HBT 10-Q Quarterly Report March 31, 2025

HBT FINANCIAL, INC.

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hbt-20250331

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to

Commission file number: 001-39085

HBT Financial, Inc.

(Exact name of registrant as specified in its charter)


Delaware			37-1117216
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

401 North Hershey Rd Bloomington , Illinois 61704			( 309 ) 662-4444
(Address of principal executive offices, including zip code)			(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HBT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 23, 2025, there were 31,495,434 shares outstanding of the registrant’s common stock, $0.01 par value.

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TABLE OF CONTENTS

HBT Financial, Inc.


		Page

PART I. FINANCIAL INFORMATION		3
Item 1.	Consolidated Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statement of Changes in Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	78
Item 4.	Controls and Procedures	80
PART II. OTHER INFORMATION		81
Item 1.	Legal Proceedings	81
Item 1A.	Risk Factors	81
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	81
Item 3.	Defaults Upon Senior Securities	81
Item 4.	Mine Safety Disclosures	81
Item 5.	Other Information	82
Item 6.	Exhibits	82

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report are forward-looking statements. Forward-looking statements may include statements relating to our plans, strategies and expectations, near-term loan growth, net interest margin, mortgage banking profits, wealth management fees, expenses, asset quality, capital levels, continued earnings, and liquidity. Forward-looking statements are generally identifiable by use of the words "believe," "may," "will," "should," "could," "expect," "estimate," "intend," "anticipate," "project," "plan" or similar expressions. Forward-looking statements are frequently based on assumptions that may or may not materialize and are subject to numerous 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 the results anticipated or projected and which could materially and adversely affect our operating results, financial condition or prospects include, but are not limited to:

• the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints);

• effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders including tariffs, immigration policy, regulatory or other governmental agencies, foreign policy and tax regulations;

• the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events;

• new and revised accounting policies and practices, as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board;

• changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023;

• the imposition of tariffs or other governmental policies impacting the value of products produced by the Company's commercial borrowers;

• changes in interest rates and prepayment rates of the Company’s assets;

• increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers;

• changes in technology and the ability to develop and maintain secure and reliable electronic systems;

• unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated;

• the loss of key executives and employees, talent shortages and employee turnover;

• changes in consumer spending;

• unexpected outcomes or costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company;

• the economic impact on the Company and its customers of climate change, natural disasters and of exceptional weather occurrences such as tornadoes, floods and blizzards;

• fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates;

• credit risks and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio (including commercial real estate loans) and large loans to certain borrowers;

• the overall health of the local and national real estate market;

• the ability to maintain an adequate level of allowance for credit losses on loans;

• the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure;

• the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds;

• the level of nonperforming assets on our balance sheets;

• interruptions involving our information technology and communications systems or third-party servicers;

• the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud;

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• the effectiveness of the Company’s risk management framework and internal disclosure controls and procedures;

• our asset quality and any loan charge-offs;

• the effects of changes in interest rates on our net interest income, net interest margin, our investments, our loan originations, and our modeling estimates relating to interest rate changes;

• our access to sources of liquidity and capital to address our liquidity needs;

• our inability to receive dividends from the Bank, pay dividends to our common stockholders or satisfy obligations as they become due;

• the effects of problems encountered by other financial institutions;

• our ability to achieve organic loan and deposit growth and the composition of such growth;

• our ability to successfully develop and commercialize new or enhanced products and services;

• current and future business, economic and market conditions in the United States (“U.S.”) generally or in the States of Illinois and Iowa in particular;

• the geographic concentration of our operations in the States of Illinois and Iowa;

• our ability to attract and retain customer deposits;

• our ability to maintain the Bank’s reputation;

• possible impairment of our goodwill and other intangible assets;

• market perceptions associated with certain aspects of our business;

• our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002;

• the ability of the Company to manage the risks associated with the foregoing as well as anticipated; and

• the factors discussed in "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" or elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange (“SEC”) Commission on March 7, 2025.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update any forward-looking statement in the future, or to reflect circumstances and events that occur after the date on which the forward-looking statement was made.

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PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	(Unaudited)
(dollars in thousands, except per share data)	March 31, 2025		December 31, 2024
ASSETS
Cash and due from banks	$	25,005	$	29,552
Interest-bearing deposits with banks	186,586		108,140
Cash and cash equivalents	211,591		137,692


Debt securities available-for-sale, at fair value	706,135		698,049
Debt securities held-to-maturity (fair value of $ 445,762 at 2025 and $ 445,186 at 2024)	490,398		499,858
Equity securities with readily determinable fair value	3,323		3,315
Equity securities with no readily determinable fair value	2,629		2,629
Restricted stock, at cost	5,086		5,086
Loans held for sale	2,721		1,586

Loans, before allowance for credit losses	3,461,778		3,466,146
Allowance for credit losses	( 42,111 )		( 42,044 )
Loans, net of allowance for credit losses	3,419,667		3,424,102

Bank owned life insurance	24,153		23,989
Bank premises and equipment, net	67,272		66,758
Bank premises held for sale	190		317
Foreclosed assets	460		367
Goodwill	59,820		59,820
Intangible assets, net	17,148		17,843
Mortgage servicing rights, at fair value	18,519		18,827
Investments in unconsolidated subsidiaries	1,614		1,614
Accrued interest receivable	22,735		24,770
Other assets	38,731		46,280
Total assets	$	5,092,192	$	5,032,902

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,065,874	$	1,046,405
Interest-bearing	3,318,716		3,271,849
Total deposits	4,384,590		4,318,254

Securities sold under agreements to repurchase	2,698		28,969
Federal Home Loan Bank advances	7,209		13,231
Subordinated notes	39,573		39,553
Junior subordinated debentures issued to capital trusts	52,864		52,849
Other liabilities	40,201		35,441
Total liabilities	4,527,135		4,488,297

COMMITMENTS AND CONTINGENCIES (Note 14)

Stockholders' Equity
Preferred stock, $ 0.01 par value; 25,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $ 0.01 par value; 125,000,000 shares authorized; shares issued of 32,899,104 at 2025 and 32,827,039 at 2024; shares outstanding of 31,631,431 at 2025 and 31,559,366 at 2024	329		328
Surplus	297,024		297,297
Retained earnings	329,169		316,764
Accumulated other comprehensive income (loss)	( 38,446 )		( 46,765 )
Treasury stock at cost, 1,267,673 shares at 2025 and 1,267,673 at 2024	( 23,019 )		( 23,019 )
Total stockholders’ equity	565,057		544,605
Total liabilities and stockholders’ equity	$	5,092,192	$	5,032,902

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


	Three Months Ended March 31,
(dollars in thousands, except per share data)		2025		2024

INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable		$	53,369	$	51,926
Federally tax exempt		1,168		1,094
Debt securities:
Taxable		6,936		6,204
Federally tax exempt		469		597
Interest-bearing deposits in bank		1,065		1,952
Other interest and dividend income		131		188
Total interest and dividend income		63,138		61,961

INTEREST EXPENSE
Deposits		12,939		13,593
Securities sold under agreements to repurchase		22		152
Borrowings		109		125
Subordinated notes		470		470
Junior subordinated debentures issued to capital trusts		890		933
Total interest expense		14,430		15,273
Net interest income		48,708		46,688
PROVISION FOR CREDIT LOSSES		576		527
Net interest income after provision for credit losses		48,132		46,161

NONINTEREST INCOME
Card income		2,548		2,616
Wealth management fees		2,841		2,547
Service charges on deposit accounts		1,944		1,869
Mortgage servicing		990		1,055
Mortgage servicing rights fair value adjustment		( 308 )		80
Gains on sale of mortgage loans		252		298
Realized gains (losses) on sales of securities		—		( 3,382 )
Unrealized gains (losses) on equity securities		8		( 16 )
Gains (losses) on foreclosed assets		13		87
Gains (losses) on other assets		54		( 635 )
Income on bank owned life insurance		164		164
Other noninterest income		800		943
Total noninterest income		9,306		5,626

NONINTEREST EXPENSE
Salaries		17,053		16,657
Employee benefits		3,285		2,805
Occupancy of bank premises		2,625		2,582
Furniture and equipment		445		550
Data processing		2,717		2,925
Marketing and customer relations		1,144		996
Amortization of intangible assets		695		710
FDIC insurance		562		560
Loan collection and servicing		383		452
Foreclosed assets		5		49
Other noninterest expense		3,021		2,982
Total noninterest expense		31,935		31,268
INCOME BEFORE INCOME TAX EXPENSE		25,503		20,519
INCOME TAX EXPENSE		6,428		5,261
NET INCOME		$	19,075	$	15,258

EARNINGS PER SHARE - BASIC		$	0.60	$	0.48
EARNINGS PER SHARE - DILUTED		$	0.60	$	0.48
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,584,989		31,662,954

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

NET INCOME		$	19,075	$	15,258

OTHER COMPREHENSIVE INCOME
Unrealized gains (losses) on debt securities available-for-sale		11,085		( 2,255 )
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income		—		3,382
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity		504		501
Unrealized gains on derivative instruments		1		64
Reclassification adjustment for net settlements on derivative instruments		( 36 )		( 132 )
Total other comprehensive income, before tax		11,554		1,560
Income tax expense		3,235		445
Total other comprehensive income		8,319		1,115
TOTAL COMPREHENSIVE INCOME		$	27,394	$	16,373

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)


	Common Stock							Accumulated Other Comprehensive Income (Loss)				Total Stockholders’ Equity
(dollars in thousands, except per share data)	Shares Outstanding	Amount		Surplus		Retained Earnings				Treasury Stock

Balance, December 31, 2024	31,559,366	$	328	$	297,297	$	316,764	$	( 46,765 )	$	( 23,019 )	$	544,605

Net income	—	—		—		19,075		—		—		19,075
Other comprehensive income	—	—		—		—		8,319		—		8,319
Stock-based compensation	—	—		419		—		—		—		419
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	72,065	1		( 692 )		—		—		—		( 691 )


Cash dividends and dividend equivalents ($ 0.21 per share)	—	—		—		( 6,670 )		—		—		( 6,670 )




Balance, March 31, 2025	31,631,431	$	329	$	297,024	$	329,169	$	( 38,446 )	$	( 23,019 )	$	565,057

Balance, December 31, 2023	31,695,828	$	327	$	295,877	$	269,051	$	( 57,163 )	$	( 18,596 )	$	489,496
Cumulative effect of change in accounting principle (ASU 2023-02)	—	—		—		116		—		—		116
Net income	—	—		—		15,258		—		—		15,258
Other comprehensive income	—	—		—		—		1,115		—		1,115
Stock-based compensation	—	—		509		—		—		—		509
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	96,341	1		( 332 )		—		—		—		( 331 )

Repurchase of common stock	( 179,281 )	—		—		—		—		( 3,410 )		( 3,410 )
Cash dividends and dividend equivalents ($ 0.19 per share)	—	—		—		( 6,072 )		—		—		( 6,072 )




Balance, March 31, 2024	31,612,888	$	328	$	296,054	$	278,353	$	( 56,048 )	$	( 22,006 )	$	496,681

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


	Three Months Ended March 31,
(dollars in thousands)	2025		2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	19,075	$	15,258
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	756		729
Provision for credit losses	576		527
Net amortization of debt securities	777		1,036
Deferred income tax expense	782		1,154
Stock-based compensation	419		509
Net accretion of discount and deferred loan fees on loans	( 1,887 )		( 1,854 )
Net realized loss on sales of securities	—		3,382
Net unrealized loss (gain) on equity securities	( 8 )		16
Net loss on disposals of bank premises and equipment	5		55
Net gain on sales of bank premises held for sale	( 59 )		—
Impairment losses on bank premises held for sale	—		580
Net gain on sales of foreclosed assets	( 27 )		( 113 )
Write-down of foreclosed assets	14		26
Amortization of intangibles	695		710
Decrease (increase) in fair value of mortgage servicing rights	308		( 80 )
Amortization of discount and issuance costs on subordinated notes and debentures	35		35
Amortization of discount on Federal Home Loan Bank advances	66		102

Amortization of premium on time deposits	—		( 30 )
Mortgage loans originated for sale	( 8,315 )		( 12,459 )
Proceeds from sale of mortgage loans	7,432		11,596
Net gain on sale of mortgage loans	( 252 )		( 298 )
Increase in cash surrender value of bank owned life insurance	( 164 )		( 164 )

Decrease in accrued interest receivable	2,035		1,417
Decrease (increase) in other assets	2,270		( 5,574 )
Increase in other liabilities	5,907		10,212
Net cash provided by operating activities	30,440		26,772

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)


	Three Months Ended March 31,
(dollars in thousands)	2025		2024

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of interest-bearing time deposits with banks	—		( 6 )
Proceeds from sales of debt securities	—		66,812
Proceeds from sales and redemptions of equity securities	—		20
Proceeds from paydowns, maturities, and calls of debt securities	36,553		29,563
Purchase of debt securities	( 24,367 )		( 4,757 )
Purchase of equity securities	—		( 117 )
Purchase of loans	( 9,782 )		( 4,448 )
Net decrease in loans	15,369		64,761

Proceeds from redemption of restricted stock	—		2,005

Purchases of bank premises and equipment	( 1,275 )		( 1,286 )

Proceeds from sales of bank premises held for sale	186		—
Proceeds from sales of foreclosed assets	159		865


Net cash provided by investing activities	16,843		153,412

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	66,336		( 40,833 )
Net decrease in repurchase agreements	( 26,271 )		( 10,578 )

Proceeds from long-term Federal Home Loan Bank advances	1,800		—
Repayment of long-term Federal Home Loan Bank advances	( 7,888 )		—
Taxes paid related to the vesting of restricted stock units	( 691 )		( 331 )
Repurchase of common stock	—		( 3,410 )
Cash dividends and dividend equivalents paid	( 6,670 )		( 6,072 )
Net cash provided by (used in) financing activities	26,616		( 61,224 )

NET INCREASE IN CASH AND CASH EQUIVALENTS	73,899		118,960
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	137,692		141,252
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	211,591	$	260,212

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	15,039	$	15,926
Net refund received for income taxes	$	—	$	( 749 )

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	$	239	$	203

Transfers of bank premises and equipment to bank premises held for sale	$	—	$	317

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 – ACCOUNTING POLICIES

Basis of Presentation

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025.

