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REGULATORY CAPITAL
 12 Months Ended
Dec. 31, 2020
REGULATORY CAPITAL  
REGULATORY MATTERS

NOTE 21 – REGULATORY CAPITAL

The ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.

The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.

Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. As of December 31, 2020 and 2019, the capital conservation buffer was 2.5% of risk-weighted assets.

As of December 31, 2020,  the Company and the Bank meet all capital adequacy requirements to which they are subject.

The actual and required capital amounts and ratios of HBT Financial, Inc. (consolidated) and the Bank are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

For Capital
Adequacy
Purposes

 

To Be Well
Capitalized Under
Prompt Corrective
Action Provisions

 

December 31, 2020

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

 

 

 

(dollars in thousands)

 

Total Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

426,283

 
17.40

%  

$

195,970

 

8.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

382,511

 
15.63

 

 

195,787

 

8.00

 

$

244,733

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

356,410

 
14.55

%  

$

146,977

 

6.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

351,904

 
14.38

 

 

146,840

 

6.00

 

$

195,787

 

8.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

319,927

 
13.06

%  

$

110,233

 

4.50

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

351,904

 
14.38

 

 

110,130

 

4.50

 

$

159,077

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

356,410

 
9.94

%  

$

143,454

 

4.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

351,904

 
9.82

 

 

143,296

 

4.00

 

$

179,120

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual

 

For Capital
Adequacy
Purposes

 

To Be Well
Capitalized Under
Prompt Corrective
Action Provisions

 

December 31, 2019

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

 

 

 

(dollars in thousands)

 

Total Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

356,994

 
14.54

%  

$

196,358

 

8.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

315,516

 
14.02

 

 

180,071

 

8.00

 

$

225,088

 

10.00

%

State Bank of Lincoln

 

 

35,390

 
17.58

 

 

16,104

 

8.00

 

 

20,130

 

10.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

334,695

 
13.64

%  

$

147,268

 

6.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

295,385

 
13.12

 

 

135,053

 

6.00

 

$

180,071

 

8.00

%

State Bank of Lincoln

 

 

33,222

 
16.50

 

 

12,078

 

6.00

 

 

16,104

 

8.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk Weighted Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

298,277

 
12.15

%  

$

110,451

 

4.50

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

295,385

 
13.12

 

 

101,290

 

4.50

 

$

146,307

 

6.50

%

State Bank of Lincoln

 

 

33,222

 
16.50

 

 

9,058

 

4.50

 

 

13,084

 

6.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated HBT Financial, Inc.

 

$

334,695

 
10.38

%  

$

129,027

 

4.00

%  

 

N/A

 

N/A

 

Heartland Bank

 

 

295,385

 
10.25

 

 

115,281

 

4.00

 

$

144,102

 

5.00

%

State Bank of Lincoln

 

 

33,222

 
9.82

 

 

13,531

 

4.00

 

 

16,914

 

5.00