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REGULATORY MATTERS

3 Months Ended

Mar. 31, 2023

NOTE 13 – REGULATORY MATTERS

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. Additionally, 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.

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 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 debt 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 March 31, 2023 and December 31, 2022, the capital conservation buffer was 2.5% of risk-weighted assets.

As of March 31, 2023, the Company and the Bank each met all capital adequacy requirements to which they were subject.

The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
March 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	565,048	15.11	%	$	299,236	8.00	%		N/A	N/A
Heartland Bank and Trust Company		560,249	15.00			298,729	8.00		$	373,411	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	492,111	13.16	%	$	224,427	6.00	%		N/A	N/A
Heartland Bank and Trust Company		526,727	14.11			224,047	6.00		$	298,729	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	440,979	11.79	%	$	168,320	4.50	%		N/A	N/A
Heartland Bank and Trust Company		526,727	14.11			168,035	4.50		$	242,717	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	492,111	10.29	%	$	191,227	4.00	%		N/A	N/A
Heartland Bank and Trust Company		526,727	11.03			190,973	4.00		$	238,716	5.00	%


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
December 31, 2022	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	516,556	16.27	%	$	254,052	8.00	%		N/A	N/A
Heartland Bank and Trust Company		489,316	15.43			253,643	8.00		$	317,054	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	451,828	14.23	%	$	190,539	6.00	%		N/A	N/A
Heartland Bank and Trust Company		463,983	14.63			190,233	6.00		$	253,643	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	415,213	13.07	%	$	142,904	4.50	%		N/A	N/A
Heartland Bank and Trust Company		463,983	14.63			142,674	4.50		$	206,085	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	451,828	10.48	%	$	172,427	4.00	%		N/A	N/A
Heartland Bank and Trust Company		463,983	10.78			172,240	4.00		$	215,300	5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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