The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Recent Accounting Pronouncements

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard did not have a material impact on the Company’s consolidated results of operations or financial position.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 provides more decision-useful information about a public entity's expenses by requiring additional detail on expenses reported in income statements. Under the ASU, public entities will provide detailed disclosure in interim and annual periods of specified categories underlying certain expense captions. The ASU requires public entities to apply the amendments prospectively, with an option to use retrospective application. The amendments in this update are effective for years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 2 – SECURITIES

Debt Securities

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:


	March 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	109,688	$	—	$	( 6,825 )	$	—	$	102,863
U.S. government agency	53,611		46		( 1,877 )		—		51,780
Municipal	149,697		—		( 17,359 )		—		132,338
Mortgage-backed:
Agency residential	246,356		1,011		( 11,151 )		—		236,216
Agency commercial	126,448		6		( 10,051 )		—		116,403
Corporate	68,693		322		( 2,480 )		—		66,535
Total available-for-sale	$	754,493	$	1,385	$	( 49,743 )	$	—	$	706,135

	March 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,477	$	—	$	( 6,800 )	$	81,677	$	—
Municipal	35,199		47		( 271 )		34,975		—
Mortgage-backed:
Agency residential	83,308		—		( 4,417 )		78,891		—
Agency commercial	283,414		14		( 33,209 )		250,219		—
Total held-to-maturity	$	490,398	$	61	$	( 44,697 )	$	445,762	$	—

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


	December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	119,690	$	—	$	( 8,545 )	$	—	$	111,145
U.S. government agency	55,742		—		( 2,544 )		—		53,198
Municipal	150,163		—		( 19,484 )		—		130,679
Mortgage-backed:
Agency residential	241,342		253		( 14,227 )		—		227,368
Agency commercial	128,823		3		( 12,145 )		—		116,681
Corporate	61,732		156		( 2,910 )		—		58,978
Total available-for-sale	$	757,492	$	412	$	( 59,855 )	$	—	$	698,049

	December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,472	$	—	$	( 8,819 )	$	79,653	$	—
Municipal	35,862		48		( 371 )		35,539		—
Mortgage-backed:
Agency residential	85,643		—		( 5,796 )		79,847		—
Agency commercial	289,881		—		( 39,734 )		250,147		—
Total held-to-maturity	$	499,858	$	48	$	( 54,720 )	$	445,186	$	—

As of March 31, 2025 and December 31, 2024, the Bank had debt securities with a carrying value of $ 429.0 million and $ 468.8 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of March 31, 2025, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in 1 year or less	$	49,390	$	48,619	$	6,431	$	6,431
Due after 1 year through 5 years	179,558		168,306		52,779		50,793
Due after 5 years through 10 years	128,903		115,347		62,214		57,281
Due after 10 years	23,838		21,244		2,252		2,147

Mortgage-backed:
Agency residential	246,356		236,216		83,308		78,891
Agency commercial	126,448		116,403		283,414		250,219
Total	$	754,493	$	706,135	$	490,398	$	445,762

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of March 31, 2025 and December 31, 2024, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	March 31, 2025
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	( 6,825 )	$	102,863	$	( 6,825 )	$	102,863
U.S. government agency	( 26 )		2,969		( 1,851 )		44,059		( 1,877 )		47,028
Municipal	( 5 )		2,162		( 17,354 )		129,705		( 17,359 )		131,867
Mortgage-backed:
Agency residential	( 935 )		40,523		( 10,216 )		123,996		( 11,151 )		164,519
Agency commercial	( 54 )		3,087		( 9,997 )		111,959		( 10,051 )		115,046
Corporate	( 33 )		3,967		( 2,447 )		39,526		( 2,480 )		43,493
Total available-for-sale	$	( 1,053 )	$	52,708	$	( 48,690 )	$	552,108	$	( 49,743 )	$	604,816


	December 31, 2024
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	( 8,545 )	$	111,145	$	( 8,545 )	$	111,145
U.S. government agency	( 141 )		7,594		( 2,403 )		45,604		( 2,544 )		53,198
Municipal	( 8 )		2,634		( 19,476 )		127,776		( 19,484 )		130,410
Mortgage-backed:
Agency residential	( 2,041 )		81,055		( 12,186 )		129,178		( 14,227 )		210,233
Agency commercial	( 125 )		3,327		( 12,020 )		112,118		( 12,145 )		115,445
Corporate	( 4 )		1,996		( 2,906 )		43,064		( 2,910 )		45,060
Total available-for-sale	$	( 2,319 )	$	96,606	$	( 57,536 )	$	568,885	$	( 59,855 )	$	665,491

As of March 31, 2025, there were 600 debt securities in an unrealized loss position for a period of twelve months or more, and 63 debt securities in an unrealized loss position for a period of less than twelve months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Municipal securities include general obligation bonds which have a very low historical default rate due to issuers generally having taxing authority to service the debt and represent approximately 72 % of the total fair value of our municipal securities portfolio as of March 31, 2025. The remainder of the municipal securities are also of high credit quality with ratings of Aa3/AA- or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

As of March 31, 2025, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.

Accrued interest on debt securities is excluded from the estimate of credit losses and totaled $ 5.0 million and $ 5.1 million as of March 31, 2025 and December 31, 2024, respectively.

Sales of debt securities were as follows during the three months ended March 31:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Proceeds from sales		$	—	$	66,812
Gross realized gains		—		—
Gross realized losses		—		( 3,382 )

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Equity Securities

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses were as follows:


	March 31, 2025
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,998
Cumulative net unrealized gains (losses)	199		( 369 )
Carrying value	$	3,323	$	2,629


	December 31, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,998
Cumulative net unrealized gains (losses)	191		( 369 )
Carrying value	$	3,315	$	2,629

As of March 31, 2025 and December 31, 2024, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $ 0.2 million and downward adjustments based on observable price changes of an identical investment of $ 0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

Unrealized gains (losses) on equity securities were as follows during the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Readily determinable fair value		$	8	$	( 16 )
No readily determinable fair value		—		—
Unrealized gains (losses) on equity securities		$	8	$	( 16 )

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 3 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Major categories of loans are summarized as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024

Commercial and industrial	$	441,261	$	428,389
Commercial real estate - owner occupied	321,990		322,316
Commercial real estate - non-owner occupied	891,022		899,565
Construction and land development	376,046		374,657
Multi-family	424,096		431,524
One-to-four family residential	455,376		463,968
Agricultural and farmland	292,240		293,375
Municipal, consumer, and other	259,747		252,352
Loans, before allowance for credit losses	3,461,778		3,466,146
Allowance for credit losses	( 42,111 )		( 42,044 )
Loans, net of allowance for credit losses	$	3,419,667	$	3,424,102

Allowance for Credit Losses

Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At March 31, 2025, the economic forecast used by management anticipates a mild economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate remaining stable and gross domestic product ("GDP") growth slowing slightly and then increasing. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables detail activity in the allowance for credit losses:


	Three Months Ended March 31, 2025
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	5,357	$	3,107	$	11,707	$	4,302	$	4,331	$	3,908	$	1,170	$	8,162	$	42,044

Provision for credit losses	1,055		192		( 514 )		324		( 213 )		( 112 )		108		( 344 )		496
Charge-offs	( 385 )		( 1 )		—		( 6 )		—		( 85 )		—		( 188 )		( 665 )
Recoveries	59		2		—		1		—		44		38		92		236
Ending balance	$	6,086	$	3,300	$	11,193	$	4,621	$	4,118	$	3,755	$	1,316	$	7,722	$	42,111

	Three Months Ended March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

Provision for credit losses	239		( 117 )		2,102		( 454 )		8		( 421 )		32		( 829 )		560
Charge-offs	( 15 )		—		—		—		—		( 21 )		—		( 191 )		( 227 )
Recoveries	26		2		242		1		—		84		7		72		434
Ending balance	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2025 and 2024.


	Gross Charge-Offs for the Three Months Ended March 31, 2025
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2025		2024		2023		2022		2021		Prior

Commercial and industrial	$	—	$	—	$	319	$	—	$	46	$	—	$	20	$	—	$	385
Commercial real estate - owner occupied	—		—		—		—		1		—		—		—		1
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		2		—		4		—		—		6
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		1		—		81		3		—		85
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	67		60		1		—		—		—		60		—		188
Total	$	67	$	60	$	320	$	3	$	47	$	85	$	83	$	—	$	665

	Gross Charge-Offs for the Three Months Ended March 31, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	3	$	—	$	—	$	—	$	11	$	1	$	—	$	15
Commercial real estate - owner occupied	—		—		—		—		—		—		—		—		—
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		3		—		—		6		12		—		21
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	44		56		6		—		—		—		85		—		191
Total	$	44	$	59	$	9	$	—	$	—	$	17	$	98	$	—	$	227

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present loans and the related allowance for credit losses by category:


	March 31, 2025
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	440,377	$	321,683	$	878,296	$	375,802	$	424,006	$	451,824	$	292,225	$	245,578	$	3,429,791
Individually evaluated for impairment	884		307		12,726		244		90		3,552		15		14,169		31,987
Total	$	441,261	$	321,990	$	891,022	$	376,046	$	424,096	$	455,376	$	292,240	$	259,747	$	3,461,778

Allowance for credit losses:
Collectively evaluated for impairment	$	5,939	$	3,300	$	10,803	$	4,571	$	4,028	$	3,659	$	1,316	$	5,761	$	39,377
Individually evaluated for impairment	147		—		390		50		90		96		—		1,961		2,734
Total	$	6,086	$	3,300	$	11,193	$	4,621	$	4,118	$	3,755	$	1,316	$	7,722	$	42,111

	December 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	427,737	$	322,159	$	884,832	$	374,408	$	431,432	$	459,790	$	293,240	$	241,765	$	3,435,363
Individually evaluated for impairment	652		157		14,733		249		92		4,178		135		10,587		30,783
Total	$	428,389	$	322,316	$	899,565	$	374,657	$	431,524	$	463,968	$	293,375	$	252,352	$	3,466,146

Allowance for credit losses:
Collectively evaluated for impairment	$	5,344	$	3,107	$	11,201	$	4,269	$	4,239	$	3,747	$	1,170	$	5,901	$	38,978
Individually evaluated for impairment	13		—		506		33		92		161		—		2,261		3,066
Total	$	5,357	$	3,107	$	11,707	$	4,302	$	4,331	$	3,908	$	1,170	$	8,162	$	42,044

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:


	March 31, 2025
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	775	$	109	$	884	$	147
Commercial real estate - owner occupied	307		—		—		307		—
Commercial real estate - non-owner occupied	12,726		—		—		12,726		390
Construction and land development	244		—		—		244		50
Multi-family	90		—		—		90		90
One-to-four family residential	3,552		—		—		3,552		96
Agricultural and farmland	—		—		15		15		—
Municipal, consumer, and other	14,159		—		10		14,169		1,961
Total	$	31,078	$	775	$	134	$	31,987	$	2,734

	December 31, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	627	$	25	$	652	$	13
Commercial real estate - owner occupied	157		—		—		157		—
Commercial real estate - non-owner occupied	14,733		—		—		14,733		506
Construction and land development	249		—		—		249		33
Multi-family	92		—		—		92		92
One-to-four family residential	4,178		—		—		4,178		161
Agricultural and farmland	—		—		135		135		—
Municipal, consumer, and other	10,569		5		13		10,587		2,261
Total	$	29,978	$	632	$	173	$	30,783	$	3,066

