EX-99.1 2 tmb-20200430xex99d1.htm EX-99.1

EXHIBIT 99.1

HBT FINANCIAL, INC. ANNOUNCES

FIRST QUARTER 2020 FINANCIAL RESULTS

First Quarter Highlights

| · |  | Net income of $6.2 million, or $0.23 per diluted share; return on average assets (ROAA) of 0.78%; return on average stockholders' equity (ROAE) of 7.29%; and return on average tangible common equity (ROATCE)(1) of 7.92%

| · |  | Adjusted net income(1) of $8.4 million; or $0.30 per diluted share, adjusted ROAA(1) of 1.05%; adjusted ROAE(1) of 9.81%; and adjusted ROATCE(1) of 10.67%

| · |  | $141 million in Paycheck Protection Program loans approved and funded subsequent to March 31, 2020 through April 24, 2020

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

Bloomington, IL, April 30, 2020 – HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company and State Bank of Lincoln, today reported net income of $6.2 million, or $0.23 diluted earnings per share, for the first quarter of 2020. This compares to net income of $16.1 million, or $0.61 diluted earnings per share, for the fourth quarter of 2019, and net income of $18.7 million, or $1.04 diluted earnings per share, for the first quarter of 2019.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “The COVID-19 pandemic has presented unprecedented challenges for our team and for our customers. However, for several generations, our banks have been a source of strength for our customers and communities during difficult times. Our top priority is supporting our employees and customers and maintaining the health and safety of all involved. Many of our employees have been able to work remotely and we took the difficult step of closing our lobbies, with visits limited to appointment only. Our team has worked hard to minimize customer impact and continue our commitment to excellent service. Our retail staff continues to assist our clients with essential banking needs, and our lenders are in regular contact with our borrowers, working closely with them for the best solutions under the current circumstances. Through April 24, 2020, we had funded $141 million of PPP (Payroll Protection Program) loans, for 1,129 businesses in our communities. HBT Financial is well positioned, with an attractive deposit base, strong capital levels and a track record of safety and soundness. We are committed to uphold our Midwestern values of hard work, perseverance and doing the right thing as we continue to support our stakeholders in this crisis.”

C Corp Equivalent Net Income

Prior to October 11, 2019, the Company operated as an S Corporation for U.S. federal and state income tax purposes. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect state replacement taxes. To facilitate comparison, the Company reports its C Corp equivalent financial results, which do not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

The Company reported C Corp equivalent net income of $15.1 million, or $0.58 diluted earnings per share, for the fourth quarter of 2019 and C Corp equivalent net income of $14.0 million, or $0.78 diluted earnings per share, for the first quarter of 2019.

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Adjusted Net Income

In addition to reporting C Corp equivalent results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $8.4 million, or $0.30 adjusted diluted earnings per share, for the first quarter of 2020. This compares to adjusted net income of $14.4 million, or $0.55 adjusted diluted earnings per share, for the fourth quarter of 2019, and adjusted net income of $14.4 million, or $0.80 adjusted diluted earnings per share, for the first quarter of 2019 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2020 was $30.7 million, a decrease of 5.0% from $32.3 million for the fourth quarter of 2019. The decrease was primarily attributable to lower yields on loans and securities and a decrease in average interest-earning assets.

Relative to the first quarter of 2019, net interest income decreased $3.8 million, or 11.0%. The decline was primarily attributable to lower yields on average interest-earning assets.

Net interest margin for the first quarter of 2020 was 4.00%, including 5 basis points attributable to acquired loan discount accretion, compared to 4.12%, including 2 basis points attributable to acquired loan discount accretion, for the fourth quarter of 2019. The decrease was primarily attributable to a decline in average loan yields, lower average loan balances, and lower securities yields and balances.

Relative to the first quarter of 2019, net interest margin decreased from 4.44%, including 18 basis points attributable to acquired loan discount accretion, due primarily to lower loan yields and an increase in lower-yielding cash balances, partially offset by lower balances in time deposits and a lower cost of interest-bearing demand deposits.

The Federal Open Market Committee lowered its target federal funds rate 50 basis points on March 3, 2020 and 100 basis points on March 16, 2020. The Company expects the cumulative decrease of 150 basis points in the target federal funds rate in March 2020 to continue placing downward pressure on its net interest margin in 2020.

Noninterest Income

Noninterest income for the first quarter of 2020 was $5.3 million, a decrease of 49.2% from $10.3 million for the fourth quarter of 2019. First quarter 2020 results included a negative $2.2 million mortgage servicing rights (“MSR”) fair value adjustment compared to $0.6 million gain on the fair value adjustment of the MSR asset in the fourth quarter of 2019. Lower gains on foreclosed assets and reduced fees on customer-related interest rate swaps, included in other noninterest income, also contributed to noninterest income decline.

Relative to the first quarter of 2019, noninterest income decreased 29.9% from $7.5 million. The decline was primarily attributable to a larger negative MSR fair value adjustment and nonrecurring gains on sales of First Community Title Services, Inc. and HBT Insurance of $0.8 million in the first quarter 2019.

Noninterest Expense

Noninterest expense for the first quarter of 2020 was $23.3 million, compared with $22.0 million for the fourth quarter of 2019. The increase was primarily attributable to higher employee benefits expense, as first quarter of 2020 results included a $0.8 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019. The SERP liability varies inversely with interest rates and resulted in a $0.4 million benefit in the fourth quarter of 2019. The SERP will be liquidated in June 2020. In addition, an increase in medical benefit expenses were partially offset by a decrease in the cash-settled stock appreciation rights (SAR) liability due primarily to changes in the Company’s stock price. The employee benefits expense related to the cash-settled SAR liability resulted in a benefit of $0.3 million in the first quarter of 2020, an expense of $0.4 million in the fourth quarter 2019, and a benefit of $0.1 million in the first quarter of 2019. FDIC insurance expense was higher in the first quarter of 2020 due to the

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impact of the application of small bank assessment credits in the fourth quarter of 2019. Other noninterest and occupancy expenses increased in the first quarter of 2020, but were largely offset by lower loan collection and servicing and furniture and equipment expenses.

