HBT 10-Q Quarterly Report Sept. 30, 2025

HBT FINANCIAL, INC.

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hbt-20250930

Table of Contents

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 September 30, 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 October 23, 2025, there were 31,431,924 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	8
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	84
Item 4.	Controls and Procedures	86
PART II. OTHER INFORMATION		87
Item 1.	Legal Proceedings	87
Item 1A.	Risk Factors	87
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	87
Item 3.	Defaults Upon Senior Securities	87
Item 4.	Mine Safety Disclosures	87
Item 5.	Other Information	88
Item 6.	Exhibits	88

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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 bank failures;

• 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;

• technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence;

• 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;

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• 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;

• 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;

• the possibility that stockholders of CNB Bank Shares, Inc. ("CNBN") may not approve the merger agreement between HBT and CNBN with respect to the proposed merger transaction;

• the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all;

• potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction;

• the diversion of management time on transaction-related issues;

• the ultimate timing, outcome and results of integrating the operations of CNBN into those of HBT;

• the effects of the merger in HBT’s future financial condition, results of operations, strategy and plans;

• regulatory approvals of the transaction;

• the effects of the current U.S. government shutdown, including the impact of prolonged closures or staffing reductions at government agencies effecting 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)	September 30, 2025		December 31, 2024
ASSETS
Cash and due from banks	$	21,767	$	29,552
Interest-bearing deposits with banks	133,366		108,140
Cash and cash equivalents	155,133		137,692


Debt securities available-for-sale, at fair value	793,730		698,049
Debt securities held-to-maturity (fair value of $ 431,493 at 2025 and $ 445,186 at 2024)	466,565		499,858
Equity securities with readily determinable fair value	3,279		3,315
Equity securities with no readily determinable fair value	2,609		2,629
Restricted stock, at cost	4,979		5,086
Loans held for sale	1,432		1,586

Loans, before allowance for credit losses	3,400,029		3,466,146
Allowance for credit losses	( 41,900 )		( 42,044 )
Loans, net of allowance for credit losses	3,358,129		3,424,102

Bank owned life insurance	24,489		23,989
Bank premises and equipment, net	69,965		66,758
Bank premises held for sale	—		317
Foreclosed assets	1,007		367
Goodwill	59,820		59,820
Intangible assets, net	15,760		17,843
Mortgage servicing rights, at fair value	17,254		18,827
Investments in unconsolidated subsidiaries	1,614		1,614
Accrued interest receivable	23,575		24,770
Other assets	35,687		46,280
Total assets	$	5,035,027	$	5,032,902

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,034,181	$	1,046,405
Interest-bearing	3,313,006		3,271,849
Total deposits	4,347,187		4,318,254

Securities sold under agreements to repurchase	—		28,969
Federal Home Loan Bank advances	7,271		13,231
Subordinated notes	—		39,553
Junior subordinated debentures issued to capital trusts	52,894		52,849
Other liabilities	28,546		35,441
Total liabilities	4,435,898		4,488,297

COMMITMENTS AND CONTINGENCIES (Note 15)

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 31,455,803 at 2025 and 31,559,366 at 2024	329		328
Surplus	297,992		297,297
Retained earnings	354,864		316,764
Accumulated other comprehensive income (loss)	( 27,119 )		( 46,765 )
Treasury stock at cost, 1,443,301 shares at 2025 and 1,267,673 at 2024	( 26,937 )		( 23,019 )
Total stockholders’ equity	599,129		544,605
Total liabilities and stockholders’ equity	$	5,035,027	$	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 September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2025		2024		2025		2024

INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	52,818	$	53,650	$	159,343	$	157,753
Federally tax exempt	1,245		1,133		3,628		3,324
Debt securities:
Taxable	8,320		6,453		22,690		18,972
Federally tax exempt	459		502		1,385		1,620
Interest-bearing deposits in bank	1,350		2,230		3,959		6,752
Other interest and dividend income	144		149		388		481
Total interest and dividend income	64,336		64,117		191,393		188,902

INTEREST EXPENSE
Deposits	12,995		14,649		38,769		42,375
Securities sold under agreements to repurchase	—		134		22		415
Borrowings	31		119		170		365
Subordinated notes	387		470		1,326		1,409
Junior subordinated debentures issued to capital trusts	937		1,012		2,754		2,889
Total interest expense	14,350		16,384		43,041		47,453
Net interest income	49,986		47,733		148,352		141,449
PROVISION FOR CREDIT LOSSES	596		603		1,698		2,306
Net interest income after provision for credit losses	49,390		47,130		146,654		139,143