Accrued interest on loans is excluded from the estimate of credit losses and totaled $ 17.5 million and $ 19.6 million as of March 31, 2025 and December 31, 2024, respectively.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Past Due and Nonaccrual Status

Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

The following tables present loans by category based on current payment and accrual status:


	March 31, 2025
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	438,705	$	1,672	$	—	$	884	$	441,261
Commercial real estate - owner occupied	320,877		806		—		307		321,990
Commercial real estate - non-owner occupied	890,989		33		—		—		891,022
Construction and land development	375,802		—		—		244		376,046
Multi-family	417,452		6,554		—		90		424,096
One-to-four family residential	450,754		1,070		—		3,552		455,376
Agricultural and farmland	292,075		150		—		15		292,240
Municipal, consumer, and other	259,650		83		4		10		259,747
Total	$	3,446,304	$	10,368	$	4	$	5,102	$	3,461,778


	December 31, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	425,859	$	1,878	$	—	$	652	$	428,389
Commercial real estate - owner occupied	321,805		354		—		157		322,316
Commercial real estate - non-owner occupied	897,445		299		—		1,821		899,565
Construction and land development	373,933		475		—		249		374,657
Multi-family	431,432		—		—		92		431,524
One-to-four family residential	459,069		721		—		4,178		463,968
Agricultural and farmland	293,231		9		—		135		293,375
Municipal, consumer, and other	251,798		182		4		368		252,352
Total	$	3,454,572	$	3,918	$	4	$	7,652	$	3,466,146

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present nonaccrual loans with and without a related allowance for credit losses:


	March 31, 2025
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	445	$	439	$	884
Commercial real estate - owner occupied	—		307		307
Commercial real estate - non-owner occupied	—		—		—
Construction and land development	214		30		244
Multi-family	90		—		90
One-to-four family residential	582		2,970		3,552
Agricultural and farmland	—		15		15
Municipal, consumer, and other	—		10		10
Total	$	1,331	$	3,771	$	5,102

	December 31, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	185	$	467	$	652
Commercial real estate - owner occupied	—		157		157
Commercial real estate - non-owner occupied	—		1,821		1,821
Construction and land development	216		33		249
Multi-family	92		—		92
One-to-four family residential	654		3,524		4,178
Agricultural and farmland	—		135		135
Municipal, consumer, and other	—		368		368
Total	$	1,147	$	6,505	$	7,652

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Credit Quality Indicators

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all loans that are part of relationships with over $ 750 thousand in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into the following major categories:

Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a special mention, substandard, or doubtful classification.

Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. There were no loans classified as doubtful as of March 31, 2025 and December 31, 2024.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present loans by category based on their assigned risk ratings determined by management:


	March 31, 2025
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	413,933	$	15,961	$	4,574	$	6,793	$	441,261
Commercial real estate - owner occupied	294,305		16,315		3,988		7,382		321,990
Commercial real estate - non-owner occupied	842,602		15,907		—		32,513		891,022
Construction and land development	352,844		1,587		20,844		771		376,046
Multi-family	406,806		10,663		6,537		90		424,096
One-to-four family residential	439,022		8,259		798		7,297		455,376
Agricultural and farmland	262,265		17,219		8,093		4,663		292,240
Municipal, consumer, and other	244,622		910		—		14,215		259,747
Total	$	3,256,399	$	86,821	$	44,834	$	73,724	$	3,461,778


	December 31, 2024
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	404,779	$	16,429	$	1,957	$	5,224	$	428,389
Commercial real estate - owner occupied	297,150		14,969		2,713		7,484		322,316
Commercial real estate - non-owner occupied	843,487		21,594		—		34,484		899,565
Construction and land development	351,657		1,376		20,847		777		374,657
Multi-family	411,842		3,855		15,735		92		431,524
One-to-four family residential	448,869		6,641		710		7,748		463,968
Agricultural and farmland	269,926		18,154		521		4,774		293,375
Municipal, consumer, and other	236,686		929		4,107		10,630		252,352
Total	$	3,264,396	$	83,947	$	46,590	$	71,213	$	3,466,146

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Risk ratings of loans, further sorted by origination year, are as follows as of March 31, 2025:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2025		2024		2023		2022		2021		Prior
Commercial and industrial
Pass	$	15,183	$	61,571	$	55,516	$	44,509	$	10,641	$	28,677	$	195,989	$	1,847	$	413,933
Pass-Watch	—		576		1,614		510		1,053		1,704		9,618		886		15,961
Special Mention	—		—		—		—		—		—		4,574		—		4,574
Substandard	—		1		1,902		1,233		821		—		2,209		627		6,793
Total	$	15,183	$	62,148	$	59,032	$	46,252	$	12,515	$	30,381	$	212,390	$	3,360	$	441,261

Commercial real estate - owner occupied
Pass	$	13,677	$	57,045	$	24,637	$	53,818	$	46,820	$	78,189	$	19,153	$	966	$	294,305
Pass-Watch	1,640		3,941		260		3,377		2,353		1,444		3,300		—		16,315
Special Mention	—		1,847		—		—		272		369		1,500		—		3,988
Substandard	—		815		680		672		3,818		1,332		—		65		7,382
Total	$	15,317	$	63,648	$	25,577	$	57,867	$	53,263	$	81,334	$	23,953	$	1,031	$	321,990

Commercial real estate - non-owner occupied
Pass	$	39,275	$	85,190	$	104,130	$	240,197	$	211,177	$	137,266	$	23,773	$	1,594	$	842,602
Pass-Watch	—		2,550		412		1,733		3,977		7,235		—		—		15,907
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	24,786		5,489		209		—		—		2,029		—		—		32,513
Total	$	64,061	$	93,229	$	104,751	$	241,930	$	215,154	$	146,530	$	23,773	$	1,594	$	891,022

Construction and land development
Pass	$	35,049	$	173,174	$	45,656	$	65,104	$	21,987	$	1,212	$	10,427	$	235	$	352,844
Pass-Watch	19		249		—		—		—		17		699		603		1,587
Special Mention	12,093		—		—		8,751		—		—		—		—		20,844
Substandard	—		475		—		214		—		82		—		—		771
Total	$	47,161	$	173,898	$	45,656	$	74,069	$	21,987	$	1,311	$	11,126	$	838	$	376,046

Multi-family
Pass	$	12,572	$	45,184	$	89,288	$	81,284	$	87,835	$	88,007	$	2,197	$	439	$	406,806
Pass-Watch	110		2,667		16		—		—		7,866		—		4		10,663
Special Mention	6,537		—		—		—		—		—		—		—		6,537
Substandard	—		90		—		—		—		—		—		—		90
Total	$	19,219	$	47,941	$	89,304	$	81,284	$	87,835	$	95,873	$	2,197	$	443	$	424,096

One-to-four family residential
Pass	$	17,329	$	34,019	$	84,902	$	79,177	$	69,500	$	93,164	$	54,636	$	6,295	$	439,022
Pass-Watch	89		2,869		1,196		726		302		2,634		137		306		8,259
Special Mention	—		—		—		—		586		212		—		—		798
Substandard	328		234		335		527		455		5,017		16		385		7,297
Total	$	17,746	$	37,122	$	86,433	$	80,430	$	70,843	$	101,027	$	54,789	$	6,986	$	455,376

Agricultural and farmland
Pass	$	20,374	$	33,833	$	33,398	$	29,748	$	26,891	$	29,898	$	87,437	$	686	$	262,265
Pass-Watch	1,200		466		2,006		273		852		1,326		10,995		101		17,219
Special Mention	2,528		—		670		1,333		944		—		2,618		—		8,093
Substandard	—		330		51		486		7		3,138		386		265		4,663
Total	$	24,102	$	34,629	$	36,125	$	31,840	$	28,694	$	34,362	$	101,436	$	1,052	$	292,240

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2025		2024		2023		2022		2021		Prior
Municipal, consumer, and other
Pass	$	26,085	$	61,718	$	34,258	$	18,437	$	23,004	$	48,456	$	32,663	$	1	$	244,622
Pass-Watch	—		100		44		4		10		750		2		—		910
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	15		8		4		29		—		14,158		1		—		14,215
Total	$	26,100	$	61,826	$	34,306	$	18,470	$	23,014	$	63,364	$	32,666	$	1	$	259,747

Total by risk rating
Pass	$	179,544	$	551,734	$	471,785	$	612,274	$	497,855	$	504,869	$	426,275	$	12,063	$	3,256,399
Pass-Watch	3,058		13,418		5,548		6,623		8,547		22,976		24,751		1,900		86,821
Special Mention	21,158		1,847		670		10,084		1,802		581		8,692		—		44,834
Substandard	25,129		7,442		3,181		3,161		5,101		25,756		2,612		1,342		73,724
Total	$	228,889	$	574,441	$	481,184	$	632,142	$	513,305	$	554,182	$	462,330	$	15,305	$	3,461,778

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2024:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	46,635	$	43,007	$	44,701	$	11,617	$	17,913	$	41,397	$	197,516	$	1,993	$	404,779
Pass-Watch	475		1,310		186		1,121		—		1,775		10,613		949		16,429
Special Mention	—		281		272		173		—		—		1,231		—		1,957
Substandard	—		1,913		1,016		721		—		—		939		635		5,224
Total	$	47,110	$	46,511	$	46,175	$	13,632	$	17,913	$	43,172	$	210,299	$	3,577	$	428,389

Commercial real estate - owner occupied
Pass	$	63,546	$	23,607	$	56,509	$	48,867	$	39,679	$	44,108	$	19,766	$	1,068	$	297,150
Pass-Watch	6,478		395		3,698		2,111		542		1,374		371		—		14,969
Special Mention	1,877		—		—		150		—		—		686		—		2,713
Substandard	819		700		506		3,707		1,241		511		—		—		7,484
Total	$	72,720	$	24,702	$	60,713	$	54,835	$	41,462	$	45,993	$	20,823	$	1,068	$	322,316

Commercial real estate - non-owner occupied
Pass	$	92,125	$	108,688	$	245,168	$	222,479	$	84,054	$	65,935	$	23,425	$	1,613	$	843,487
Pass-Watch	3,173		421		6,656		4,031		2,442		4,871		—		—		21,594
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	23,245		9,191		—		—		—		2,048		—		—		34,484
Total	$	118,543	$	118,300	$	251,824	$	226,510	$	86,496	$	72,854	$	23,425	$	1,613	$	899,565

Construction and land development
Pass	$	181,274	$	73,773	$	65,045	$	21,542	$	590	$	693	$	8,228	$	512	$	351,657
Pass-Watch	—		—		—		—		—		18		697		661		1,376
Special Mention	—		—		8,750		12,097		—		—		—		—		20,847
Substandard	475		—		216		—		—		86		—		—		777
Total	$	181,749	$	73,773	$	74,011	$	33,639	$	590	$	797	$	8,925	$	1,173	$	374,657

Multi-family
Pass	$	46,969	$	80,450	$	88,823	$	101,284	$	50,652	$	40,839	$	2,375	$	450	$	411,842
Pass-Watch	2,791		—		567		—		—		492		—		5		3,855
Special Mention	6,936		—		—		—		8,799		—		—		—		15,735
Substandard	92		—		—		—		—		—		—		—		92
Total	$	56,788	$	80,450	$	89,390	$	101,284	$	59,451	$	41,331	$	2,375	$	455	$	431,524

One-to-four family residential
Pass	$	44,914	$	87,184	$	79,834	$	71,466	$	57,258	$	43,455	$	59,446	$	5,312	$	448,869
Pass-Watch	1,126		1,271		936		242		405		2,252		134		275		6,641
Special Mention	—		—		—		592		118		—		—		—		710
Substandard	281		522		861		473		382		4,824		16		389		7,748
Total	$	46,321	$	88,977	$	81,631	$	72,773	$	58,163	$	50,531	$	59,596	$	5,976	$	463,968

Agricultural and farmland
Pass	$	42,272	$	35,593	$	32,146	$	28,714	$	27,865	$	7,656	$	94,977	$	703	$	269,926
Pass-Watch	100		2,671		1,424		1,403		508		861		10,633		554		18,154
Special Mention	134		87		—		—		—		—		300		—		521
Substandard	332		51		494		9		3,183		—		319		386		4,774
Total	$	42,838	$	38,402	$	34,064	$	30,126	$	31,556	$	8,517	$	106,229	$	1,643	$	293,375

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Municipal, consumer, and other
Pass	$	77,779	$	37,678	$	14,475	$	23,204	$	12,479	$	37,460	$	33,611	$	—	$	236,686
Pass-Watch	103		50		6		12		—		757		1		—		929
Special Mention	—		—		—		—		—		4,107		—		—		4,107
Substandard	21		5		33		—		—		10,570		1		—		10,630
Total	$	77,903	$	37,733	$	14,514	$	23,216	$	12,479	$	52,894	$	33,613	$	—	$	252,352

Total by risk rating
Pass	$	595,514	$	489,980	$	626,701	$	529,173	$	290,490	$	281,543	$	439,344	$	11,651	$	3,264,396
Pass-Watch	14,246		6,118		13,473		8,920		3,897		12,400		22,449		2,444		83,947
Special Mention	8,947		368		9,022		13,012		8,917		4,107		2,217		—		46,590
Substandard	25,265		12,382		3,126		4,910		4,806		18,039		1,275		1,410		71,213
Total	$	643,972	$	508,848	$	652,322	$	556,015	$	308,110	$	316,089	$	465,285	$	15,505	$	3,466,146

Modifications

There were no loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, modified loans totaled $ 0.5 million and $ 0.5 million, respectively, and were current and performing in accordance with the modified terms.