Relative to the first quarter of 2019, noninterest expense increased 4.9% from $22.2 million. The increase was primarily due to higher employee benefits costs associated with the SERP charge in the first quarter of 2020 and an increase in medical benefit expenses, as higher salaries and data processing costs were offset by lower furniture and equipment, FDIC insurance, and loan collection and servicing expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.13 billion at March 31, 2020, compared with $2.16 billion at December 31, 2019 and $2.18 billion at March 31, 2019. The $30.9 million decline in loans from December 31, 2019 was primarily due to a $39.2 million reduction in CRE – non-owner occupied balances, a $9.0 million decline in municipal, consumer and other loans, and a $7.9 million reduction in commercial and industrial balances, which were partially offset by a $20.9 million increase in agricultural and farmland loans, primarily due to the addition of a new senior lender in one of our markets at the beginning of the year, and a $7.4 million increase in construction and land development loans.

Deposits

Total deposits were $2.73 billion at March 31, 2020, compared with $2.78 billion at December 31, 2019, and $2.82 billion at March 31, 2019. The $46.6 million decrease in total deposits from December 31, 2019 included expected outflows from a small number of retail deposit accounts that had increased by $40.2 million in the fourth quarter of 2019. Declines in time, noninterest-bearing, interest-bearing demand and money market balances more than offset a modest increase in savings deposit balances in the first quarter of 2020.

Asset Quality

Nonperforming loans totaled $15.4 million, or 0.72% of total loans, at March 31, 2020, compared with $19.0 million, or 0.88% of total loans, at December 31, 2019, and $13.9 million, or 0.64% of total loans, at March 31, 2019. The decline in nonperforming loans from the end of the prior quarter was primarily attributable to payoffs and paydowns.

The Company recorded a provision for loan losses of $4.4 million for the first quarter of 2020, compared with $0.1 million for the fourth quarter of 2019. The increase in provision for loan losses was primarily due to $3.3 million reserve build related to adjustments to qualitative factors to reflect the economic weakness resulting from the COVID-19 pandemic. The remaining $1.1 million of the provision was primarily due to a $1.3 million increase in a specific reserve related to one credit offset by a decrease in specific reserves related to several other credits.

Net charge-offs for the first quarter of 2020 were $0.6 million, or 0.11% of average loans on an annualized basis compared to $0.6 million, or 0.11% of average loans on an annualized basis, for the fourth quarter of 2019, and $0.3 million, or 0.05% of average loans on an annualized basis, for the first quarter of 2019.

The Company’s allowance for loan losses was 1.22% of total loans and 169.70% of nonperforming loans at March 31, 2020, compared with 1.03% of total loans and 117.06% of nonperforming loans at December 31, 2019.

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Capital

At March 31, 2020, the Company exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’, as summarized in the following table:

|  | Well Capitalized
| March 31, | Regulatory
| 2020 | Requirements
Total capital to risk-weighted assets | 15.03 | % | 10.00 | %
Tier 1 capital to risk-weighted assets | 13.95 | % | 8.00 | %
Common equity tier 1 capital ratio | 12.44 | % | 6.50 | %
Tier 1 leverage ratio | 10.70 | % | 5.00 | %
Total stockholders' equity to total assets | 10.58 | % | N/A |
Tangible common equity to tangible assets (1) | 9.81 | % | N/A |

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and State Bank of Lincoln. The banks provide a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois through 64 branches. As of March 31, 2020, HBT had total assets of $3.2 billion, total loans of $2.1 billion, and total deposits of $2.7 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back 100 years.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), originated loans and acquired loans and any ratios derived therefrom, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. 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 directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals, future earnings levels, and future loan growth. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois in particular, including in the financial markets; changes in business plans as

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circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACT:

Matthew Keating

HBTIR@hbtbank.com

(310) 622-823 0

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HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Statements of Income