NONINTEREST INCOME
Card income	2,732		2,753		8,077		8,254
Wealth management fees	3,122		2,670		8,789		7,840
Service charges on deposit accounts	2,093		2,081		5,952		5,852
Mortgage servicing	1,019		1,113		3,051		3,279
Mortgage servicing rights fair value adjustment	( 514 )		( 1,488 )		( 1,573 )		( 1,505 )
Gains on sale of mortgage loans	390		461		1,101		1,202
Realized gains (losses) on sales of securities	( 49 )		—		( 49 )		( 3,382 )
Unrealized gains (losses) on equity securities	( 67 )		136		( 36 )		24
Gains (losses) on foreclosed assets	148		( 44 )		175		15
Gains (losses) on other assets	( 14 )		( 2 )		( 88 )		( 637 )
Income on bank owned life insurance	169		170		500		500
Other noninterest income	820		855		2,396		2,499
Total noninterest income	9,849		8,705		28,295		23,941

NONINTEREST EXPENSE
Salaries	16,351		16,325		49,856		49,346
Employee benefits	3,314		2,997		10,179		8,662
Occupancy of bank premises	2,826		2,695		7,922		7,520
Furniture and equipment	737		446		1,757		1,544
Data processing	2,791		2,640		8,195		8,171
Marketing and customer relations	1,035		1,380		3,199		3,372
Amortization of intangible assets	694		710		2,083		2,130
Loss on extinguishment of debt	391		—		391		—
FDIC insurance	561		572		1,674		1,697
Loan collection and servicing	264		476		1,007		1,403
Foreclosed assets	62		19		134		78
Other noninterest expense	3,482		3,062		9,960		9,176
Total noninterest expense	32,508		31,322		96,357		93,099
INCOME BEFORE INCOME TAX EXPENSE	26,731		24,513		78,592		69,985
INCOME TAX EXPENSE	6,966		6,333		20,522		18,477
NET INCOME	$	19,765	$	18,180	$	58,070	$	51,508

EARNINGS PER SHARE - BASIC	$	0.63	$	0.58	$	1.84	$	1.63
EARNINGS PER SHARE - DILUTED	$	0.63	$	0.57	$	1.84	$	1.62
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING	31,481,135		31,559,366		31,525,247		31,600,442

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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

NET INCOME	$	19,765	$	18,180	$	58,070	$	51,508

OTHER COMPREHENSIVE INCOME
Unrealized gains on debt securities available-for-sale	7,239		21,334		25,393		20,603
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income	49		—		49		3,382
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	518		506		1,514		1,495
Unrealized gains (losses) on derivative instruments	—		( 24 )		—		54
Reclassification adjustment for net settlements on derivative instruments	—		( 55 )		( 38 )		( 305 )
Total other comprehensive income, before tax	7,806		21,761		26,918		25,229
Income tax expense	2,186		6,094		7,272		7,055
Total other comprehensive income	5,620		15,667		19,646		18,174
TOTAL COMPREHENSIVE INCOME	$	25,385	$	33,847	$	77,716	$	69,682

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, June 30, 2025	31,495,434	$	329	$	297,479	$	341,750	$	( 32,739 )	$	( 25,922 )	$	580,897

Net income	—	—		—		19,765		—		—		19,765
Other comprehensive income	—	—		—		—		5,620		—		5,620
Stock-based compensation	—	—		513		—		—		—		513


Repurchase of common stock	( 39,631 )	—		—		—		—		( 1,015 )		( 1,015 )
Cash dividends and dividend equivalents ($ 0.21 per share)	—	—		—		( 6,651 )		—		—		( 6,651 )




Balance, September 30, 2025	31,455,803	$	329	$	297,992	$	354,864	$	( 27,119 )	$	( 26,937 )	$	599,129

Balance, June 30, 2024	31,559,366	$	328	$	296,430	$	290,386	$	( 54,656 )	$	( 23,019 )	$	509,469

Net income	—	—		—		18,180		—		—		18,180
Other comprehensive income	—	—		—		—		15,667		—		15,667
Stock-based compensation	—	—		380		—		—		—		380