Pledged Loans

As of March 31, 2025 and December 31, 2024, the Company pledged loans totaling $ 1.89 billion and $ 1.91 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.

NOTE 4 – LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $ 1.52 billion and $ 1.55 billion as of March 31, 2025 and December 31, 2024, respectively. Activity in mortgage servicing rights was as follows:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Beginning balance		$	18,827	$	19,001

Capitalized servicing rights		95		130
Fair value adjustments attributable to payments and principal reductions		( 453 )		( 429 )
Fair value adjustments attributable to changes in valuation inputs and assumptions		50		379
Ending balance		$	18,519	$	19,081

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 5 – FORECLOSED ASSETS

Foreclosed assets activity was as follows:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Beginning balance		$	367	$	852

Transfers from loans		239		203

Proceeds from sales		( 159 )		( 865 )

Net gain on sales		27		113
Direct write-downs		( 14 )		( 26 )
Ending balance		$	460	$	277

Gains (losses) on foreclosed assets included the following:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Direct write-downs		$	( 14 )	$	( 26 )
Net gain on sales		27		113
Gains on foreclosed assets		$	13	$	87

As of March 31, 2025 and December 31, 2024, the carrying value of foreclosed one-to-four family residential real estate properties held was $ 0.4 million and $ 0.3 million, respectively. As of March 31, 2025, there were 11 one-to-four family residential real estate loans in the process of foreclosure totaling $ 1.1 million. As of December 31, 2024, there were 19 one-to-four family residential real estate loans in the process of foreclosure totaling $ 1.8 million.

NOTE 6 – DEPOSITS

The Company’s deposits are summarized below:


(dollars in thousands)	March 31, 2025		December 31, 2024

Noninterest-bearing deposits	$	1,065,874	$	1,046,405
Interest-bearing deposits:
Interest-bearing demand	1,143,677		1,099,061
Money market	812,146		820,825
Savings	575,558		566,533
Time	787,335		785,430

Total interest-bearing deposits	3,318,716		3,271,849
Total deposits	$	4,384,590	$	4,318,254

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $ 264.4 million and $ 229.4 million as of March 31, 2025 and December 31, 2024, respectively. There were no brokered deposits as of March 31, 2025 and December 31, 2024.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $ 209.2 million and $ 202.2 million as of March 31, 2025 and December 31, 2024, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $ 460.8 million and $ 455.2 million as of March 31, 2025 and December 31, 2024, respectively.

The components of interest expense on deposits were as follows:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Interest-bearing demand		$	1,453	$	1,311
Money market		4,397		4,797
Savings		370		443
Time		6,719		5,925
Brokered		—		1,117
Total interest expense on deposits		$	12,939	$	13,593

NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.

Interest Rate Swaps Designated as Cash Flow Hedges

For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreement designated as a cash flow hedge was as follows:


	March 31, 2025				December 31, 2024
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	7,000	$	3	$	7,000	$	38

The interest rate swap agreement matured in April 2025. The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income was as follows:


Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Designated as cash flow hedges:
Junior subordinated debentures interest expense		$	36	$	132

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Interest Rate Swaps Not Designated as Hedging Instruments

The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The interest rate swap agreements not designated as hedging instruments were as follows:


	March 31, 2025				December 31, 2024
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	78,195		4,288		79,416		5,515
Total fair value recorded in other assets	$	78,195	$	4,288	$	79,416	$	5,515

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	78,195	$	( 4,288 )	$	79,416	$	( 5,515 )
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	78,195	$	( 4,288 )	$	79,416	$	( 5,515 )

As of March 31, 2025, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035.

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income was as follows:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Not designated as hedging instruments:
Gross gains		$	1,649	$	2,038
Gross losses		( 1,649 )		( 2,038 )
Net gains (losses)		$	—	$	—

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Risk Participation Agreements

We have entered into a risk participation agreement to share credit exposure with a counterparty in an interest rate swap agreement associated with a loan participation. Under the risk participation agreement, the Company sold a portion of its credit exposure, receiving an up-front fee, and will be required to make a payment to the counterparty if the loan customer defaults on its obligations. The risk participation agreement matures in 2035 and is summarized as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024

Risk participation agreements sold
Number of risk participation agreements	1		1
Notional amount	$	5,268	$	5,268
Fair value	( 10 )		( 10 )

NOTE 8 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):


	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total

Three Months Ended March 31, 2025
Balance, December 31, 2024	$	( 39,408 )	$	( 7,119 )	$	( 238 )	$	( 46,765 )
Other comprehensive income before reclassifications	11,085		—		1		11,086
Reclassifications	—		504		( 36 )		468
Other comprehensive income (loss), before tax	11,085		504		( 35 )		11,554
Income tax expense (benefit)	3,104		141		( 10 )		3,235
Other comprehensive income (loss), after tax	7,981		363		( 25 )		8,319
Balance, March 31, 2025	$	( 31,427 )	$	( 6,756 )	$	( 263 )	$	( 38,446 )

Three Months Ended March 31, 2024
Balance, December 31, 2023	$	( 48,579 )	$	( 8,549 )	$	( 35 )	$	( 57,163 )

Other comprehensive income (loss) before reclassifications	( 2,255 )		—		64		( 2,191 )
Reclassifications	3,382		501		( 132 )		3,751
Other comprehensive income (loss), before tax	1,127		501		( 68 )		1,560
Income tax expense (benefit)	322		143		( 20 )		445
Other comprehensive income (loss), after tax	805		358		( 48 )		1,115
Balance, March 31, 2024	$	( 47,774 )	$	( 8,191 )	$	( 83 )	$	( 56,048 )

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 7 for additional information.

NOTE 9 – EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Numerator:
Net income		$	19,075	$	15,258



Denominator:
Weighted average common shares outstanding		31,584,989		31,662,954
Dilutive effect of outstanding restricted stock units		126,682		140,233
Weighted average common shares outstanding, including all dilutive potential shares		31,711,671		31,803,187

Earnings per share - basic		$	0.60	$	0.48
Earnings per share - diluted		$	0.60	$	0.48

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 10 – STOCK-BASED COMPENSATION PLANS

The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.

The following is a summary of stock-based compensation expense (benefit):


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Restricted stock units		$	273	$	273
Performance restricted stock units		146		236
Total awards classified as equity		419		509
Stock appreciation rights		( 9 )		( 129 )
Total stock-based compensation expense		$	410	$	380

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Restricted Stock Units

A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2025 and 2024, the total grant date fair value of the restricted stock units granted was $ 1.1 million and $ 1.0 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the three months ended March 31, 2025 and 2024 was $ 1.4 million and $ 1.4 million, respectively.

The following is a summary of restricted stock unit activity:











	Three Months Ended March 31,
	2025			2024
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	108,603	$	19.71	128,159	$	19.56
Granted	43,397	25.00		51,246	19.06
Vested	( 56,922 )	19.59		( 70,540 )	18.96
Forfeited	( 131 )	19.06		—	—
Ending balance	94,947	$	22.20	108,865	$	19.71

As of March 31, 2025, unrecognized compensation cost related to the non-vested restricted stock units was $ 1.7 million. This cost is expected to be recognized over the weighted average remaining service period of 1.8 years.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Performance Restricted Stock Units

A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0 % to 150 % of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2025 and 2024, the total fair value of the performance restricted stock units granted was $ 0.4 million and $ 0.4 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date. The total intrinsic value of performance restricted stock units that vested during the three months ended March 31, 2025 and 2024 was $ 1.1 million and $ 0.8 million, respectively.

The following is a summary of performance restricted stock unit activity:












	Three Months Ended March 31,
	2025			2024
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	70,333	$	19.59	79,097	$	18.25
Granted	16,662	25.00		19,933	19.06
Adjustment for performance condition	11,864	18.66		14,349	15.53
Vested	( 42,783 )	18.66		( 43,046 )	15.53
Forfeited	( 2,451 )	16.27		—	—
Ending balance	53,625	$	22.07	70,333	$	19.59

As of March 31, 2025, unrecognized compensation cost related to non-vested performance restricted stock units was $ 0.6 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.3 years.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Stock Appreciation Rights

A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award.

The following is a summary of stock appreciation rights activity:












	Three Months Ended March 31,
	2025			2024
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	( 6,120 )	16.32		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	67,320	$	16.32	73,440	$	16.32

As of March 31, 2025, all stock appreciation rights were exercisable and had a weighted average remaining term of 4.4 years. There was no unrecognized compensation cost for stock appreciation rights as of March 31, 2025.

As of March 31, 2025 and December 31, 2024, the liability recorded for outstanding stock appreciation rights was $ 0.5 million and $ 0.5 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price.


	March 31, 2025		December 31, 2024
Risk-free interest rate	3.95	%	4.37	%
Expected volatility	29.29	%	30.95	%
Expected life (in years)	4.4		4.7
Expected dividend yield	3.75	%	3.47	%

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 11 – REGULATORY CAPITAL

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. The capital conservation buffer is 2.5 % of risk-weighted assets.

As of March 31, 2025 and December 31, 2024, 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 were as follows:


	March 31, 2025
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	666,223	16.85	%	$	316,382	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	584,169		14.77		237,287		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	532,919		13.48		177,965		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	584,169		11.64		200,694		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	650,411	16.46	%	$	316,147	8.00	%	$	395,183	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	607,930		15.38		237,110		6.00		316,147		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	607,930		15.38		177,832		4.50		256,869		6.50
Tier 1 Capital (to Average Assets)	607,930		12.12		200,557		4.00		250,696		5.00

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


	December 31, 2024
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	652,563	16.51	%	$	316,145	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	573,203		14.50		237,109		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	521,968		13.21		177,831		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	573,203		11.51		199,167		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	635,878	16.11	%	$	315,825	8.00	%	$	394,781	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	596,071		15.10		236,869		6.00		315,825		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	596,071		15.10		177,651		4.50		256,608		6.50
Tier 1 Capital (to Average Assets)	596,071		11.98		199,030		4.00		248,787		5.00

NOTE 12 – SEGMENT INFORMATION

The Company’s operations consist of one reportable segment. The President and Chief Executive Officer is the designated chief operating decision maker. The chief operating decision maker uses consolidated financial information for purposes of allocating resources and assessing performance. The chief operating decision maker uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used to assess performance and in establishing compensation. Interest income from loans and investments as well as noninterest income from deposit customer activity, wealth management activities, and mortgage servicing generate the significant revenues. Interest expense, provisions for credit losses, and noninterest expenses such as compensation, occupancy, and data processing costs constitute the significant expenses. Significant revenues and expenses regularly provided to the chief operating decision maker are detailed in the consolidated statements of income.

NOTE 13 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

Recurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Derivative financial instruments are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 by level within the fair value hierarchy:


	March 31, 2025
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	—	$	102,863	$	—	$	102,863
U.S. government agency	—		51,780		—		51,780
Municipal	—		132,338		—		132,338
Mortgage-backed:
Agency residential	—		236,216		—		236,216
Agency commercial	—		116,403		—		116,403
Corporate	—		66,535		—		66,535
Equity securities with readily determinable fair values	3,323		—		—		3,323
Mortgage servicing rights	—		—		18,519		18,519
Derivative financial assets	—		4,291		—		4,291
Derivative financial liabilities	—		4,298		—		4,298


	December 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	—	$	111,145	$	—	$	111,145
U.S. government agency	—		53,198		—		53,198
Municipal	—		130,679		—		130,679
Mortgage-backed:
Agency residential	—		227,368		—		227,368
Agency commercial	—		116,681		—		116,681
Corporate	—		58,978		—		58,978
Equity securities with readily determinable fair values	3,315		—		—		3,315
Mortgage servicing rights	—		—		18,827		18,827
Derivative financial assets	—		5,553		—		5,553
Derivative financial liabilities	—		5,525		—		5,525

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

March 31, 2025

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

18,519

Discounted cash flows

Constant pre-payment rates (CPR)

0.6 % to 94.3 % ( 7.9 %)

Discount rate

9.0 % to 11.0 % ( 9.6 %)

December 31, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

18,827

Discounted cash flows

Constant pre-payment rates (CPR)

0.8 % to 94.3 % ( 7.6 %)

Discount rate

9.0 % to 96.4 % ( 10.4 %)

Nonrecurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis.