|  | Three Months Ended
|  | March 31, |  | December 31, |  | March 31,
|  | 2020 |  | 2019 |  | 2019
INTEREST AND DIVIDEND INCOME |  | (dollars in thousands, except per share amounts)
Loans, including fees: |  |  |  |  |  |  |  |  |
Taxable |  | $ | 26,941 |  | $ | 28,039 |  | $ | 30,063
Federally tax exempt |  |  | 674 |  |  | 716 |  |  | 710
Securities: |  |  |  |  |  |  |  |  |
Taxable |  |  | 3,334 |  |  | 3,556 |  |  | 3,922
Federally tax exempt |  |  | 1,028 |  |  | 1,269 |  |  | 1,552
Interest-bearing deposits in bank |  |  | 729 |  |  | 1,006 |  |  | 687
Other interest and dividend income |  |  | 14 |  |  | 14 |  |  | 15
Total interest and dividend income |  |  | 32,720 |  |  | 34,600 |  |  | 36,949
INTEREST EXPENSE |  |  |  |  |  |  |  |  |
Deposits |  |  | 1,595 |  |  | 1,838 |  |  | 1,983
Securities sold under agreements to repurchase |  |  | 20 |  |  | 24 |  |  | 14
Borrowings |  |  | — |  |  | 2 |  |  | 3
Subordinated debentures |  |  | 443 |  |  | 460 |  |  | 497
Total interest expense |  |  | 2,058 |  |  | 2,324 |  |  | 2,497
Net interest income |  |  | 30,662 |  |  | 32,276 |  |  | 34,452
PROVISION FOR LOAN LOSSES |  |  | 4,355 |  |  | 138 |  |  | 776
Net interest income after provision for loan losses |  |  | 26,307 |  |  | 32,138 |  |  | 33,676
NONINTEREST INCOME |  |  |  |  |  |  |  |  |
Card income |  |  | 1,792 |  |  | 1,952 |  |  | 1,832
Service charges on deposit accounts |  |  | 1,834 |  |  | 2,065 |  |  | 1,763
Wealth management fees |  |  | 1,814 |  |  | 1,911 |  |  | 1,747
Mortgage servicing |  |  | 724 |  |  | 801 |  |  | 729
Mortgage servicing rights fair value adjustment |  |  | (2,171) |  |  | 582 |  |  | (1,002)
Gains on sale of mortgage loans |  |  | 536 |  |  | 915 |  |  | 525
Gains (losses) on securities |  |  | (52) |  |  | (47) |  |  | 79
Gains (losses) on foreclosed assets |  |  | 35 |  |  | 808 |  |  | (17)
Gains (losses) on other assets |  |  | (3) |  |  | — |  |  | 905
Title insurance activity |  |  | — |  |  | — |  |  | 129
Other noninterest income |  |  | 743 |  |  | 1,349 |  |  | 797
Total noninterest income |  |  | 5,252 |  |  | 10,336 |  |  | 7,487
NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |
Salaries |  |  | 12,754 |  |  | 12,581 |  |  | 12,522
Employee benefits |  |  | 2,434 |  |  | 1,663 |  |  | 1,244
Occupancy of bank premises |  |  | 1,828 |  |  | 1,607 |  |  | 1,837
Furniture and equipment |  |  | 603 |  |  | 763 |  |  | 789
Data processing |  |  | 1,586 |  |  | 1,547 |  |  | 1,162
Marketing and customer relations |  |  | 1,044 |  |  | 1,036 |  |  | 933
Amortization of intangible assets |  |  | 317 |  |  | 336 |  |  | 376
FDIC insurance |  |  | 36 |  |  | (237) |  |  | 219
Loan collection and servicing |  |  | 348 |  |  | 732 |  |  | 742
Foreclosed assets |  |  | 89 |  |  | 151 |  |  | 164
Other noninterest expense |  |  | 2,268 |  |  | 1,771 |  |  | 2,224
Total noninterest expense |  |  | 23,307 |  |  | 21,950 |  |  | 22,212
INCOME BEFORE INCOME TAX EXPENSE |  |  | 8,252 |  |  | 20,524 |  |  | 18,951
INCOME TAX EXPENSE |  |  | 2,031 |  |  | 4,437 |  |  | 215
NET INCOME |  | $ | 6,221 |  | $ | 16,087 |  | $ | 18,736
EARNINGS PER SHARE - BASIC |  | $ | 0.23 |  | $ | 0.61 |  | $ | 1.04
EARNINGS PER SHARE - DILUTED |  | $ | 0.23 |  | $ | 0.61 |  | $ | 1.04
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING |  |  | 27,457,306 |  |  | 26,211,282 |  |  | 18,027,512
PRO FORMA C CORP EQUIVALENT INFORMATION |  |  |  |  |  |  |  |  |
Historical income before income tax expense |  |  |  |  | $ | 20,524 |  | $ | 18,951
Pro forma C Corp equivalent income tax expense |  |  |  |  |  | 5,436 |  |  | 4,915
Pro forma C Corp equivalent net income |  |  |  |  | $ | 15,088 |  | $ | 14,036
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC |  |  |  |  | $ | 0.58 |  | $ | 0.78
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED |  |  |  |  | $ | 0.58 |  | $ | 0.78

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HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets

|  | March 31, |  | December 31, |  | March 31,
|  | 2020 |  | 2019 |  | 2019
|  | (dollars in thousands)
ASSETS |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 34,782 |  | $ | 22,112 |  | $ | 17,984
Interest-bearing deposits with banks |  |  | 230,654 |  |  | 261,859 |  |  | 142,518
Cash and cash equivalents |  |  | 265,436 |  |  | 283,971 |  |  | 160,502
Interest-bearing time deposits with banks |  |  | — |  |  | 248 |  |  | 248
Debt securities available-for-sale, at fair value |  |  | 615,565 |  |  | 592,404 |  |  | 681,233
Debt securities held-to-maturity |  |  | 79,741 |  |  | 88,477 |  |  | 116,745
Equity securities |  |  | 4,759 |  |  | 4,389 |  |  | 3,994
Restricted stock, at cost |  |  | 2,425 |  |  | 2,425 |  |  | 2,719
Loans held for sale |  |  | 4,805 |  |  | 4,531 |  |  | 2,496
Loans, before allowance for loan losses |  |  | 2,132,952 |  |  | 2,163,826 |  |  | 2,183,322
Allowance for loan losses |  |  | (26,087) |  |  | (22,299) |  |  | (21,013)
Loans, net of allowance for loan losses |  |  | 2,106,865 |  |  | 2,141,527 |  |  | 2,162,309
Bank premises and equipment, net |  |  | 54,135 |  |  | 53,987 |  |  | 54,185
Bank premises held for sale |  |  | 121 |  |  | 121 |  |  | 208
Foreclosed assets |  |  | 4,469 |  |  | 5,099 |  |  | 10,151
Goodwill |  |  | 23,620 |  |  | 23,620 |  |  | 23,620
Core deposit intangible assets, net |  |  | 3,713 |  |  | 4,030 |  |  | 5,077
Mortgage servicing rights, at fair value |  |  | 6,347 |  |  | 8,518 |  |  | 9,916
Investments in unconsolidated subsidiaries |  |  | 1,165 |  |  | 1,165 |  |  | 1,165
Accrued interest receivable |  |  | 12,096 |  |  | 13,951 |  |  | 15,256
Other assets |  |  | 27,847 |  |  | 16,640 |  |  | 7,843
Total assets |  | $ | 3,213,109 |  | $ | 3,245,103 |  | $ | 3,257,667
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 676,341 |  | $ | 689,116 |  | $ | 661,527
Interest-bearing |  |  | 2,053,962 |  |  | 2,087,739 |  |  | 2,159,916
Total deposits |  |  | 2,730,303 |  |  | 2,776,855 |  |  | 2,821,443
Securities sold under agreements to repurchase |  |  | 40,811 |  |  | 44,433 |  |  | 40,528
Subordinated debentures |  |  | 37,599 |  |  | 37,583 |  |  | 37,533
Other liabilities |  |  | 64,583 |  |  | 53,314 |  |  | 29,570
Total liabilities |  |  | 2,873,296 |  |  | 2,912,185 |  |  | 2,929,074
Stockholders' Equity |  |  |  |  |  |  |  |  |
Common stock |  |  | 275 |  |  | 275 |  |  | 181
Surplus |  |  | 190,591 |  |  | 190,524 |  |  | 32,288
Retained earnings |  |  | 136,378 |  |  | 134,287 |  |  | 298,131
Accumulated other comprehensive income |  |  | 12,569 |  |  | 7,832 |  |  | 1,012
Less cost of treasury stock held |  |  | — |  |  | — |  |  | (3,019)
Total stockholders’ equity |  |  | 339,813 |  |  | 332,918 |  |  | 328,593
Total liabilities and stockholders’ equity |  | $ | 3,213,109 |  | $ | 3,245,103 |  | $ | 3,257,667
SHARE INFORMATION |  |  |  |  |  |  |  |  |
Ending number shares of common stock outstanding |  |  | 27,457,306 |  |  | 27,457,306 |  |  | 18,027,512

