in the same manner as the associated loans, adjusted for anticipated funding rate.
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NON-GAAP FINANCIAL INFORMATION
This Annual Report on Form 10-K contains certain financial information determined by methods other than those in accordance with GAAP. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures below.
Non-GAAP Financial Measure
Definition
How the Measure Provides Useful Information to Investors
Adjusted Net Income
•Net income, with the following adjustments:
-excludes acquisition expenses, including the day 2 provision for credit losses on non-PCD loans and unfunded commitments,
-excludes branch closure expenses,
-losses on extinguishment of debt,
-excludes gains (losses) on closed branch premises,
-excludes realized gains (losses) on sales of securities,
-excludes mortgage servicing rights fair value adjustment, and
-the income tax effect of these pre-tax adjustments.
•Enhances comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects.
•We also sometimes refer to ratios that include Adjusted Net Income, such as:
-Adjusted Return on Average Assets, which is Adjusted Net Income divided by average assets.
-Adjusted Return on Average Equity, which is Adjusted Net Income divided by average equity.
-Adjusted Earnings Per Share – Basic, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding.
-Adjusted Earnings Per Share – Diluted, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding, including all dilutive potential shares.
•Adjusted Return on Average Assets is a performance measure utilized in determining executive compensation.
Pre-Provision Net Revenue
•Net interest income, plus noninterest income, less noninterest expense.
•Provides investors with information regarding profitability excluding provision for credit losses and income tax expense, which may fluctuate from period to period.
•We also sometimes refer to measures that include Pre-Provision Net Revenue, such as:
-Adjusted Pre-Provision Net Revenue which reflects the adjustments considered in Adjusted Net Income, as necessary.
-Pre-Provision Net Revenue Less Charge-offs (Recoveries).
-Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Pre-Provision Net Revenue Less Net Charge-Offs (Recoveries) is a performance measure utilized in determining executive compensation.
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Table of Contents
Non-GAAP Financial Measure
Definition
How the Measure Provides Useful Information to Investors
Net Interest Income (Tax-Equivalent Basis)
•Net interest income adjusted for the tax-favored status of tax-exempt loans and securities. (1)
•We believe the tax-equivalent basis is the preferred industry measurement of net interest income.
•Enhances comparability of net interest income arising from taxable and tax-exempt sources.
•We also sometimes refer to Net Interest Margin (Tax-Equivalent Basis), which is Net Interest Income (Tax-Equivalent Basis) divided by average interest-earning assets.
Efficiency Ratio (Tax-Equivalent Basis)
•Noninterest expense less amortization of intangible assets divided by the sum of net interest income (tax-equivalent basis) and noninterest income. (1)
•Provides a measure of productivity in the banking industry.
•Calculated to measure the cost of generating one dollar of revenue. That is, the ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.
•We also sometimes refer to Adjusted Efficiency Ratio (Tax-Equivalent Basis) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Efficiency Ratio (Tax-Equivalent Basis) is a performance measure utilized in determining executive compensation.
Ratio of Tangible Common Equity to Tangible Assets
•Tangible Common Equity is total stockholders’ equity less goodwill and other intangible assets.
•Tangible Assets is total assets less goodwill and other intangible assets.
•Generally used by investors, our management, and banking regulators to evaluate capital adequacy.
•Facilitates comparison of our earnings with the earnings of other banking organization with varying amounts of goodwill or intangible assets.
•We also sometimes refer to ratios that include Tangible Common Equity, such as:
-Tangible Book Value Per Share, which is Tangible Common Equity divided by shares of common stock outstanding.
-Return on Average Tangible Common Equity, which is net income divided by average Tangible Common Equity.
-Adjusted Return on Average Tangible Common Equity, which is Adjusted Net Income divided by average Tangible Common Equity.
Core Deposits
•Total deposits, excluding:
-Time deposits of $250,000 or more, and
-Brokered deposits
•Provides investors with information regarding the stability of the Company’s sources of funds.
•We also sometimes refer to the ratio of Core Deposits to total deposits.