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.

Collateral-Dependent Loans

Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables summarize assets measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 by level within the fair value hierarchy:


	March 31, 2025
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	2,721	$	—	$	2,721
Collateral-dependent loans	—		—		29,253		29,253
Bank premises held for sale	—		—		190		190
Foreclosed assets	—		—		460		460


	December 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	1,586	$	—	$	1,586
Collateral-dependent loans	—		—		27,717		27,717
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		367		367

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

March 31, 2025

Fair Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

29,253

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

190

Appraisal

Appraisal adjustments

7 % ( 7 %)

Foreclosed assets

460

Appraisal

Appraisal adjustments

7 % ( 7 %)

December 31, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range

(Weighted Average)

Collateral-dependent loans

27,717

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

317

Appraisal

Appraisal adjustments

7 % ( 7 %)

Foreclosed assets

367

Appraisal

Appraisal adjustments

7 % ( 7 %)

Other Fair Value Methods

The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time and Brokered Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

FHLB Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.

Subordinated Notes

The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s other financial instruments:


(dollars in thousands)	Fair Value Hierarchy Level	March 31, 2025				December 31, 2024
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	211,591	$	211,591	$	137,692	$	137,692
Debt securities held-to-maturity	Level 2	490,398		445,762		499,858		445,186
Restricted stock	Level 3	5,086		5,086		5,086		5,086
Loans, net	Level 3	3,419,667		3,358,974		3,424,102		3,418,318
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	22,735		22,735		24,770		24,770

Financial liabilities:
Time deposits	Level 3	787,335		781,985		785,430		779,997

Securities sold under agreements to repurchase	Level 2	2,698		2,698		28,969		28,969
FHLB advances	Level 3	7,209		6,303		13,231		13,159
Subordinated notes	Level 3	39,573		39,095		39,553		38,316
Junior subordinated debentures	Level 3	52,864		47,966		52,849		47,942
Accrued interest payable	Level 2	4,487		4,487		5,096		5,096

The Company estimated the fair value of lending related commitments as described in Note 14 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods, and termination clauses provided in the agreements.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Financial Instruments

The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Such commitments and conditional obligations were as follows:


	Contractual Amount
(dollars in thousands)	March 31, 2025		December 31, 2024

Commitments to extend credit	$	841,562	$	845,413
Standby letters of credit	31,336		18,329

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.

Allowance for Credit Losses on Unfunded Lending-related Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $ 3.2 million and $ 3.1 million as of March 31, 2025 and December 31, 2024, respectively.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Legal Contingencies

In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements.

Heartland Bank and Trust Company v. Meadows Mennonite Retirement Community Association, Inc.

This lawsuit arises out of a suit filed in the Circuit Court of Woodford County, Illinois, (the "Trial Court") by the Bank for breach of a note and commercial security agreement. The defendant, Meadows Mennonite Retirement Community Association, Inc. ("Meadows"), a beneficiary of a trust for which Bank was trustee, filed a counterclaim for rescission of the note seeking compensatory and punitive damages, including attorneys’ fees. The Trial Court entered summary judgement in favor of the Bank on its claim and against Meadows on its counterclaim. In September 2024, the Appellate Court of Illinois Fourth District (the "Appellate Court") entered an order directing that summary judgment should be entered in favor of Meadows and against the Bank, rescinding the note and commercial security agreement and remanded the case to the Trial Court to determine Meadows' compensatory and punitive damages, including reasonable attorneys’ fees.

In April 2025, the Bank reached an agreement in principle to settle this case in which the Bank and Meadows would mutually release each other from further liability and claims, with no payments made by either the Bank or Meadows. The settlement in principle does not include an admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the case. The Bank has agreed to the settlement in principle to avoid the cost, risks, and distraction of continued litigation. The Company believes the settlement in principle is in the best interests of the Company and its shareholders.

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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, 2025 (unaudited), as compared with December 31, 2024, and the results of operations for the three months ended March 31, 2025 and 2024 (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, 2024, filed with the SEC on March 7, 2025. Results of operations for the three months ended March 31, 2025 and 2024 are not necessarily indicative of results to be attained for the year ended December 31, 2025 , 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 and eastern Iowa. As of March 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 March 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:


	March 31, 2025				December 31, 2024
(dollars in thousands)	Loans		Deposits		Loans		Deposits

Central	$	1,665,447	$	3,019,629	$	1,676,842	$	2,984,820
Chicago MSA	1,436,341		1,248,547		1,443,777		1,218,098
Illinois	3,101,788		4,268,176		3,120,619		4,202,918
Iowa	359,990		116,414		345,527		115,336
Total	$	3,461,778	$	4,384,590	$	3,466,146	$	4,318,254

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RESULTS OF OPERATIONS

Overview of Recent Financial Results


	Three Months Ended March 31,
(dollars in thousands, except per share amounts)		2025			2024

Total interest and dividend income		$	63,138		$	61,961
Total interest expense		14,430			15,273
Net interest income		48,708			46,688
Provision for credit losses		576			527
Net interest income after provision for credit losses		48,132			46,161
Total noninterest income		9,306			5,626
Total noninterest expense		31,935			31,268
Income before income tax expense		25,503			20,519
Income tax expense		6,428			5,261
Net income		$	19,075		$	15,258

Adjusted net income (1)		$	19,253		$	18,073



Pre-provision net revenue (1)		$	26,079		$	21,046
Pre-provision net revenue less net charge-offs (recoveries) (1)		25,650			21,253
Adjusted pre-provision net revenue (1)		26,328			24,983
Adjusted pre-provision net revenue less net charge-offs (recoveries) (1)		25,899			25,190

Share and Per Share Information
Earnings per share - diluted		$	0.60		$	0.48
Adjusted earnings per share - diluted (1)		0.61			0.57

Weighted average shares of common stock outstanding		31,584,989			31,662,954

Summary Ratios
Net interest margin *		4.12		%	3.94		%
Net interest margin (tax-equivalent basis) * (1) (2)		4.16			3.99
Yield on loans *		6.39			6.33
Yield on interest-earning assets *		5.34			5.23

Cost of total deposits *		1.21			1.26
Cost of funds *		1.32			1.37

Efficiency ratio		53.85		%	58.41		%
Efficiency ratio (tax-equivalent basis) (1) (2)		53.35			57.78
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)		53.12			53.77

Return on average assets *		1.54		%	1.23		%
Return on average stockholders' equity *		13.95			12.42
Return on average tangible common equity * (1)		16.20			14.83

Adjusted return on average assets * (1)		1.55		%	1.45		%
Adjusted return on average stockholders' equity * (1)		14.08			14.72
Adjusted return on average tangible common equity * (1)		16.36			17.57

_________________________________________________

* 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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Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

For the three months ended March 31, 2025, net income was $19.1 million, increasing by $3.8 million, or 25.0%, when compared to net income for the three months ended March 31, 2024. Notable changes include the following:

• Realized losses of $3.4 million on the sale of debt securities included in the first quarter 2024 results were not present in the first quarter 2025 results;

• A $2.0 million increase in net interest income, primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on debt securities;

• A $0.9 million increase in salaries and benefits expense, primarily driven by annual merit increases and higher medical benefits expense;

• The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the first quarter of 2024;

• A $0.3 million negative mortgage servicing rights ("MSR") fair value adjustment included in the first quarter 2025 results, compared to a $0.1 million positive MSR fair value adjustment included in the first quarter 2024 results; and

• A $1.2 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, discounts and premiums, as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.

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	Three Months Ended
	March 31, 2025						March 31, 2024
(dollars in thousands)	Average Balance		Interest		Yield/Cost *		Average Balance		Interest		Yield/Cost *

ASSETS
Loans	$	3,460,906	$	54,537	6.39	%	$	3,371,219	$	53,020	6.33	%
Debt securities	1,204,424		7,405		2.49		1,213,947		6,801		2.25
Deposits with banks	120,014		1,065		3.60		167,297		1,952		4.69
Other	12,677		131		4.19		12,986		188		5.82
Total interest-earning assets	4,798,021		$	63,138	5.34	%	4,765,449		$	61,961	5.23	%
Allowance for credit losses	(42,061)						(40,238)
Noninterest-earning assets	276,853						278,253
Total assets	$	5,032,813					$	5,003,464

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,120,608	$	1,453	0.53	%	$	1,127,684	$	1,311	0.47	%
Money market	807,728		4,397		2.21		812,684		4,797		2.37
Savings	569,494		370		0.26		611,224		443		0.29
Time	784,099		6,719		3.48		664,498		5,925		3.59
Brokered	—		—		—		82,150		1,117		5.47
Total interest-bearing deposits	3,281,929		12,939		1.60		3,298,240		13,593		1.66
Securities sold under agreements to repurchase	8,754		22		1.02		32,456		152		1.89
Borrowings	12,890		109		3.41		13,003		125		3.87
Subordinated notes	39,563		470		4.82		39,484		470		4.78
Junior subordinated debentures issued to capital trusts	52,856		890		6.83		52,796		933		7.11
Total interest-bearing liabilities	3,395,992		$	14,430	1.72	%	3,435,979		$	15,273	1.79	%
Noninterest-bearing deposits	1,045,733						1,036,402
Noninterest-bearing liabilities	36,373						37,107
Total liabilities	4,478,098						4,509,488
Stockholders' Equity	554,715						493,976
Total liabilities and stockholders’ equity	$	5,032,813					$	5,003,464

Net interest income/Net interest margin (1)			$	48,708	4.12	%			$	46,688	3.94	%
Tax-equivalent adjustment (2)			545		0.04				575		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)			$	49,253	4.16	%			$	47,263	3.99	%
Net interest rate spread (4)					3.62	%					3.44	%
Net interest-earning assets (5)	$	1,402,029					$	1,329,470
Ratio of interest-earning assets to interest-bearing liabilities	1.41						1.39
Cost of total deposits					1.21	%					1.26	%
Cost of funds					1.32						1.37

_________________________________________________

* 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 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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The following table sets forth the components of loan interest income and their contributions to the total loan yield.


	Three Months Ended March 31,
		2025	2024
(dollars in thousands)			Interest		Yield Contribution *		Interest		Yield Contribution *

Contractual interest			$	51,435	6.03	%	$	50,517	6.04	%
Loan fees			1,363		0.16		1,041		0.12
Accretion of acquired loan discounts			1,112		0.13		1,195		0.14
Nonaccrual interest recoveries			627		0.07		267		0.03
Total loan interest income			$	54,537	6.39	%	$	53,020	6.33	%

_________________________________________________

* Annualized measure.

The following table sets forth the components of net interest income and their contributions to the net interest margin.


	Three Months Ended March 31,
		2025	2024
(dollars in thousands)			Interest		Net Interest Margin Contribution *		Interest		Net Interest Margin Contribution *

Interest income:
Contractual interest on loans			$	51,435	4.35	%	$	50,517	4.26	%
Loan fees			1,363		0.12		1,041		0.09
Accretion of acquired loan discounts			1,112		0.09		1,195		0.10
Nonaccrual interest recoveries			627		0.05		267		0.02
Debt securities			7,405		0.63		6,801		0.57
Interest-bearing deposits in bank			1,065		0.09		1,952		0.17
Other			131		0.01		188		0.02
Total interest income			63,138		5.34		61,961		5.23

Interest expense:
Deposits			12,939		1.09		13,593		1.15
Other interest-bearing liabilities			1,491		0.13		1,680		0.14
Total interest expense			14,430		1.22		15,273		1.29
Net interest income			48,708		4.12		46,688		3.94
Tax-equivalent adjustment (1)			545		0.04		575		0.05
Net interest income (tax-equivalent) (1) (2)			$	49,253	4.16	%	$	47,263	3.99	%

_________________________________________________

* Annualized measure.

(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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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.


	Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024
		Increase (Decrease) Due to					Total
(dollars in thousands)			Volume			Rate

Interest-earning assets:
Loans				$	1,414		$	103	$	1,517
Debt securities				(54)			658		604
Deposits with banks				(480)			(407)		(887)
Other				(4)			(53)		(57)
Total interest-earning assets				876			301		1,177

Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand				(8)			150		142
Money market				(29)			(371)		(400)
Savings				(29)			(44)		(73)
Time				1,031			(237)		794
Brokered				(1,117)			—		(1,117)
Total interest-bearing deposits				(152)			(502)		(654)
Securities sold under agreements to repurchase				(80)			(50)		(130)
Borrowings				(1)			(15)		(16)
Subordinated notes				1			(1)		—
Junior subordinated debentures issued to capital trusts				1			(44)		(43)
Total interest-bearing liabilities				(231)			(612)		(843)
Change in net interest income				$	1,107		$	913	$	2,020

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

Net interest income for the three months ended March 31, 2025 was $48.7 million, increasing $2.0 million, or 4.3%, when compared to the three months ended March 31, 2024. The increase is primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on debt securities. Also contributing was a $0.7 million increase in nonaccrual interest recoveries and loan fees.