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HBT Financial, Inc.

Consolidated Financial Summary

|  | March 31, |  | December 31, |  | March 31,
|  | 2020 |  | 2019 |  | 2019
|  | (dollars in thousands)
LOANS |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 299,266 |  | $ | 307,175 |  | $ | 363,918
Agricultural and farmland |  |  | 228,701 |  |  | 207,776 |  |  | 207,817
Commercial real estate - owner occupied |  |  | 229,608 |  |  | 231,162 |  |  | 250,274
Commercial real estate - non-owner occupied |  |  | 540,515 |  |  | 579,757 |  |  | 556,386
Multi-family |  |  | 177,172 |  |  | 179,073 |  |  | 146,374
Construction and land development |  |  | 232,311 |  |  | 224,887 |  |  | 223,489
One-to-four family residential |  |  | 313,925 |  |  | 313,580 |  |  | 321,224
Municipal, consumer, and other |  |  | 111,454 |  |  | 120,416 |  |  | 113,840
Loans, before allowance for loan losses |  | $ | 2,132,952 |  | $ | 2,163,826 |  | $ | 2,183,322

|  | March 31, |  | December 31, |  | March 31,
|  | 2020 |  | 2019 |  | 2020
|  | (dollars in thousands)
DEPOSITS |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 676,341 |  | $ | 689,116 |  | $ | 661,527
Interest-bearing demand |  |  | 810,074 |  |  | 814,639 |  |  | 819,313
Money market |  |  | 472,532 |  |  | 477,765 |  |  | 453,117
Savings |  |  | 444,137 |  |  | 438,927 |  |  | 435,353
Time |  |  | 327,219 |  |  | 356,408 |  |  | 452,133
Total deposits |  | $ | 2,730,303 |  | $ | 2,776,855 |  | $ | 2,821,443

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HBT Financial, Inc.