_________________________________________________
(1)Tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
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Table of Contents
Reconciliation of Non-GAAP Financial Measure —
Adjusted Net Income and Adjusted Return on Average Assets
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Net income
$
77,008
$
71,780
$
65,842
Less: adjustments
Acquisition expenses
(999)
—
(13,691)
Loss on extinguishment of debt
(391)
—
—
Gains (losses) on closed branch premises
2
(635)
75
Realized gains (losses) on sales of securities
(200)
(3,697)
(1,820)
Mortgage servicing rights fair value adjustment
(1,883)
(174)
(1,615)
Total adjustments
(3,471)
(4,506)
(17,051)
Tax effect of adjustments (1)
832
1,284
4,711
Total adjustments after tax effect
(2,639)
(3,222)
(12,340)
Adjusted net income
$
79,647
$
75,002
$
78,182
Average assets
$
5,048,549
$
5,008,083
$
4,927,904
Return on average assets
1.53
%
1.43
%
1.34
%
Adjusted return on average assets
1.58
1.50
1.59
_________________________________________________
(1)Assumes a federal income tax rate of 21% and a state tax rate of 9.5%, and excludes non-deductible acquisition expenses.
Reconciliation of Non-GAAP Financial Measure —
Adjusted Earnings Per Share
Year Ended December 31,
(dollars in thousands, except per share amounts)
2025
2024
2023
Numerator:
Net income
$
77,008
$
71,780
$
65,842
Earnings allocated to participating securities (1)
—
—
(36)
Numerator for earnings per share - basic and diluted
$
77,008
$
71,780
$
65,806
Adjusted net income
$
79,647
$
75,002
$
78,182
Earnings allocated to participating securities (1)
—
—
(42)
Numerator for adjusted earnings per share - basic and diluted
$
79,647
$
75,002
$
78,140
Denominator:
Weighted average common shares outstanding
31,502,351
31,590,117
31,626,308
Dilutive effect of outstanding restricted stock units
108,953
122,363
111,839
Weighted average common shares outstanding, including all dilutive potential shares
31,611,304
31,712,480
31,738,147
Earnings per share - basic
$
2.44
$
2.27
$
2.08
Earnings per share - diluted
$
2.44
$
2.26
$
2.07
Adjusted earnings per share - basic
$
2.53
$
2.37
$
2.47
Adjusted earnings per share - diluted
$
2.52
$
2.37
$
2.46
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Reconciliation of Non-GAAP Financial Measure —
Pre-Provision Net Revenue, Pre-Provision Net Revenue Less Charge-offs (Recoveries),
Adjusted Pre-Provision Net Revenue, and
Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries)
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Net interest income
$
198,895
$
188,850
$
191,072
Noninterest income
38,190
35,571
36,046
Noninterest expense
(129,418)
(124,007)
(130,964)
Pre-provision net revenue
107,667
100,414
96,154
Less: adjustments
Acquisition expenses
(999)
—
(7,767)
Loss on extinguishment of debt
(391)
—
—
Gains (losses) on closed branch premises
2
(635)
75
Realized gains (losses) on sales of securities
(200)
(3,697)
(1,820)
Mortgage servicing rights fair value adjustment
(1,883)
(174)
(1,615)
Total adjustments
(3,471)
(4,506)
(11,127)
Adjusted pre-provision net revenue
$
111,138
$
104,920
$
107,281
Pre-provision net revenue
$
107,667
$
100,414
$
96,154
Less: net charge-offs
2,458
1,758
180
Pre-provision net revenue less net charge-offs
$
105,209
$
98,656
$
95,974
Adjusted pre-provision net revenue
$
111,138
$
104,920
$
107,281
Less: net charge-offs
2,458
1,758
180
Adjusted pre-provision net revenue less net charge-offs
$
108,680
$
103,162
$
107,101
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Reconciliation of Non-GAAP Financial Measure —
Net Interest Income and Net Interest Margin (Tax-Equivalent Basis)
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Net interest income (tax-equivalent basis)
Net interest income
$
198,895
$
188,850
$
191,072
Tax-equivalent adjustment (1)
2,203
2,242
2,758
Net interest income (tax-equivalent basis) (1)
$
201,098
$
191,092
