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ACQUISITIONS | 3 Months Ended
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Mar. 31, 2022
ACQUISITIONS |
ACQUISITIONS | NOTE 2 – ACQUISITIONS NXT Bancorporation, Inc. On October 1, 2021, HBT Financial acquired 100% of the issued and outstanding common stock of NXT Bancorporation, Inc. (“NXT”), the holding company for NXT Bank, pursuant to an Agreement and Plan of Merger dated June 7, 2021. Under the Agreement and Plan of Merger, NXT merged with and into HBT Financial, with HBT Financial as the surviving entity, on October 1, 2021. Additionally, NXT Bank was merged with and into Heartland Bank, with Heartland Bank as the surviving entity, in December 2021. At the effective time of the merger, each share of NXT was converted into the right to receive 67.6783 shares of HBT Financial common stock, cash in lieu of fractional shares, and $400 in cash. There were 1,799,016 shares of HBT Financial common stock issued at the effective time of the acquisition with an aggregate market value of $29.3 million, based on the closing stock price of $16.27 on October 1, 2021. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Goodwill of $5.7 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and NXT, and is nondeductible for tax purposes. The acquisition of NXT provides an opportunity to utilize Heartland Bank’s existing excess liquidity to replace NXT Bank’s higher-cost funding. Additionally, Heartland Bank’s broader range of products and services, as well as a greater ability to meet larger borrowing needs, provides an opportunity to expand NXT Bank customer relationships. ​ The fair value of the assets acquired and liabilities assumed from NXT on the acquisition date were as follows (dollars in thousands):
​ | ​ | ​ | ​
​ |  | Fair Value
Assets acquired: | ​ | ​ | ​
Cash and cash equivalents | ​ | $ | 5,862
Interest-bearing time deposits with banks | ​ | ​ | 739
Debt securities | ​ | ​ | 18,295
Equity securities with readily determinable fair value | ​ | ​ | 43
Restricted stock | ​ | ​ | 796
Loans | ​ | ​ | 194,576
Bank owned life insurance | ​ | ​ | 7,352
Bank premises and equipment | ​ | ​ | 3,667
Core deposit intangible assets | ​ | ​ | 199
Mortgage servicing rights | ​ | ​ | 370
Accrued interest receivable | ​ | ​ | 886
Other assets | ​ | ​ | 1,340
Total assets acquired | ​ | ​ | 234,125
​ | ​ | ​ | ​
Liabilities assumed: | ​ | ​ | ​
Deposits | ​ | ​ | 181,586
Securities sold under agreements to repurchase | ​ | ​ | 4,080
FHLB advances | ​ | ​ | 12,625
Other liabilities | ​ | ​ | 1,633
Total liabilities assumed | ​ | ​ | 199,924
Net assets acquired | ​ | $ | 34,201
​ | ​ | ​ | ​
Consideration paid: | ​ | ​ | ​
Cash | ​ | $ | 10,633
Common stock | ​ | ​ | 29,270
Total consideration paid | ​ | $ | 39,903
​ | ​ | ​ | ​
Goodwill | ​ | $ | 5,702
​ The following table presents the acquired non-impaired loans as of the acquisition date (dollars in thousands):
​ | ​ | ​ | ​
Fair Value | ​ | $ | 194,576
Gross contractual amounts receivable | ​ | ​ | 196,104
Estimate of contractual cash flows not expected to be collected | ​ | ​ | 1,045
​ There were no loans acquired with deteriorated credit quality from NXT. ​ The following table provides the pro forma information for the results of operations for the three months ended March 31, 2021, as if the acquisition had occurred on January 1, 2020. The pro forma results combine the historical results of NXT into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2020. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for loan losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. ​
​ | ​ | ​ | ​
​ | ​ | Pro Forma
​ | ​ | Three Months Ended
(dollars in thousands, except per share data) | ​ | March 31, 2021
Total revenues (net interest income and noninterest income) | ​ | $ | 42,543
Net income | ​ | ​ | 15,970
Earnings per share - basic | ​ | ​ | 0.55
Earnings per share - diluted | ​ | ​ | 0.55
​

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