Cash dividends and dividend equivalents ($ 0.19 per share)	—	—		—		( 6,034 )		—		—		( 6,034 )




Balance, September 30, 2024	31,559,366	$	328	$	296,810	$	302,532	$	( 38,989 )	$	( 23,019 )	$	537,662

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (CONTINUED)
(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	—	—		—		58,070		—		—		58,070
Other comprehensive income	—	—		—		—		19,646		—		19,646
Stock-based compensation	—	—		1,387		—		—		—		1,387
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	72,065	1		( 692 )		—		—		—		( 691 )

Repurchase of common stock	( 175,628 )	—		—		—		—		( 3,918 )		( 3,918 )
Cash dividends and dividend equivalents ($ 0.63 per share)	—	—		—		( 19,970 )		—		—		( 19,970 )




Balance, September 30, 2025	31,455,803	$	329	$	297,992	$	354,864	$	( 27,119 )	$	( 26,937 )	$	599,129

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	—	—		—		51,508		—		—		51,508
Other comprehensive income	—	—		—		—		18,174		—		18,174
Stock-based compensation	—	—		1,265		—		—		—		1,265
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	96,341	1		( 332 )		—		—		—		( 331 )

Repurchase of common stock	( 232,803 )	—		—		—		—		( 4,423 )		( 4,423 )
Cash dividends and dividend equivalents ($ 0.57 per share)	—	—		—		( 18,143 )		—		—		( 18,143 )




Balance, September 30, 2024	31,559,366	$	328	$	296,810	$	302,532	$	( 38,989 )	$	( 23,019 )	$	537,662

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


	Nine Months Ended September 30,
(dollars in thousands)	2025		2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	58,070	$	51,508
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	2,347		2,207
Provision for credit losses	1,698		2,306
Net amortization of debt securities	1,859		2,886
Deferred income tax expense	725		361
Stock-based compensation	1,387		1,265
Net accretion of discount and deferred loan fees on loans	( 5,473 )		( 5,497 )
Net realized loss on sales of securities	49		3,382
Net unrealized loss (gain) on equity securities	36		( 24 )
Net loss on disposals of bank premises and equipment	90		57
Net gain on sales of bank premises held for sale	( 52 )		—
Impairment losses on bank premises held for sale	50		580
Net gain on sales of foreclosed assets	( 224 )		( 105 )
Write-down of foreclosed assets	49		90
Amortization of intangibles	2,083		2,130
Decrease in fair value of mortgage servicing rights	1,573		1,505
Net loss on extinguishment of subordinated debt	391		—
Amortization of discount and issuance costs on subordinated notes and debentures	101		104
Amortization of discount on Federal Home Loan Bank advances	128		305

Amortization of premium on time deposits	—		( 86 )
Mortgage loans originated for sale	( 36,348 )		( 46,706 )
Proceeds from sale of mortgage loans	37,603		47,267
Net gain on sale of mortgage loans	( 1,101 )		( 1,202 )
Increase in cash surrender value of bank owned life insurance	( 500 )		( 500 )

Decrease in accrued interest receivable	1,195		374
Decrease in other assets	219		5,003
Increase (decrease) in other liabilities	( 4,788 )		4,879
Net cash provided by operating activities	61,167		72,089

See accompanying Notes to Consolidated Financial Statements (Unaudited)

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HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)


	Nine Months Ended September 30,
(dollars in thousands)	2025		2024

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of interest-bearing time deposits with banks	—		520
Purchase of interest-bearing time deposits with banks	—		( 11 )
Proceeds from sales of debt securities	1,276		66,812
Proceeds from sales and redemptions of equity securities	54		58
Proceeds from paydowns, maturities, and calls of debt securities	128,291		85,208
Purchase of debt securities	( 166,907 )		( 67,286 )
Purchase of equity securities	( 34 )		( 171 )
Purchase of loans	( 9,782 )		( 4,448 )
Net decrease in loans	78,157		42,815

Proceeds from redemption of restricted stock	107		2,074

Purchases of bank premises and equipment	( 5,657 )		( 3,930 )
Proceeds from sales of bank premises and equipment	13		—
Proceeds from sales of bank premises held for sale	319		—
Proceeds from sales of foreclosed assets	1,140		1,143