Net interest margin increased to 4.12% for the three months ended March 31, 2025, compared to 3.94% for the three months ended March 31, 2024. The increase was primarily attributable to higher yields on interest-earning assets, a decrease in funding costs, and an increase in nonaccrual interest recoveries and loan fees. The contribution of acquired loan discount accretion to net interest margin was 9 basis points for the three months ended March 31, 2025 compared to 10 basis points for the three months ended March 31, 2024. Additionally, the contribution of nonaccrual interest recoveries and loan fees to net interest margin increased to 17 basis points during the three months ended March 31, 2025, compared to 11 basis points for the three months ended March 31, 2024.

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The quarterly net interest margins were as follows:


	2025		2024
Three months ended:
March 31	4.12	%	3.94	%
June 30	—		3.95
September 30	—		3.98
December 31	—		3.96

In early 2024, our net interest margin was relatively stable, with increases in our loans and debt security 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. These changes contributed to a decrease in funding costs while maturing fixed rate loans and securities continued to reprice at higher rates, driving our net interest margin higher in the first quarter of 2025.

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 interest rate fluctuations and may not always be the case.

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Provision for Credit Losses

The following table sets forth the components of provision for credit losses for the periods indicated:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

PROVISION FOR CREDIT LOSSES
Loans		$	496	$	560
Unfunded lending-related commitments		80		(33)

Total provision for credit losses		$	576	$	527

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

The Company recorded a provision for credit losses of $0.6 million for the three months ended March 31, 2025. The 2025 provision for credit losses primarily reflects a $0.8 million increase in required reserves resulting from changes in qualitative factors; a $0.1 million increase in required reserves driven by changes within the portfolio; and a $0.3 million decrease in specific reserves.

Credit losses are 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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Noninterest Income

The following table sets forth the major categories of noninterest income for the periods indicated:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024		$ Change		% Change

Card income		$	2,548	$	2,616	$	(68)	(2.6)	%
Wealth management fees		2,841		2,547		294		11.5
Service charges on deposit accounts		1,944		1,869		75		4.0
Mortgage servicing		990		1,055		(65)		(6.2)
Mortgage servicing rights fair value adjustment		(308)		80		(388)		NM
Gains on sale of mortgage loans		252		298		(46)		(15.4)
Realized gains (losses) on sales of securities		—		(3,382)		3,382		NM
Unrealized gains (losses) on equity securities		8		(16)		24		NM
Gains (losses) on foreclosed assets		13		87		(74)		(85.1)
Gains (losses) on other assets		54		(635)		689		NM
Income on bank owned life insurance		164		164		—		—
Other noninterest income		800		943		(143)		(15.2)
Total		$	9,306	$	5,626	$	3,680	65.4	%

_________________________________________________

NM Not meaningful.

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

Total noninterest income for the three months ended March 31, 2025, was $9.3 million, an increase of $3.7 million, or 65.4%, from the three months ended March 31, 2024. Notable changes in noninterest income include the following:

• Realized losses of $3.4 million on the sale of debt securities included in the first quarter 2024 results were not present in the first quarter 2025 results;

• The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the first quarter of 2024;

• A $0.3 million negative MSR fair value adjustment included in the first quarter 2025 results compared to a $0.1 million positive MSR fair value adjustment included in the first quarter 2024 results; and

• A $0.3 million increase in wealth management fees, driven primarily by higher assets under management and an increase in farm management income.

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Noninterest Expense

The following table sets forth the major categories of noninterest expense for the periods indicated:


	Three Months Ended March 31,
(dollars in thousands)		2025		2024		$ Change		% Change

Salaries		$	17,053	$	16,657	$	396	2.4	%
Employee benefits		3,285		2,805		480		17.1
Occupancy of bank premises		2,625		2,582		43		1.7
Furniture and equipment		445		550		(105)		(19.1)
Data processing		2,717		2,925		(208)		(7.1)
Marketing and customer relations		1,144		996		148		14.9
Amortization of intangible assets		695		710		(15)		(2.1)
FDIC insurance		562		560		2		0.4
Loan collection and servicing		383		452		(69)		(15.3)
Foreclosed assets		5		49		(44)		(89.8)
Other noninterest expense		3,021		2,982		39		1.3
Total		$	31,935	$	31,268	$	667	2.1	%

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

Total noninterest expense for the three months ended March 31, 2025, was $31.9 million, an increase of $0.7 million, or 2.1%, from the three months ended March 31, 2024. Notable changes in noninterest expense include the following:

• A $0.5 million increase in employee benefits expense, primarily driven by increased medical benefits cost;

• A $0.4 million increase in salaries expense, primarily driven by annual merit increases; and

• A $0.2 million decrease in data processing expense.

Income Taxes

During the three months ended March 31, 2025 and 2024, we recorded income tax expense of $6.4 million, or an effective tax rate of 25.2%, and $5.3 million, or an effective tax rate of 25.6%, respectively. The lower effective tax rate during the first quarter of 2025 was primarily attributable to a $0.2 million tax benefit from stock-based compensation that vested during the first quarter of 2025, compared to a $0.1 million tax benefit during the first quarter of 2024. Additionally, during the second quarter of 2025, we expect to recognize an additional $0.3 million of tax expense related to the 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.

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FINANCIAL CONDITION


(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			$ Change		% Change

Cash and cash equivalents	$	211,591		$	137,692		$	73,899	53.7	%
Debt securities available-for-sale, at fair value	706,135			698,049			8,086		1.2
Debt securities held-to-maturity	490,398			499,858			(9,460)		(1.9)
Loans held for sale	2,721			1,586			1,135		71.6

Loans, before allowance for credit losses	3,461,778			3,466,146			(4,368)		(0.1)
Less: allowance for credit losses	42,111			42,044			67		0.2
Loans, net of allowance for credit losses	3,419,667			3,424,102			(4,435)		(0.1)

Goodwill	59,820			59,820			—		—
Intangible assets, net	17,148			17,843			(695)		(3.9)
Other assets	184,712			193,952			(9,240)		(4.8)
Total assets	$	5,092,192		$	5,032,902		$	59,290	1.2	%

Total deposits	$	4,384,590		$	4,318,254		$	66,336	1.5	%
Securities sold under agreements to repurchase	2,698			28,969			(26,271)		(90.7)
Borrowings	7,209			13,231			(6,022)		(45.5)
Subordinated notes	39,573			39,553			20		0.1
Junior subordinated debentures	52,864			52,849			15		—
Other liabilities	40,201			35,441			4,760		13.4
Total liabilities	4,527,135			4,488,297			38,838		0.9
Total stockholders' equity	565,057			544,605			20,452		3.8
Total liabilities and stockholders' equity	$	5,092,192		$	5,032,902		$	59,290	1.2	%

Tangible assets (1)	$	5,015,224		$	4,955,239		$	59,985	1.2	%
Tangible common equity (1)	488,089			466,942			21,147		4.5

Core deposits (1)	$	4,175,367		$	4,116,058		$	59,309	1.4	%

Share and Per Share Information
Book value per share	$	17.86		$	17.26		$	0.60	3.5	%
Tangible book value per share (1)	15.43			14.80			0.63		4.3

Shares of common stock outstanding	31,631,431			31,559,366

Balance Sheet Ratios
Loan to deposit ratio	78.95		%	80.27		%
Core deposits to total deposits (1)	95.23			95.32
Stockholders' equity to total assets	11.10			10.82
Tangible common equity to tangible assets (1)	9.73			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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Notable changes in our consolidated balance sheet include the following:

• Deposits increased $66.3 million, primarily as a result of higher balances maintained in existing retail accounts;

• The vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand deposit accounts during the first quarter of 2025; and

• Loans were nearly unchanged with payoffs mostly offset by higher line of credit utilization.

Loan Portfolio

The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.


	March 31, 2025				December 31, 2024
(dollars in thousands)	Balance		Percent		Balance		Percent

Commercial and industrial	$	441,261	12.7	%	$	428,389	12.4	%
Commercial real estate - owner occupied	321,990		9.3		322,316		9.3
Commercial real estate - non-owner occupied	891,022		25.7		899,565		25.9
Construction and land development	376,046		10.9		374,657		10.8
Multi-family	424,096		12.3		431,524		12.4
One-to-four family residential	455,376		13.2		463,968		13.4
Agricultural and farmland	292,240		8.4		293,375		8.5
Municipal, consumer, and other	259,747		7.5		252,352		7.3
Loans, before allowance for credit losses	3,461,778		100.0	%	3,466,146		100.0	%
Allowance for credit losses	(42,111)				(42,044)
Loans, net of allowance for credit losses	$	3,419,667			$	3,424,102

Loans, before allowance for credit losses were $3.46 billion at March 31, 2025, nearly unchanged from December 31, 2024. Notable changes include the following:

• A $23.2 million increase in grain elevator lines of credit in the commercial and industrial segment, primarily due to seasonally higher line utilization;

• A $12.0 million reduction on two lines of credit that funded shortly before and paid off after December 31, 2024; and

• Larger payoffs in the one-to-four family residential, multi-family, and commercial real estate – non-owner occupied segments, which were partially offset by draws on existing loans in the construction and development segment and new originations in the municipal, consumer, and other segment.

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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 March 31, 2025 was as follows:


	March 31, 2025
(dollars in thousands)	Balance		Substandard Risk Rating

Manufacturing	$	49,831	$	333
Auto repair and dealers	35,392		—
Health care and social assistance	34,184		—
Accommodation and food services	32,088		3,885
Grain elevators	27,104		—
Retail trade	26,329		—
Construction	19,916		1,534
Real estate, rental, and leasing	19,168		26
Wholesale trade	14,084		—
Other services (except public administration)	13,493		252
Arts, entertainment, and recreation	11,636		74
Administrative and support services	10,487		—
Professional, scientific, and technical services	7,596		—
Agriculture, forestry, fishing, and hunting	6,523		—
Education services	6,435		1,278
Finance and insurance	4,553		—
Other	3,171		—
Total	$	321,990	$	7,382

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 March 31, 2025 was as follows:


	March 31, 2025
(dollars in thousands)	Balance		Substandard Risk Rating		Weighted Average LTV (1)

Warehouse and manufacturing	$	182,012	$	—	54	%
Retail	181,822		7,468		55
Office	161,274		4,834		58
Senior Living	105,303		12,726		53
Hotel	85,419		7,485		56
Mixed use (commercial and residential)	66,453		—		63
Medical office	32,981		—		58
Gas station	24,594		—		61
Auto repair and dealers	20,367		—		54
Restaurant and bar	12,528		—		59
Other	18,269		—		54
Total	$	891,022	$	32,513	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 $424.1 million as of March 31, 2025, and are primarily made based on projected cash flows from the rental or sale of the underlying collateral. As of March 31, 2025, multi-family loans had a weighted average LTV of 57%, based on the most recent appraisals available, which are generally obtained at the time of origination.

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Construction and land development loans totaled $376.0 million as of March 31, 2025. The majority of these loans consist of multi-family and one-to-four family residential construction projects to either be sold upon completion or held for long-term investment, but also include other property types to be 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 all exposures over $500 thousand. Additionally, a robust internal review process reviews more than 45% of loan commitments on a rolling 24 month basis that is in addition to 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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Loan Portfolio Maturities

The following table summarizes the scheduled maturities of the loan portfolio as of March 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	$	235,320	$	143,402	$	62,539	$	—	$	441,261
Commercial real estate - owner occupied	45,757		176,841		79,641		19,751		321,990
Commercial real estate - non-owner occupied	194,642		585,146		110,776		458		891,022
Construction and land development	169,493		178,573		15,502		12,478		376,046
Multi-family	97,943		282,885		41,968		1,300		424,096
One-to-four family residential	84,811		156,438		89,168		124,959		455,376
Agricultural and farmland	125,872		125,026		36,703		4,639		292,240
Municipal, consumer, and other	116,135		46,114		65,679		31,819		259,747
Total	$	1,069,973	$	1,694,425	$	501,976	$	195,404	$	3,461,778

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	$	46,948	$	6,362	$	53,310	$	152,631	$	205,941
Commercial real estate - owner occupied	66,863		42,581		109,444		166,789		276,233
Commercial real estate - non-owner occupied	95,306		21,425		116,731		579,649		696,380
Construction and land development	68,490		13,448		81,938		124,615		206,553
Multi-family	60,795		14,592		75,387		250,766		326,153
One-to-four family residential	74,821		56,670		131,491		239,074		370,565
Agricultural and farmland	6,172		12,176		18,348		148,020		166,368
Municipal, consumer, and other	36,638		19,380		56,018		87,594		143,612
Total	$	456,033	$	186,634	$	642,667	$	1,749,138	$	2,391,805

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Nonperforming Assets

Our nonperforming loans and nonperforming assets were as follows:


(dollars in thousands)	March 31, 2025			December 31, 2024

NONPERFORMING ASSETS
Nonaccrual	$	5,102		$	7,652
Past due 90 days or more, still accruing	4			4
Total nonperforming loans	5,106			7,656
Foreclosed assets	460			367
Total nonperforming assets	$	5,566		$	8,023

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	1,350		$	1,573

Allowance for credit losses	$	42,111		$	42,044
Loans, before allowance for credit losses	3,461,778			3,466,146

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses	1.22		%	1.21		%
Allowance for credit losses to nonaccrual loans	825.38			549.45
Allowance for credit losses to nonperforming loans	824.74			549.16
Nonaccrual loans to loans, before allowance for credit losses	0.15			0.22
Nonperforming loans to loans, before allowance for credit losses	0.15			0.22
Nonperforming assets to total assets	0.11			0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets	0.16			0.23

Total nonperforming assets were $5.6 million at March 31, 2025, a decrease of 30.6%, when compared to $8.0 million at December 31, 2024. Additionally, of the $5.1 million of nonperforming loans held as of March 31, 2025, $1.4 million are either wholly or partially guaranteed by the U.S. Government. The $2.5 million decrease in nonperforming assets from December 31, 2024 was primarily attributable to the pay-off of a $1.6 million nonaccrual commercial real estate – non-owner occupied credit.