Consolidated Financial Summary

|  | Three Months Ended |
|  | March 31, 2020 |  | December 31, 2019 |  | March 31, 2019 |
|  | Average |  |  |  |  | * |  | Average |  |  |  |  | * |  | Average |  |  |  |  | * |
|  | Balance |  | Interest |  | Yield/Cost |  | Balance |  | Interest |  | Yield/Cost |  | Balance |  | Interest |  | Yield/Cost |
|  | (dollars in thousands) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 2,141,031 |  | $ | 27,615 |  | 5.16 | % | $ | 2,162,975 |  | $ | 28,755 |  | 5.32 | % | $ | 2,164,330 |  | $ | 30,773 |  | 5.69 | %
Securities |  |  | 668,572 |  |  | 4,362 |  | 2.61 |  |  | 700,441 |  |  | 4,825 |  | 2.76 |  |  | 806,504 |  |  | 5,474 |  | 2.71 |
Deposits with banks |  |  | 251,058 |  |  | 729 |  | 1.16 |  |  | 265,237 |  |  | 1,006 |  | 1.51 |  |  | 131,663 |  |  | 687 |  | 2.09 |
Other |  |  | 2,425 |  |  | 14 |  | 2.37 |  |  | 2,425 |  |  | 14 |  | 2.39 |  |  | 2,719 |  |  | 15 |  | 2.24 |
Total interest-earning assets |  |  | 3,063,086 |  | $ | 32,720 |  | 4.27 | % |  | 3,131,078 |  | $ | 34,600 |  | 4.42 | % |  | 3,105,216 |  | $ | 36,949 |  | 4.76 | %
Allowance for loan losses |  |  | (22,474) |  |  |  |  |  |  |  | (22,766) |  |  |  |  |  |  |  | (20,441) |  |  |  |  |  |
Noninterest-earning assets |  |  | 148,131 |  |  |  |  |  |  |  | 152,961 |  |  |  |  |  |  |  | 148,518 |  |  |  |  |  |
Total assets |  | $ | 3,188,743 |  |  |  |  |  |  | $ | 3,261,273 |  |  |  |  |  |  | $ | 3,233,293 |  |  |  |  |  |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand |  | $ | 811,866 |  | $ | 251 |  | 0.12 | % | $ | 820,390 |  | $ | 299 |  | 0.15 | % | $ | 826,456 |  | $ | 417 |  | 0.20 | %
Money market |  |  | 464,124 |  |  | 394 |  | 0.34 |  |  | 486,288 |  |  | 481 |  | 0.40 |  |  | 442,520 |  |  | 370 |  | 0.33 |
Savings |  |  | 434,276 |  |  | 70 |  | 0.06 |  |  | 434,241 |  |  | 71 |  | 0.07 |  |  | 424,986 |  |  | 68 |  | 0.06 |
Time |  |  | 341,770 |  |  | 880 |  | 1.03 |  |  | 359,731 |  |  | 987 |  | 1.10 |  |  | 432,877 |  |  | 1,128 |  | 1.04 |
Total interest-bearing deposits |  |  | 2,052,036 |  |  | 1,595 |  | 0.31 |  |  | 2,100,650 |  |  | 1,838 |  | 0.35 |  |  | 2,126,839 |  |  | 1,983 |  | 0.37 |
Securities sold under agreements to repurchase |  |  | 41,968 |  |  | 20 |  | 0.19 |  |  | 46,028 |  |  | 24 |  | 0.21 |  |  | 42,089 |  |  | 14 |  | 0.13 |
Borrowings |  |  | 221 |  |  | — |  | 0.52 |  |  | 272 |  |  | 2 |  | 2.60 |  |  | 557 |  |  | 3 |  | 2.56 |
Subordinated debentures |  |  | 37,589 |  |  | 443 |  | 4.72 |  |  | 37,577 |  |  | 460 |  | 4.90 |  |  | 37,528 |  |  | 497 |  | 5.30 |
Total interest-bearing liabilities |  |  | 2,131,814 |  | $ | 2,058 |  | 0.39 | % |  | 2,184,527 |  | $ | 2,324 |  | 0.43 | % |  | 2,207,013 |  | $ | 2,497 |  | 0.45 | %
Noninterest-bearing deposits |  |  | 670,714 |  |  |  |  |  |  |  | 699,373 |  |  |  |  |  |  |  | 650,630 |  |  |  |  |  |
Noninterest-bearing liabilities |  |  | 44,696 |  |  |  |  |  |  |  | 45,589 |  |  |  |  |  |  |  | 28,493 |  |  |  |  |  |
Total liabilities |  |  | 2,847,224 |  |  |  |  |  |  |  | 2,929,489 |  |  |  |  |  |  |  | 2,886,136 |  |  |  |  |  |
Stockholders' Equity |  |  | 341,519 |  |  |  |  |  |  |  | 331,784 |  |  |  |  |  |  |  | 347,157 |  |  |  |  |  |
Total liabilities and stockholders’ equity |  | $ | 3,188,743 |  |  |  |  |  |  | $ | 3,261,273 |  |  |  |  |  |  | $ | 3,233,293 |  |  |  |  |  |
Net interest income/Net interest margin (3) |  |  |  |  | $ | 30,662 |  | 4.00 | % |  |  |  | $ | 32,276 |  | 4.12 | % |  |  |  | $ | 34,452 |  | 4.44 | %
Tax-equivalent adjustment (2) |  |  |  |  |  | 463 |  | 0.06 |  |  |  |  |  | 534 |  | 0.07 |  |  |  |  |  | 610 |  | 0.08 |
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2) |  |  |  |  | $ | 31,125 |  | 4.06 | % |  |  |  | $ | 32,810 |  | 4.19 | % |  |  |  | $ | 35,062 |  | 4.52 | %
Net interest rate spread (4) |  |  |  |  |  |  |  | 3.88 | % |  |  |  |  |  |  | 3.99 | % |  |  |  |  |  |  | 4.31 | %
Net interest-earning assets (5) |  | $ | 931,272 |  |  |  |  |  |  | $ | 946,551 |  |  |  |  |  |  | $ | 898,203 |  |  |  |  |  |
Ratio of interest-earning assets to interest-bearing liabilities |  |  | 1.44 |  |  |  |  |  |  |  | 1.43 |  |  |  |  |  |  |  | 1.41 |  |  |  |  |  |
Cost of total deposits |  |  |  |  |  |  |  | 0.23 | % |  |  |  |  |  |  | 0.26 | % |  |  |  |  |  |  | 0.29 | %

* Annualized measure.

| (1) |  | See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

| (2) |  | On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

| (3) |  | Net interest margin represents net interest income divided by average total interest-earning assets.

| (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.

HBT Financial, Inc.

Page 10 of 15

HBT Financial, Inc.