Net cash provided by investing activities	26,977		122,784

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	28,933		( 120,651 )
Net decrease in repurchase agreements	( 28,969 )		( 13,413 )

Proceeds from long-term Federal Home Loan Bank advances	1,800		907
Repayment of long-term Federal Home Loan Bank advances	( 7,888 )		( 400 )
Repayment of subordinated notes	( 40,000 )		—
Taxes paid related to the vesting of restricted stock units	( 691 )		( 331 )
Repurchase of common stock	( 3,918 )		( 4,423 )
Cash dividends and dividend equivalents paid	( 19,970 )		( 18,143 )
Net cash used in financing activities	( 70,703 )		( 156,454 )

NET INCREASE IN CASH AND CASH EQUIVALENTS	17,441		38,419
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	137,692		141,252
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	155,133	$	179,671

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	44,191	$	47,745
Net cash paid for income taxes	$	21,040	$	17,326

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	$	1,605	$	652

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

See accompanying Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

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.

Recent Legislation

On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic research and development expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. This legislation is not expected to have a material impact on the Company's consolidated results of operations or financial position.

Table of Contents

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.

NOTE 2 – BUSINESS COMBINATIONS

CNB Bank Shares, Inc.

On October 20, 2025, HBT Financial and CNB Bank Shares, Inc. ("CNBN"), the holding company for CNB Bank & Trust, N.A. ("CNB Bank"), jointly announced the signing of a merger agreement pursuant to which HBT Financial will acquire CNBN and CNB Bank. The combined company will have increased density in the central Illinois, Chicago MSA, and St. Louis MSA markets.

Under the terms of the merger agreement, total consideration consists of approximately 5.5 million shares of HBT Financial's common stock and $ 33.8 million in cash. CNBN shareholders may elect to receive either (i) 1.0434 shares of HBT Financial's common stock for each share of CNBN, or (ii) $ 27.73 per share in cash, or (iii) a combination of cash and stock consideration, subject to adjustment and to the election and proration provisions in the merger agreement. Upon closing the transaction, shareholders of CNBN are expected to hold approximately 15 % of HBT Financial's outstanding common stock.

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, approval of CNBN shareholders, and regulatory approvals. There were no significant acquisition expenses related to the planned acquisition of CNBN during the three and nine months ended September 30, 2025 and 2024.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 3 – 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:


	September 30, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	99,759	$	—	$	( 4,946 )	$	—	$	94,813
U.S. government agency	51,930		147		( 1,334 )		—		50,743
Municipal	149,723		165		( 13,436 )		—		136,452
Mortgage-backed:
Agency residential	324,957		3,099		( 8,410 )		—		319,646
Agency commercial	133,797		53		( 8,143 )		—		125,707

Corporate	67,565		642		( 1,838 )		—		66,369
Total available-for-sale	$	827,731	$	4,106	$	( 38,107 )	$	—	$	793,730

	September 30, 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	$	88,489	$	—	$	( 5,340 )	$	83,149	$	—
Municipal	30,599		389		( 83 )		30,905		—
Mortgage-backed:
Agency residential	78,233		11		( 3,030 )		75,214		—
Agency commercial	269,244		23		( 27,042 )		242,225		—
Total held-to-maturity	$	466,565	$	423	$	( 35,495 )	$	431,493	$	—

Table of Contents

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 September 30, 2025 and December 31, 2024, the Bank had debt securities with a carrying value of $ 515.6 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 September 30, 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	$	36,083	$	35,875	$	7,998	$	7,895
Due after 1 year through 5 years	181,704		172,003		54,356		52,911
Due after 5 years through 10 years	127,320		118,397		54,797		51,375
Due after 10 years	23,870		22,102		1,937		1,873

Mortgage-backed:
Agency residential	324,957		319,646		78,233		75,214
Agency commercial	133,797		125,707		269,244		242,225
Total	$	827,731	$	793,730	$	466,565	$	431,493

Table of Contents

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 September 30, 2025 and December 31, 2024, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	September 30, 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	$	—	$	—	$	( 4,946 )	$	94,813	$	( 4,946 )	$	94,813
U.S. government agency	( 20 )		2,953		( 1,314 )		40,068		( 1,334 )		43,021
Municipal	( 42 )		2,010		( 13,394 )		127,231		( 13,436 )		129,241
Mortgage-backed:
Agency residential	( 170 )		20,124		( 8,240 )		124,013		( 8,410 )		144,137
Agency commercial	( 158 )		14,114		( 7,985 )		105,305		( 8,143 )		119,419
Corporate	( 14 )		3,804		( 1,824 )		27,152		( 1,838 )		30,956
Total available-for-sale	$	( 404 )	$	43,005	$	( 37,703 )	$	518,582	$	( 38,107 )	$	561,587


	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 September 30, 2025, there were 564 debt securities in an unrealized loss position for a period of twelve months or more, and 28 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.