Risk Classification of Loans

Our risk classifications of loans were as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024

Pass	$	3,256,399	$	3,264,396
Pass-watch	86,821		83,947
Special mention	44,834		46,590
Substandard	73,724		71,213
Total	$	3,461,778	$	3,466,146

Loans rated pass-watch or worse were relatively stable as of March 31, 2025, increasing $3.6 million, or 1.8%, from December 31, 2024.

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Net Charge-offs (Recoveries)

The following table summarizes net charge-offs (recoveries) to average loans by loan category.


	Three Months Ended March 31,
(dollars in thousands)		2025			2024

Net charge-offs (recoveries)
Commercial and industrial		$	326		$	(11)
Commercial real estate - owner occupied		(1)			(2)
Commercial real estate - non-owner occupied		—			(242)
Construction and land development		5			(1)
Multi-family		—			—
One-to-four family residential		41			(63)
Agricultural and farmland		(38)			(7)
Municipal, consumer, and other		96			119
Total		$	429		$	(207)

Average loans
Commercial and industrial		$	444,711		$	411,384
Commercial real estate - owner occupied		323,501			297,342
Commercial real estate - non-owner occupied		890,466			882,704
Construction and land development		368,489			366,912
Multi-family		433,053			414,315
One-to-four family residential		460,809			491,769
Agricultural and farmland		278,054			277,439
Municipal, consumer, and other		261,823			229,354
Total		$	3,460,906		$	3,371,219

Charge-offs (recoveries) to average loans *
Commercial and industrial		0.30		%	(0.01)		%
Commercial real estate - owner occupied		—			—
Commercial real estate - non-owner occupied		—			(0.11)
Construction and land development		0.01			—
Multi-family		—			—
One-to-four family residential		0.04			(0.05)
Agricultural and farmland		(0.06)			(0.01)
Municipal, consumer, and other		0.15			0.21
Total		0.05		%	(0.02)		%

_________________________________________________

* 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, heightened net charge-offs within the commercial and industrial segment are primarily related to equipment finance loans which were purchased as part of a pool of loans during 2023.

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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 March 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.


	March 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	$	29,969	1.20	%	$	—	—	%	$	29,969	1.20	%
U.S. government agency	12,395		2.69		—		—		12,395		2.69
Municipal	7,026		1.84		6,431		3.01		13,457		2.40
Mortgage-backed:
Agency residential	250		3.86		—		—		250		3.86
Agency commercial	10,189		1.91		—		—		10,189		1.91

Total	$	59,829	1.72	%	$	6,431	3.01	%	$	66,260	1.84	%
Due after 1 year through 5 years
U.S. Treasury	$	70,019	1.35	%	$	—	—	%	$	70,019	1.35	%
U.S. government agency	25,261		2.34		34,975		2.22		60,236		2.27
Municipal	57,415		1.65		17,804		3.13		75,219		2.00
Mortgage-backed:
Agency residential	10,470		2.63		11,058		2.12		21,528		2.37
Agency commercial	71,200		1.65		87,183		2.36		158,383		2.04
Corporate	26,863		5.25		—		—		26,863		5.25
Total	$	261,228	2.05	%	$	151,020	2.40	%	$	412,248	2.18	%
Due after 5 years through 10 years
U.S. Treasury	$	9,700	1.66	%	$	—	—	%	$	9,700	1.66	%
U.S. government agency	15,955		3.42		53,502		2.64		69,457		2.82
Municipal	70,358		1.77		8,712		3.64		79,070		1.98
Mortgage-backed:
Agency residential	52,533		2.12		—		—		52,533		2.12
Agency commercial	8,187		2.33		154,191		1.81		162,378		1.83
Corporate	32,890		4.53		—		—		32,890		4.53
Total	$	189,623	2.50	%	$	216,405	2.09	%	$	406,028	2.28	%
Due after 10 years


Municipal	$	14,898	1.69	%	$	2,252	3.43	%	$	17,150	1.92	%
Mortgage-backed:
Agency residential	183,103		4.01		72,250		3.64		255,353		3.91
Agency commercial	36,872		2.45		42,040		2.10		78,912		2.26
Corporate	8,940		6.27		—		—		8,940		6.27
Total	$	243,813	3.72	%	$	116,542	3.08	%	$	360,355	3.51	%
Total
U.S. Treasury	$	109,688	1.34	%	$	—	—	%	$	109,688	1.34	%
U.S. government agency	53,611		2.74		88,477		2.48		142,088		2.58
Municipal	149,697		1.72		35,199		3.25		184,896		2.01
Mortgage-backed:
Agency residential	246,356		3.55		83,308		3.44		329,664		3.52
Agency commercial	126,448		1.95		283,414		2.02		409,862		2.00
Corporate	68,693		5.03		—		—		68,693		5.03
Total	$	754,493	2.67	%	$	490,398	2.43	%	$	1,244,891	2.58	%

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SOURCES OF FUNDS

Deposits

Management continues to focus on growing deposits through the Company’s relationship-driven banking philosophy and community-focused marketing programs. Additionally, the Bank continues to add and improve digital banking services to solidify deposit relationships.

The following table sets forth the distribution of average deposits, by account type:


	Three Months Ended March 31,												Percent Change in Average Balance
	2025						2024
(dollars in thousands)	Average Balance		Percent of Total Deposits		Weighted Average Cost *		Average Balance		Percent of Total Deposits		Weighted Average Cost *

Noninterest-bearing	$	1,045,733	24.1	%	—	%	$	1,036,402	23.9	%	—	%	0.9	%
Interest-bearing demand	1,120,608		25.9		0.53		1,127,684		26.0		0.47		(0.6)
Money market	807,728		18.7		2.21		812,684		18.8		2.37		(0.6)
Savings	569,494		13.2		0.26		611,224		14.1		0.29		(6.8)
Time	784,099		18.1		3.48		664,498		15.3		3.59		18.0
Brokered	—		—		—		82,150		1.9		5.47		(100.0)
Total deposits	$	4,327,662	100.0	%	1.21	%	$	4,334,642	100.0	%	1.26	%	(0.2)	%

_________________________________________________

* Annualized measure.

Average deposit balances were relatively stable in 2025 compared to 2024, with growth in time deposits mostly offset by the planned repayment of brokered time deposits at scheduled maturities. Additionally, the vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand accounts during the first quarter of 2025.

The following table sets forth time deposits by remaining maturity as of March 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	$	112,241	$	115,071	$	60,785	$	38,476	$	326,573
Amounts of $100,000 or more but less than $250,000	89,252		101,064		41,749		19,474		251,539
Amounts of $250,000 or more	83,493		42,867		61,665		21,198		209,223
Total time deposits	$	284,986	$	259,002	$	164,199	$	79,148	$	787,335

As of March 31, 2025 and 2024, the Bank’s uninsured deposits were estimated to be $894.4 million and $949.4 million, respectively.

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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 March 31, 2025 and December 31, 2024, our on-balance sheet sources of liquidity included the following:


(dollars in thousands)	March 31, 2025		December 31, 2024

Cash and cash equivalents	$	211,591	$	137,692
Fair value of unpledged securities	743,840		705,106
Total cash and unpledged securities	$	955,431	$	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 March 31, 2025, our current borrowings and additional available borrowing capacity were as follows:


	March 31, 2025
(dollars in thousands)	Current Balance		Additional Available Capacity

FHLB	$	7,209	$	1,028,078
Federal Reserve	—		106,279
Federal funds lines of credit	—		80,000
Total	$	7,209	$	1,214,357

Further, the Bank could utilize brokered deposits as an additional source of liquidity, as needed.

As of March 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 March 31, 2025, the Bank had no material commitments for capital expenditures.

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Holding Company Liquidity

The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of March 31, 2025, the Holding Company had cash and cash equivalents of $13.9 million.

The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. 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 such limitations will not impact the Holding Company’s ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended March 31, 2025 and 2024, the Bank paid $7.5 million and $8.0 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 three months ended March 31, 2025 and 2024, holding company operating expenses consisted of interest expense of $1.4 million and $1.4 million, respectively, and other operating expenses of $1.0 million and $1.1 million, respectively.

Additionally, the Holding Company paid $6.7 million and $6.1 million of dividends to stockholders during the three months ended March 31, 2025 and 2024, respectively.

As of March 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 March 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 March 31, 2025, the Holding Company had no material commitments for capital expenditures.

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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 March 31, 2025 and December 31, 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.

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.


	March 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)	16.85	%	16.51	%	10.50	%	N/A
Tier 1 Capital (to Risk Weighted Assets)	14.77		14.50		8.50		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	13.48		13.21		7.00		N/A
Tier 1 Capital (to Average Assets)	11.64		11.51		4.00		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	16.46	%	16.11	%	10.50	%	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	15.38		15.10		8.50		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	15.38		15.10		7.00		6.50
Tier 1 Capital (to Average Assets)	12.12		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 March 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

During 2024, the Company paid quarterly cash dividends of $0.19 per share. In January 2025, the Company announced an increase of $0.02 and paid a $0.21 per share dividend during the first quarter of 2025.

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Stock Repurchase Program

The Company did not repurchase any shares of its common stock during the three months ended March 31, 2025. The Company’s Board of Directors have authorized the repurchase of up to $15.0 million of its common stock under its stock repurchase program in effect until January 1, 2026. As of March 31, 2025, the Company had $15.0 million remaining under the current stock repurchase authorization.

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 14 – Commitments and Contingencies” to the consolidated financial statements.

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 Quarterly Report on Form 10-Q 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, - 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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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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Reconciliation of Non-GAAP Financial Measure —

Adjusted Net Income and Adjusted Return on Average Assets


	Three Months Ended March 31,
(dollars in thousands)		2025			2024

Net income		$	19,075		$	15,258
Less: adjustments


Gains (losses) on closed branch premises		59			(635)
Realized gains (losses) on sales of securities		—			(3,382)
Mortgage servicing rights fair value adjustment		(308)			80
Total adjustments		(249)			(3,937)
Tax effect of adjustments (1)		71			1,122
Total adjustments after tax effect		(178)			(2,815)
Adjusted net income		$	19,253		$	18,073

Average assets		$	5,032,813		$	5,003,464

Return on average assets *		1.54		%	1.23		%
Adjusted return on average assets *		1.55			1.45

_________________________________________________

* Annualized measure.