Consolidated Financial Summary

|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
NONPERFORMING ASSETS |  |  |  |  |  |  |  |  |  |
Nonaccrual |  | $ | 15,372 |  | $ | 19,019 |  | $ | 13,877 |
Past due 90 days or more, still accruing (1) |  |  | — |  |  | 30 |  |  | 53 |
Total nonperforming loans |  |  | 15,372 |  |  | 19,049 |  |  | 13,930 |
Foreclosed assets |  |  | 4,469 |  |  | 5,099 |  |  | 10,151 |
Total nonperforming assets |  | $ | 19,841 |  | $ | 24,148 |  | $ | 24,081 |
NONPERFORMING ASSETS (Originated) (2) |  |  |  |  |  |  |  |  |  |
Nonaccrual |  | $ | 10,041 |  | $ | 10,811 |  | $ | 8,619 |
Past due 90 days or more, still accruing |  |  | — |  |  | 30 |  |  | 53 |
Total nonperforming loans (originated) |  |  | 10,041 |  |  | 10,841 |  |  | 8,672 |
Foreclosed assets |  |  | 965 |  |  | 1,022 |  |  | 1,439 |
Total nonperforming (originated) |  | $ | 11,006 |  | $ | 11,863 |  | $ | 10,111 |
NONPERFORMING ASSETS (Acquired) (2) |  |  |  |  |  |  |  |  |  |
Nonaccrual |  | $ | 5,331 |  | $ | 8,208 |  | $ | 5,258 |
Past due 90 days or more, still accruing (1) |  |  | — |  |  | — |  |  | — |
Total nonperforming loans (acquired) |  |  | 5,331 |  |  | 8,208 |  |  | 5,258 |
Foreclosed assets |  |  | 3,504 |  |  | 4,077 |  |  | 8,712 |
Total nonperforming assets (acquired) |  | $ | 8,835 |  | $ | 12,285 |  | $ | 13,970 |
Allowance for loan losses |  | $ | 26,087 |  | $ | 22,299 |  | $ | 21,013 |
Loans, before allowance for loan losses |  | $ | 2,132,952 |  | $ | 2,163,826 |  | $ | 2,183,322 |
Loans, before allowance for loan losses (originated) (2) |  |  | 1,982,067 |  |  | 1,998,496 |  |  | 1,974,840 |
Loans, before allowance for loan losses (acquired) (2) |  |  | 150,885 |  |  | 165,330 |  |  | 208,482 |
CREDIT QUALITY RATIOS |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to loans, before allowance for loan losses |  |  | 1.22 | % |  | 1.03 | % |  | 0.96 | %
Allowance for loan losses to nonperforming loans |  |  | 169.70 |  |  | 117.06 |  |  | 150.85 |
Nonperforming loans to loans, before allowance for loan losses |  |  | 0.72 |  |  | 0.88 |  |  | 0.64 |
Nonperforming assets to total assets |  |  | 0.62 |  |  | 0.74 |  |  | 0.74 |
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets |  |  | 0.93 |  |  | 1.11 |  |  | 1.10 |
CREDIT QUALITY RATIOS (Originated) (2) |  |  |  |  |  |  |  |  |  |
Nonperforming loans to loans, before allowance for loan losses |  |  | 0.51 | % |  | 0.54 | % |  | 0.44 | %
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets |  |  | 0.56 |  |  | 0.59 |  |  | 0.51 |
CREDIT QUALITY RATIOS (Acquired) (2) |  |  |  |  |  |  |  |  |  |
Nonperforming loans to loans, before allowance for loan losses |  |  | 3.53 | % |  | 4.96 | % |  | 2.52 | %
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets |  |  | 5.72 |  |  | 7.25 |  |  | 6.43 |

| (1) |  | Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.3 million, $0.1 million, and $2.5 million as of March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

| (2) |  | Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.

Page 11 of 15

HBT Financial, Inc.

Consolidated Financial Summary

|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
ALLOWANCE FOR LOAN LOSSES |  | (dollars in thousands) |
Beginning balance |  | $ | 22,299 |  | $ | 22,761 |  | $ | 20,509 |
Provision |  |  | 4,355 |  |  | 138 |  |  | 776 |
Charge-offs |  |  | (1,221) |  |  | (837) |  |  | (533) |
Recoveries |  |  | 654 |  |  | 237 |  |  | 261 |
Ending balance |  | $ | 26,087 |  | $ | 22,299 |  | $ | 21,013 |
Net charge-offs (recoveries) |  | $ | 567 |  | $ | 600 |  | $ | 272 |
Net charge-offs (recoveries) - (originated) (1) |  |  | 172 |  |  | 550 |  |  | 196 |
Net charge-offs (recoveries) - (acquired) (1) |  |  | 395 |  |  | 50 |  |  | 76 |
Average loans, before allowance for loan losses |  | $ | 2,141,031 |  | $ | 2,162,975 |  | $ | 2,164,330 |
Average loans, before allowance for loan losses (originated) (1) |  |  | 1,984,066 |  |  | 1,988,658 |  |  | 1,946,035 |
Average loans, before allowance for loan losses (acquired) (1) |  |  | 156,965 |  |  | 174,317 |  |  | 218,295 |
Net charge-offs to average loans, before allowance for loan losses * |  |  | 0.11 | % |  | 0.11 | % |  | 0.05 | %
Net charge-offs to average loans, before allowance for loan losses (originated) * (1) |  |  | 0.03 |  |  | 0.11 |  |  | 0.04 |
Net charge-offs to average loans, before allowance for loan losses (acquired) * (1) |  |  | 1.01 |  |  | 0.11 |  |  | 0.14 |

* Annualized measure.

| (1) |  | Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.

Page 12 of 15

HBT Financial, Inc.

Consolidated Financial Summary

|  | As of or for the Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands, except per share amounts) |
EARNINGS AND PER SHARE INFORMATION |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 6,221 |  | $ | 16,087 |  | $ | 18,736 |
Earnings per share - Basic |  |  | 0.23 |  |  | 0.61 |  |  | 1.04 |
Earnings per share - Diluted |  |  | 0.23 |  |  | 0.61 |  |  | 1.04 |
C Corp equivalent net income (1) |  |  | N/A |  | $ | 15,088 |  | $ | 14,036 |
C Corp equivalent earnings per share - Basic (1) |  |  | N/A |  |  | 0.58 |  |  | 0.78 |
C Corp equivalent earnings per share - Diluted (1) |  |  | N/A |  |  | 0.58 |  |  | 0.78 |
Book value per share |  | $ | 12.38 |  | $ | 12.12 |  | $ | 18.23 |
Ending number shares of common stock outstanding |  |  | 27,457,306 |  |  | 27,457,306 |  |  | 18,027,512 |
Weighted average shares of common stock outstanding |  |  | 27,457,306 |  |  | 26,211,282 |  |  | 18,027,512 |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |
Return on average assets * |  |  | 0.78 | % |  | 1.97 | % |  | 2.32 | %
Return on average stockholders' equity * |  |  | 7.29 |  |  | 19.39 |  |  | 21.59 |
Net interest margin * |  |  | 4.00 | % |  | 4.12 | % |  | 4.44 | %
Efficiency ratio |  |  | 64.01 |  |  | 50.72 |  |  | 52.07 |
C Corp equivalent return on average assets * (1) |  |  | N/A |  |  | 1.85 | % |  | 1.74 | %
C Corp equivalent return on average stockholders' equity * (1) |  |  | N/A |  |  | 18.19 |  |  | 16.17 |
NON-GAAP FINANCIAL MEASURES |  |  |  |  |  |  |  |  |  |
Adjusted net income (2) |  | $ | 8,379 |  | $ | 14,417 |  | $ | 14,359 |
Adjusted earnings per share - Basic (2) |  |  | 0.30 |  |  | 0.55 |  |  | 0.80 |
Adjusted earnings per share - Diluted (2) |  |  | 0.30 |  |  | 0.55 |  |  | 0.80 |
Tangible book value per share (2) |  | $ | 11.38 |  | $ | 11.12 |  | $ | 16.64 |
Net interest margin (tax equivalent basis) * (2) |  |  | 4.06 | % |  | 4.19 | % |  | 4.52 | %
Efficiency ratio (tax equivalent basis) (2) |  |  | 63.20 |  |  | 50.10 |  |  | 51.32 |
Adjusted return on average assets * (2) |  |  | 1.05 | % |  | 1.77 | % |  | 1.78 | %
Adjusted return on average stockholders' equity * (2) |  |  | 9.81 |  |  | 17.38 |  |  | 16.54 |
Return on average tangible common equity * (2) |  |  | 7.92 | % |  | 21.17 | % |  | 23.55 | %
C Corp equivalent return on average tangible common equity * (1) (2) |  |  | N/A |  |  | 19.86 |  |  | 17.64 |
Adjusted return on average tangible common equity * (2) |  |  | 10.67 |  |  | 18.97 |  |  | 18.05 |