$
193,830
Net interest margin (tax-equivalent basis)
Net interest margin
4.13
%
3.96
%
4.09
%
Tax-equivalent adjustment (1)
0.04
0.05
0.06
Net interest margin (tax-equivalent basis) (1)
4.17
%
4.01
%
4.15
%
Average interest-earning assets
$
4,819,667
$
4,769,671
$
4,675,025
_________________________________________________
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure —
Efficiency Ratio (Tax-Equivalent Basis) and Adjusted Efficiency Ratio (Tax-Equivalent Basis)
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Total noninterest expense
$
129,418
$
124,007
$
130,964
Less: amortization of intangible assets
2,726
2,839
2,670
Noninterest expense excluding amortization of intangible assets
$
126,692
$
121,168
$
128,294
Less: adjustments to noninterest expense
Acquisition expenses
999
—
7,767
Loss on extinguishment of debt
391
—
—
Total adjustments to noninterest expense
1,390
—
7,767
Adjusted noninterest expense
$
125,302
$
121,168
$
120,527
Net interest income
$
198,895
$
188,850
$
191,072
Total noninterest income
38,190
35,571
36,046
Operating revenue
237,085
224,421
227,118
Tax-equivalent adjustment (1)
2,203
2,242
2,758
Operating revenue (tax-equivalent basis) (1)
239,288
226,663
229,876
Less: adjustments to noninterest income
Gains (losses) on closed branch premises
2
(635)
75
Realized gains (losses) on sales of securities
(200)
(3,697)
(1,820)
Mortgage servicing rights fair value adjustment
(1,883)
(174)
(1,615)
Total adjustments to noninterest income
(2,081)
(4,506)
(3,360)
Adjusted operating revenue (tax-equivalent basis) (1)
$
241,369
$
231,169
$
233,236
Efficiency ratio
53.44
%
53.99
%
56.49
%
Efficiency ratio (tax-equivalent basis) (1)
52.95
53.46
55.81
Adjusted efficiency ratio (tax-equivalent basis) (1)
51.91
52.42
51.68
_________________________________________________
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
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Reconciliation of Non-GAAP Financial Measure —
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data)
December 31, 2025
December 31, 2024
Tangible Common Equity
Total stockholders' equity
$
615,498
$
544,605
Less: Goodwill
59,820
59,820
Less: Intangible assets, net
15,117
17,843
Tangible common equity
$
540,561
$
466,942
Tangible Assets
Total assets
$
5,071,390
$
5,032,902
Less: Goodwill
59,820
59,820
Less: Intangible assets, net
15,117
17,843
Tangible assets
$
4,996,453
$
4,955,239
Total stockholders' equity to total assets
12.14
%
10.82
%
Tangible common equity to tangible assets
10.82
9.42
Shares of common stock outstanding
31,431,924
31,559,366
Book value per share
$
19.58
$
17.26
Tangible book value per share
17.20
14.80
Reconciliation of Non-GAAP Financial Measure —
Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders’ Equity, and Adjusted Return on Average Tangible Common Equity
Year Ended December 31,
(dollars in thousands)
2025
2024
2023
Average Tangible Common Equity
Total stockholders' equity
$
581,449
$
515,368
$
450,928
Less: Goodwill
59,820
59,820
57,266
Less: Intangible assets, net
16,437
19,247
20,272
Average tangible common equity
$
505,192
$
436,301
$
373,390
Net income
$
77,008
$
71,780
$
65,842
Adjusted net income
79,647
75,002
78,182
Return on average stockholders' equity
13.24
%
13.93
%
14.60
%
Return on average tangible common equity
15.24
16.45
17.63
Adjusted return on average stockholders' equity
13.70
%
14.55
%
17.34
%
Adjusted return on average tangible common equity
15.77
17.19
20.94
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Reconciliation of Non-GAAP Financial Measure —
Core Deposits
(dollars in thousands)
December 31, 2025
December 31, 2024
Core Deposits
Total deposits
$
4,359,263
$
4,318,254
Less: time deposits of $250,000 or more
201,365
202,196
Less: brokered deposits
—
—
Core deposits
$
4,157,898
$
4,116,058
Core deposits to total deposits
95.38
%
95.32
%
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