Table of Contents

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 76 % of the total fair value of our municipal securities portfolio as of September 30, 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 municipal securities were 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 September 30, 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 $ 5.3 million and $ 5.1 million as of September 30, 2025 and December 31, 2024, respectively.

Sales of debt securities were as follows during the three and nine months ended September 30:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Proceeds from sales	$	1,276	$	—	$	1,276	$	66,812
Gross realized gains	—		—		—		—
Gross realized losses	( 49 )		—		( 49 )		( 3,382 )

Table of Contents

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:


	September 30, 2025
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,978
Cumulative net unrealized gains (losses)	155		( 369 )
Carrying value	$	3,279	$	2,609


	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 September 30, 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 and nine months ended September 30, 2025 and 2024:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Readily determinable fair value	$	( 67 )	$	136	$	( 36 )	$	24
No readily determinable fair value	—		—		—		—
Unrealized gains (losses) on equity securities	$	( 67 )	$	136	$	( 36 )	$	24

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 4 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Major categories of loans are summarized as follows:


(dollars in thousands)	September 30, 2025		December 31, 2024

Commercial and industrial	$	395,859	$	428,389
Commercial real estate - owner occupied	312,192		322,316
Commercial real estate - non-owner occupied	931,723		899,565
Construction and land development	269,924		374,657
Multi-family	514,801		431,524
One-to-four family residential	443,215		463,968
Agricultural and farmland	280,309		293,375
Municipal, consumer, and other	252,006		252,352
Loans, before allowance for credit losses	3,400,029		3,466,146
Allowance for credit losses	( 41,900 )		( 42,044 )
Loans, net of allowance for credit losses	$	3,358,129	$	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 September 30, 2025, the economic forecast used by management anticipates a mild slowdown for the fourth quarter of 2025 followed by a gradual increase in economic activity over the remainder of the four quarter forecast period. The forecast has the unemployment rate increasing slightly during the fourth quarter of 2025 then decreasing slightly in 2026, while gross domestic product ("GDP") growth slows during the fourth quarter of 2025 and then increases in 2026. 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 September 30, 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	$	6,310	$	3,311	$	11,635	$	3,450	$	4,554	$	3,677	$	1,558	$	7,164	$	41,659

Provision for credit losses	110		342		212		( 604 )		272		( 117 )		( 151 )		311		375
Charge-offs	( 398 )		( 114 )		—		—		—		( 31 )		( 15 )		( 165 )		( 723 )
Recoveries	459		3		—		—		—		57		11		59		589
Ending balance	$	6,481	$	3,542	$	11,847	$	2,846	$	4,826	$	3,586	$	1,403	$	7,369	$	41,900

	Three Months Ended September 30, 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	$	4,761	$	2,191	$	9,816	$	6,155	$	3,712	$	4,785	$	1,059	$	8,327	$	40,806

Provision for credit losses	980		36		( 598 )		423		78		26		226		( 425 )		746
Charge-offs	( 734 )		( 6 )		—		—		—		( 125 )		—		( 236 )		( 1,101 )
Recoveries	27		10		329		—		—		44		2		103		515
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	Nine Months Ended September 30, 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	2,002		514		140		( 1,452 )		538		82		190		( 548 )		1,466
Charge-offs	( 1,442 )		( 115 )		—		( 8 )		( 43 )		( 548 )		( 24 )		( 460 )		( 2,640 )
Recoveries	564		36		—		4		—		144		67		215		1,030
Ending balance	$	6,481	$	3,542	$	11,847	$	2,846	$	4,826	$	3,586	$	1,403	$	7,369	$	41,900

	Nine Months Ended September 30, 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	1,219		( 49 )		1,247		578		141		( 470 )		302		( 985 )		1,983
Charge-offs	( 1,242 )		( 6 )		—		—		( 188 )		( 200 )		—		( 562 )		( 2,198 )
Recoveries	77		14		586		2		—		196		10		248		1,133
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

Table of Contents

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 September 30, 2025 and 2024.