* Annualized measure.

| (1) |  | Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

| (2) |  | See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

N/A Not applicable.

HBT Financial, Inc.

Page 13 of 15

Reconciliation of Non-GAAP Financial Measures –

Adjusted Net Income and Adjusted Return on Average Assets

|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
Net income |  | $ | 6,221 |  | $ | 16,087 |  | $ | 18,736 |
C Corp equivalent adjustment (2) |  |  | — |  |  | (999) |  |  | (4,700) |
C Corp equivalent net income (2) |  |  | 6,221 |  |  | 15,088 |  |  | 14,036 |
Adjustments: |  |  |  |  |  |  |  |  |  |
Net earnings (losses) from closed or sold operations, including gains on sale (1) |  |  | — |  |  | (9) |  |  | 550 |
Charges related to termination of certain employee benefit plans |  |  | (848) |  |  | 365 |  |  | — |
Mortgage servicing rights fair value adjustment |  |  | (2,171) |  |  | 582 |  |  | (1,002) |
Total adjustments |  |  | (3,019) |  |  | 938 |  |  | (452) |
Tax effect of adjustments |  |  | 861 |  |  | (267) |  |  | 129 |
Less adjustments after tax effect |  |  | (2,158) |  |  | 671 |  |  | (323) |
Adjusted net income |  | $ | 8,379 |  | $ | 14,417 |  | $ | 14,359 |
Average assets |  | $ | 3,188,743 |  | $ | 3,261,273 |  | $ | 3,233,293 |
Return on average assets * |  |  | 0.78 | % |  | 1.97 | % |  | 2.32 | %
C Corp equivalent return on average assets * (2) |  |  | N/A |  |  | 1.85 |  |  | 1.74 |
Adjusted return on average assets * |  |  | 1.05 |  |  | 1.77 |  |  | 1.78 |

* Annualized measure.

| (1) |  | Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.

| (2) |  | Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A Not applicable.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share

|  | Three Months Ended
|  | March 31, |  | December 31, |  | March 31,
|  | 2020 |  | 2019 |  | 2019
|  | (dollars in thousands, except per share amounts)
Numerator: |  |  |  |  |  |  |  |  |
Net income |  | $ | 6,221 |  | $ | 16,087 |  | $ | 18,736
Earnings allocated to unvested restricted stock units (1) |  |  | (15) |  |  | — |  |  | —
Numerator for earnings per share - basic and diluted |  | $ | 6,206 |  | $ | 16,087 |  | $ | 18,736
C Corp equivalent net income (3) |  |  | N/A |  | $ | 15,088 |  | $ | 14,036
Earnings allocated to unvested restricted stock units (1) (3) |  |  | N/A |  |  | — |  |  | —
Numerator for C Corp equivalent earnings per share - basic and diluted (3) |  |  | N/A |  | $ | 15,088 |  | $ | 14,036
Adjusted net income |  | $ | 8,379 |  | $ | 14,417 |  | $ | 14,359
Earnings allocated to unvested restricted stock units (1) |  |  | (19) |  |  | — |  |  | —
Numerator for adjusted earnings per share - basic and diluted |  | $ | 8,360 |  | $ | 14,417 |  | $ | 14,359
Denominator: |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding |  |  | 27,457,306 |  |  | 26,211,282 |  |  | 18,027,512
Dilutive effect of outstanding restricted stock units (2) |  |  | — |  |  | — |  |  | —
Weighted average common shares outstanding, including all dilutive potential shares |  |  | 27,457,306 |  |  | 26,211,282 |  |  | 18,027,512
Earnings per share - Basic |  | $ | 0.23 |  | $ | 0.61 |  | $ | 1.04
Earnings per share - Diluted |  | $ | 0.23 |  | $ | 0.61 |  | $ | 1.04
C Corp equivalent earnings per share - Basic (3) |  |  | N/A |  | $ | 0.58 |  | $ | 0.78
C Corp equivalent earnings per share - Diluted (3) |  |  | N/A |  | $ | 0.58 |  | $ | 0.78
Adjusted earnings per share - Basic |  | $ | 0.30 |  | $ | 0.55 |  | $ | 0.80
Adjusted earnings per share - Diluted |  | $ | 0.30 |  | $ | 0.55 |  | $ | 0.80

| (1) |  | The Company has granted restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

| (2) |  | Restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents during the three months ended March 31, 2020. There were no restricted stock units outstanding during the three months ended December 31, 2019 and March 31, 2019.

| (3) |  | Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A Not applicable.