(1) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measure —

Adjusted Earnings Per Share


	Three Months Ended March 31,
(dollars in thousands, except per share amounts)		2025		2024

Numerator:
Net income		$	19,075	$	15,258



Adjusted net income		$	19,253	$	18,073



Denominator:
Weighted average common shares outstanding		31,584,989		31,662,954
Dilutive effect of outstanding restricted stock units		126,682		140,233
Weighted average common shares outstanding, including all dilutive potential shares		31,711,671		31,803,187

Earnings per share - basic		$	0.60	$	0.48
Earnings per share - diluted		$	0.60	$	0.48

Adjusted earnings per share - basic		$	0.61	$	0.57
Adjusted earnings per share - diluted		$	0.61	$	0.57

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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)


	Three Months Ended March 31,
(dollars in thousands)		2025		2024

Net interest income		$	48,708	$	46,688
Noninterest income		9,306		5,626
Noninterest expense		(31,935)		(31,268)
Pre-provision net revenue		26,079		21,046
Less: adjustments


Gains (losses) on closed branch premises		59		(635)
Realized gains (losses) on sales of securities		—		(3,382)
Mortgage servicing rights fair value adjustment		(308)		80
Total adjustments		(249)		(3,937)
Adjusted pre-provision net revenue		$	26,328	$	24,983

Pre-provision net revenue		$	26,079	$	21,046
Less: net charge-offs (recoveries)		429		(207)
Pre-provision net revenue less net charge-offs (recoveries)		$	25,650	$	21,253

Adjusted pre-provision net revenue		$	26,328	$	24,983
Less: net charge-offs (recoveries)		429		(207)
Adjusted pre-provision net revenue less net charge-offs (recoveries)		$	25,899	$	25,190

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Reconciliation of Non-GAAP Financial Measure —

Net Interest Income and Net Interest Margin (Tax-Equivalent Basis)


	Three Months Ended March 31,
(dollars in thousands)		2025			2024

Net interest income (tax-equivalent basis)
Net interest income		$	48,708		$	46,688
Tax-equivalent adjustment (1)		545			575
Net interest income (tax-equivalent basis) (1)		$	49,253		$	47,263

Net interest margin (tax-equivalent basis)
Net interest margin *		4.12		%	3.94		%
Tax-equivalent adjustment * (1)		0.04			0.05
Net interest margin (tax-equivalent basis) * (1)		4.16		%	3.99		%

Average interest-earning assets		$	4,798,021		$	4,765,449

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* 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 Measure —

Efficiency Ratio (Tax-Equivalent Basis) and Adjusted Efficiency Ratio (Tax-Equivalent Basis)


	Three Months Ended March 31,
(dollars in thousands)		2025			2024

Total noninterest expense		$	31,935		$	31,268
Less: amortization of intangible assets		695			710
Noninterest expense excluding amortization of intangible assets		$	31,240		$	30,558






Net interest income		$	48,708		$	46,688
Total noninterest income		9,306			5,626
Operating revenue		58,014			52,314
Tax-equivalent adjustment (1)		545			575
Operating revenue (tax-equivalent basis) (1)		58,559			52,889
Less: adjustments to noninterest income
Gains (losses) on closed branch premises		59			(635)
Realized gains (losses) on sales of securities		—			(3,382)
Mortgage servicing rights fair value adjustment		(308)			80
Total adjustments to noninterest income		(249)			(3,937)
Adjusted operating revenue (tax-equivalent basis) (1)		$	58,808		$	56,826

Efficiency ratio		53.85		%	58.41		%
Efficiency ratio (tax-equivalent basis) (1)		53.35			57.78
Adjusted efficiency ratio (tax-equivalent basis) (1)		53.12			53.77

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(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)	March 31, 2025			December 31, 2024

Tangible Common Equity
Total stockholders' equity	$	565,057		$	544,605
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	17,148			17,843
Tangible common equity	$	488,089		$	466,942

Tangible Assets
Total assets	$	5,092,192		$	5,032,902
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	17,148			17,843
Tangible assets	$	5,015,224		$	4,955,239

Total stockholders' equity to total assets	11.10		%	10.82		%
Tangible common equity to tangible assets	9.73			9.42

Shares of common stock outstanding	31,631,431			31,559,366

Book value per share	$	17.86		$	17.26
Tangible book value per share	15.43			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


	Three Months Ended March 31,
(dollars in thousands)		2025			2024

Average Tangible Common Equity
Total stockholders' equity		$	554,715		$	493,976
Less: Goodwill		59,820			59,820
Less: Intangible assets, net		17,480			20,334
Average tangible common equity		$	477,415		$	413,822

Net income		$	19,075		$	15,258
Adjusted net income		19,253			18,073

Return on average stockholders' equity *		13.95		%	12.42		%
Return on average tangible common equity *		16.20			14.83

Adjusted return on average stockholders' equity *		14.08		%	14.72		%
Adjusted return on average tangible common equity *		16.36			17.57

* Annualized measure.

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Reconciliation of Non-GAAP Financial Measure —

Core Deposits


(dollars in thousands)	March 31, 2025			December 31, 2024

Core Deposits
Total deposits	$	4,384,590		$	4,318,254
Less: time deposits of $250,000 or more	209,223			202,196
Less: brokered deposits	—			—
Core deposits	$	4,175,367		$	4,116,058

Core deposits to total deposits	95.23		%	95.32		%

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Managing risk is an essential part of successfully managing a financial institution. Our most prominent risk exposures are interest rate risk and credit risk.

Interest Rate Risk

Our most significant form of market risk is interest rate risk inherent in the normal course of lending and deposit-taking activities. Interest rate risk is the potential reduction of net interest income as a result of changes in interest rates. Management believes that our ability to successfully respond to changes in interest rates will have a significant impact on our financial results. To that end, management actively monitors and manages our interest rate exposure.

The Company’s Asset/Liability Management Committee (“ALCO”), which is authorized by the Company’s board of directors, monitors our interest rate sensitivity and makes decisions relating to that process. The ALCO’s goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a rising or declining interest rate environment. Profitability is affected by fluctuations in interest rates. A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis.

We monitor the impact of changes in interest rates on our net interest income and economic value of equity (“EVE”) using rate shock analysis. Net interest income simulations measure the short-term earnings exposure from changes in market rates of interest in a rigorous and explicit fashion. Our current financial position is combined with assumptions regarding future business to calculate net interest income under varying hypothetical rate scenarios. EVE measures our long-term earnings exposure from changes in market rates of interest. EVE is defined as the present value of assets minus the present value of liabilities at a point in time. A decrease in EVE due to a specified rate change indicates a decline in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet.

The base and shock scenarios in the rate shock analysis assume a static balance sheet, static interest rates, no changes to product mix shift, and cash flow reinvestment at current market interest rates. We also make assumptions for our deposit betas and asset prepayments, based on historical experience.

Deposit Betas

Deposit pricing changes are primarily driven by changes in the federal funds rate, with the relationship between deposit rates and federal funds rate defined as deposit beta. We define cumulative deposit beta as the change in our quarterly cost of deposits divided by the change in the upper level of the stated federal funds rate range over a specified period. During the most recent rising rate cycle, which was from the fourth quarter of 2021 through the second quarter of 2024, our cumulative deposit beta was 23.6%. Since the start of the current falling rate cycle, which began with the third quarter of 2024, our cumulative deposit beta has been 15.1%.

Asset Prepayments

We include prepayment assumptions for both our loan and securities portfolios, based on historical experience. Generally, mortgage portfolio prepayments increase in lower rate environments, while commercial and consumer portfolios have historically remained more consistent throughout rate cycles.

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The following table sets forth the estimated impact on our EVE and net interest income of immediate and parallel changes in interest rates at the specified levels.


Change in Interest Rates (basis points)	Estimated Increase (Decrease) in EVE		Increase (Decrease) in Estimated Net Interest Income
			Year 1		Year 2
March 31, 2025
+400	29.8	%	7.8	%	14.8	%
+300	24.6		6.2		11.7
+200	17.9		4.7		8.6
+100	9.6		2.8		4.8
-100	(11.5)		(4.6)		(6.6)
-200	(23.6)		(6.4)		(11.1)
-300	(22.5)		(7.3)		(15.0)
-400	(15.2)		(7.8)		(16.6)

December 31, 2024
+400	22.0	%	4.9	%	11.3	%
+300	18.3		3.9		9.0
+200	13.4		3.2		6.7
+100	7.3		2.0		3.8
-100	(9.1)		(4.2)		(6.2)
-200	(20.3)		(5.5)		(10.2)
-300	(22.1)		(5.7)		(14.0)
-400	(14.1)		(5.8)		(15.9)

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in EVE and net interest income requires that we make certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The EVE and net interest income table presented above assumes that the composition of our interest-rate-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and, accordingly, the data does not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts based on local competitive factors, which could change the actual impact on EVE and net interest income. The table also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or the repricing characteristics of specific assets and liabilities. Accordingly, although the EVE and net interest income table provides an indication of our sensitivity to interest rate changes at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

Credit Risk

Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We manage credit risk in the loan portfolio by adhering to well-defined underwriting criteria and account administration standards established by management. Our loan policy documents underwriting standards, approval levels, exposure limits and other limits or standards deemed necessary and prudent. Portfolio diversification at the borrower, industry, and product levels is actively managed to mitigate concentration risk. In addition, credit risk management also includes an independent loan review process that assesses compliance with loan policy, compliance with loan documentation standards, accuracy of the risk rating and overall credit quality of the loan portfolio.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report was carried out under the supervision and with the participation of the Company’s Chief Executive Officer, Chief Financial Officer and other members of the Company’s senior management. The Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2025, the end of the period covered by this report, the Company’s disclosure controls and procedures were effective in ensuring that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is: (i) accumulated and communicated to the Company’s management (including the Chief Executive Officer and Chief Financial Officer) to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) or Rule 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are sometimes party to legal actions that are routine and incidental to our business. Management, in consultation with legal counsel, does not expect the ultimate disposition of any or a combination of these matters to have a material adverse effect on our assets, business, cash flow, financial condition, liquidity, prospects and results of operations; however, given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to our business, including laws and regulations governing consumer protection, fair lending, fair labor, privacy, information security, and anti-money laundering and anti-terrorism laws, we, like all banking organizations, are subject to heightened legal and regulatory compliance and litigation risk.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Unregistered Sales of Equity Securities

None.

Issuer Purchases of Equity Securities

On December 17, 2024, the Company’s board of directors approved a stock repurchase program that authorizes the Company to repurchase up to $15.0 million of its common stock. The stock repurchase program will be in effect until January 1, 2026, with the timing of purchases and number of shares repurchased dependent upon a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The Company is not obligated to purchase any shares under the stock repurchase program, and the stock repurchase program may be suspended or discontinued at any time without notice.

The following table sets forth information about the Company’s purchases of its common stock during the first quarter of 2025:


Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (in thousands)
January 1 - 31, 2025	—	$	—	—	$	15,000
February 1 - 28, 2025	—	—		—	15,000
March 1 - 31, 2025	—	—		—	15,000
Total	—	$	—	—	$	15,000

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

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ITEM 5. OTHER INFORMATION

During the fiscal quarter ended March 31, 2025, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

ITEM 6. EXHIBITS


Exhibit No.						Description
10.1						Amendment to the Amended and Restated Employment Agreement, dated March 5 , 2025, by and between the Company, the Bank, and Fred L. Drake

10.2						Amendment to the Amended and Restated Employment Agreement, dated March 5 , 2025, by and between the Company, the Bank, and J. Lance Carter

10.3						Amendment to the Amended and Restated Employment Agreement, dated March 5 , 2025, by and between the Company, the Bank, and Peter Chapman

10.4						Amendment to the Amended and Restated Employment Agreement, dated March 5 , 2025, by and between the Company, the Bank, and Lawrence J. Horvath

10.5						Amendment to the Amended and Restated Employment Agreement, dated March 5 , 2025, by and between the Company, the Bank, and Mark W. Scheirer

31.1						Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).

31.2						Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).

32.1 *						Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350.

32.2 *						Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350.

101.INS						Inline XBRL Instance Document.

101.SCH						Inline XBRL Taxonomy Extension Schema Document.

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.

104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibits 101).

_________________________________________________

* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically incorporates it by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	HBT FINANCIAL, INC.

May 2, 2025	By:	/s/ Peter R. Chapman
		Peter R. Chapman
		Chief Financial Officer
		(on behalf of the registrant and as principal financial officer)

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Part I. Financial Information Item 1. Consolidated Financial Statements Note 1 Accounting Policies Note 2 Securities Note 3 Loans and Related Allowance For Credit Losses Note 4 Loan Servicing Note 5 Foreclosed Assets Note 6 Deposits Note 7 Derivative Financial Instruments Note 8 Accumulated Other Comprehensive Income (loss)Note 9 Earnings Per Share Note 10 Stock-based Compensation Plans Note 11 Regulatory Capital Note 12 Segment Information Note 13 Fair Value Of Financial Instruments Note 14 Commitments and Contingencies Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities, Use Of Proceeds, and Issuer Purchases Of Equity Securities Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

10.1 Amendment to the Amended and Restated Employment Agreement, dated March5, 2025, by and between the Company, the Bank, and Fred L. Drake 10.2 Amendment to the Amended and Restated Employment Agreement, dated March5, 2025, by and between the Company, the Bank, and J. Lance Carter 10.3 Amendment to the Amended and Restated Employment Agreement, dated March5, 2025, by and between the Company, the Bank, and Peter Chapman 10.4 Amendment to the Amended and Restated Employment Agreement, dated March5, 2025, by and between the Company, the Bank, and Lawrence J. Horvath 10.5 Amendment to the Amended and Restated Employment Agreement, dated March5, 2025, by and between the Company, the Bank, and Mark W. Scheirer 31.1 Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). 31.2 Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). 32.1 * Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350. 32.2 * Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350.

HBT 10-Q Quarter ended March 31, 2025

Exhibits