	Gross Charge-Offs for the Three Months Ended September 30, 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	$	12	$	1	$	172	$	189	$	—	$	—	$	24	$	—	$	398
Commercial real estate - owner occupied	—		—		114		—		—		—		—		—		114
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		31		—		—		—		—		31
Agricultural and farmland	—		—		—		—		—		—		15		—		15
Municipal, consumer, and other	86		5		—		—		—		—		74		—		165
Total	$	98	$	6	$	286	$	220	$	—	$	—	$	113	$	—	$	723

	Gross Charge-Offs for the Three Months Ended September 30, 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	$	—	$	734	$	—	$	—	$	—	$	—	$	—	$	—	$	734
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		1		—		—		124		—		—		125
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	154		3		5		—		—		—		74		—		236
Total	$	160	$	737	$	6	$	—	$	—	$	124	$	74	$	—	$	1,101

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Gross charge-offs, further sorted by origination year, were as follows during the nine months ended September 30, 2025 and 2024.


	Gross Charge-Offs for the Nine Months Ended September 30, 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	$	12	$	1	$	696	$	195	$	46	$	—	$	492	$	—	$	1,442
Commercial real estate - owner occupied	—		—		114		—		1		—		—		—		115
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		2		—		2		—		4		—		—		8
Multi-family	—		43		—		—		—		—		—		—		43
One-to-four family residential	—		20		—		45		—		480		3		—		548
Agricultural and farmland	—		9		—		—		—		—		15		—		24
Municipal, consumer, and other	242		71		2		—		—		—		145		—		460
Total	$	254	$	146	$	812	$	242	$	47	$	484	$	655	$	—	$	2,640

	Gross Charge-Offs for the Nine Months Ended September 30, 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	$	—	$	1,063	$	75	$	—	$	—	$	11	$	93	$	—	$	1,242
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		188		—		—		—		—		188
One-to-four family residential	—		—		8		13		4		131		44		—		200
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	282		59		11		—		—		—		210		—		562
Total	$	288	$	1,122	$	94	$	201	$	4	$	142	$	347	$	—	$	2,198

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:


	September 30, 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	$	393,876	$	310,943	$	919,019	$	269,924	$	514,763	$	440,058	$	279,140	$	238,180	$	3,365,903
Individually evaluated for impairment	1,983		1,249		12,704		—		38		3,157		1,169		13,826		34,126
Total	$	395,859	$	312,192	$	931,723	$	269,924	$	514,801	$	443,215	$	280,309	$	252,006	$	3,400,029

Allowance for credit losses:
Collectively evaluated for impairment	$	5,875	$	3,239	$	11,401	$	2,846	$	4,788	$	3,586	$	1,403	$	5,800	$	38,938
Individually evaluated for impairment	606		303		446		—		38		—		—		1,569		2,962
Total	$	6,481	$	3,542	$	11,847	$	2,846	$	4,826	$	3,586	$	1,403	$	7,369	$	41,900

	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

Table of Contents

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:


	September 30, 2025
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	530	$	1,453	$	1,983	$	606
Commercial real estate - owner occupied	1,249		—		—		1,249		303
Commercial real estate - non-owner occupied	12,704		—		—		12,704		446
Construction and land development	—		—		—		—		—
Multi-family	38		—		—		38		38
One-to-four family residential	3,157		—		—		3,157		—
Agricultural and farmland	736		—		433		1,169		—
Municipal, consumer, and other	9,882		—		3,944		13,826		1,569
Total	$	27,766	$	530	$	5,830	$	34,126	$	2,962

	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 $ 18.1 million and $ 19.6 million as of September 30, 2025 and December 31, 2024, respectively.