HBT Financial, Inc.

Page 14 of 15

Reconciliation of Non-GAAP Financial Measures –

Net Interest Margin (Tax Equivalent Basis)

|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
Net interest income (tax equivalent basis) |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 30,662 |  | $ | 32,276 |  | $ | 34,452 |
Tax-equivalent adjustment (1) |  |  | 463 |  |  | 534 |  |  | 610 |
Net interest income (tax equivalent basis) (1) |  | $ | 31,125 |  | $ | 32,810 |  | $ | 35,062 |
Net interest margin (tax equivalent basis) |  |  |  |  |  |  |  |  |  |
Net interest margin * |  |  | 4.00 | % |  | 4.12 | % |  | 4.44 | %
Tax-equivalent adjustment * (1) |  |  | 0.06 |  |  | 0.07 |  |  | 0.08 |
Net interest margin (tax equivalent basis) * (1) |  |  | 4.06 | % |  | 4.19 | % |  | 4.52 | %
Average interest-earning assets |  | $ | 3,063,086 |  | $ | 3,131,078 |  | $ | 3,105,216 |

* Annualized measure.

| (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 Measures –

Efficiency Ratio (Tax Equivalent Basis)

|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
Efficiency ratio (tax equivalent basis) |  |  |  |  |  |  |  |  |  |
Total noninterest expense |  | $ | 23,307 |  | $ | 21,950 |  | $ | 22,212 |
Less: amortization of intangible assets |  |  | 317 |  |  | 336 |  |  | 376 |
Adjusted noninterest expense |  | $ | 22,990 |  | $ | 21,614 |  | $ | 21,836 |
Net interest income |  | $ | 30,662 |  | $ | 32,276 |  | $ | 34,452 |
Total noninterest income |  |  | 5,252 |  |  | 10,336 |  |  | 7,487 |
Operating revenue |  |  | 35,914 |  |  | 42,612 |  |  | 41,939 |
Tax-equivalent adjustment (1) |  |  | 463 |  |  | 534 |  |  | 610 |
Operating revenue (tax equivalent basis) (1) |  | $ | 36,377 |  | $ | 43,146 |  | $ | 42,549 |
Efficiency ratio |  |  | 64.01 | % |  | 50.72 | % |  | 52.07 | %
Efficiency ratio (tax equivalent basis) (1) |  |  | 63.20 |  |  | 50.10 |  |  | 51.32 |

| (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 Measures –

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
Tangible Common Equity |  |  |  |  |  |  |  |  |  |
Total stockholders' equity |  | $ | 339,813 |  | $ | 332,918 |  | $ | 328,593 |
Less: Goodwill |  |  | 23,620 |  |  | 23,620 |  |  | 23,620 |
Less: Core deposit intangible assets, net |  |  | 3,713 |  |  | 4,030 |  |  | 5,077 |
Tangible common equity |  | $ | 312,480 |  | $ | 305,268 |  | $ | 299,896 |
Tangible assets |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 3,213,109 |  | $ | 3,245,103 |  | $ | 3,257,667 |
Less: Goodwill |  |  | 23,620 |  |  | 23,620 |  |  | 23,620 |
Less: Core deposit intangible assets, net |  |  | 3,713 |  |  | 4,030 |  |  | 5,077 |
Tangible assets |  | $ | 3,185,776 |  | $ | 3,217,453 |  | $ | 3,228,970 |
Total stockholders' equity to total assets |  |  | 10.58 | % |  | 10.26 | % |  | 10.09 | %
Tangible common equity to tangible assets |  |  | 9.81 |  |  | 9.49 |  |  | 9.29 |
Ending number shares of common stock outstanding |  |  | 27,457,306 |  |  | 27,457,306 |  |  | 18,027,512 |
Book value per share |  | $ | 12.38 |  | $ | 12.12 |  | $ | 18.23 |
Tangible book value per share |  |  | 11.38 |  |  | 11.12 |  |  | 16.64 |

HBT Financial, Inc.

Page 15 of 15

Reconciliation of Non-GAAP Financial Measures –

Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity

|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
|  | 2020 |  | 2019 |  | 2019 |
|  | (dollars in thousands) |
Average Tangible Common Equity |  |  |  |  |  |  |  |  |  |
Total stockholders' equity |  | $ | 341,519 |  | $ | 331,784 |  | $ | 347,157 |
Less: Goodwill |  |  | 23,620 |  |  | 23,620 |  |  | 23,620 |
Less: Core deposit intangible assets, net |  |  | 3,898 |  |  | 4,224 |  |  | 5,301 |
Average tangible common equity |  | $ | 314,001 |  | $ | 303,940 |  | $ | 318,236 |
Net income |  | $ | 6,221 |  | $ | 16,087 |  | $ | 18,736 |
C Corp equivalent net income (1) |  |  | N/A |  |  | 15,088 |  |  | 14,036 |
Adjusted net income |  |  | 8,379 |  |  | 14,417 |  |  | 14,359 |
Return on average stockholders' equity * |  |  | 7.29 | % |  | 19.39 | % |  | 21.59 | %
C Corp equivalent return on average stockholders' equity * (1) |  |  | N/A |  |  | 18.19 |  |  | 16.17 |
Adjusted return on average stockholders' equity * |  |  | 9.81 |  |  | 17.38 |  |  | 16.54 |
Return on average tangible common equity * |  |  | 7.92 | % |  | 21.17 | % |  | 23.55 | %
C Corp equivalent return on average tangible common equity * (1) |  |  | N/A |  |  | 19.86 |  |  | 17.64 |
Adjusted return on average tangible common equity * |  |  | 10.67 |  |  | 18.97 |  |  | 18.05 |

* Annualized measure.

| (1) |  | Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period. No such adjustment is necessary for periods subsequent to 2019.

N/A Not applicable.