Table of Contents

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:


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

Commercial and industrial	$	393,129	$	747	$	—	$	1,983	$	395,859
Commercial real estate - owner occupied	309,156		1,787		—		1,249		312,192
Commercial real estate - non-owner occupied	931,380		311		—		32		931,723
Construction and land development	269,924		—		—		—		269,924
Multi-family	514,763		—		—		38		514,801
One-to-four family residential	439,260		798		—		3,157		443,215
Agricultural and farmland	279,066		74		—		1,169		280,309
Municipal, consumer, and other	251,837		155		5		9		252,006
Total	$	3,388,515	$	3,872	$	5	$	7,637	$	3,400,029


	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:


	September 30, 2025
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	1,200	$	783	$	1,983
Commercial real estate - owner occupied	454		795		1,249
Commercial real estate - non-owner occupied	—		32		32
Construction and land development	—		—		—
Multi-family	38		—		38
One-to-four family residential	—		3,157		3,157
Agricultural and farmland	—		1,169		1,169
Municipal, consumer, and other	—		9		9
Total	$	1,692	$	5,945	$	7,637

	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. During these 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. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. 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 September 30, 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:


	September 30, 2025
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	364,841	$	21,376	$	4,117	$	5,525	$	395,859
Commercial real estate - owner occupied	286,103		14,718		4,112		7,259		312,192
Commercial real estate - non-owner occupied	876,934		26,999		268		27,522		931,723
Construction and land development	259,875		1,243		—		8,806		269,924
Multi-family	514,164		599		—		38		514,801
One-to-four family residential	429,459		6,689		912		6,155		443,215
Agricultural and farmland	246,433		17,245		5,681		10,950		280,309
Municipal, consumer, and other	237,305		863		—		13,838		252,006
Total	$	3,215,114	$	89,732	$	15,090	$	80,093	$	3,400,029


	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 September 30, 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	$	39,870	$	51,810	$	43,806	$	35,614	$	8,797	$	17,320	$	165,297	$	2,327	$	364,841
Pass-Watch	460		153		1,250		190		890		174		17,914		345		21,376
Special Mention	—		—		—		—		—		—		4,117		—		4,117
Substandard	226		506		939		1,137		130		722		503		1,362		5,525
Total	$	40,556	$	52,469	$	45,995	$	36,941	$	9,817	$	18,216	$	187,831	$	4,034	$	395,859

Commercial real estate - owner occupied
Pass	$	39,894	$	58,444	$	22,452	$	47,997	$	45,191	$	61,428	$	10,146	$	551	$	286,103
Pass-Watch	272		1,483		204		2,308		1,909		1,275		7,267		—		14,718
Special Mention	—		1,732		—		1,164		—		—		1,216		—		4,112
Substandard	2,085		782		260		782		1,146		716		1,423		65		7,259
Total	$	42,251	$	62,441	$	22,916	$	52,251	$	48,246	$	63,419	$	20,052	$	616	$	312,192

Commercial real estate - non-owner occupied
Pass	$	156,569	$	84,892	$	99,663	$	198,497	$	210,085	$	103,551	$	22,241	$	1,436	$	876,934
Pass-Watch	8,513		321		400		1,706		2,920		12,511		628		—		26,999
Special Mention	—		—		—		—		268		—		—		—		268
Substandard	19,891		5,441		198		—		—		1,992		—		—		27,522
Total	$	184,973	$	90,654	$	100,261	$	200,203	$	213,273	$	118,054	$	22,869	$	1,436	$	931,723

Construction and land development
Pass	$	123,346	$	84,892	$	24,951	$	1,501	$	12,922	$	1,032	$	10,996	$	235	$	259,875
Pass-Watch	18		246		—		—		—		16		963		—		1,243
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		8,756		—		50		—		—		8,806
Total	$	123,364	$	85,138	$	24,951	$	10,257	$	12,922	$	1,098	$	11,959	$	235	$	269,924

Multi-family
Pass	$	82,488	$	78,820	$	91,823	$	106,536	$	81,973	$	70,177	$	1,298	$	1,049	$	514,164
Pass-Watch	—		—		17		—		582		—		—		—		599
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		38		—		—		—		—		—		—		38
Total	$	82,488	$	78,858	$	91,840	$	106,536	$	82,555	$	70,177	$	1,298	$	1,049	$	514,801

One-to-four family residential
Pass	$	56,482	$	28,649	$	69,499	$	70,458	$	60,668	$	77,874	$	58,881	$	6,948	$	429,459
Pass-Watch	112		290		1,377		899		1,036		2,437		268		270		6,689
Special Mention	—		—		—		912		—		—		—		—		912
Substandard	386		107		393		358		326		4,340		22		223		6,155
Total	$	56,980	$	29,046	$	71,269	$	72,627	$	62,030	$	84,651	$	59,171	$	7,441	$	443,215

Agricultural and farmland
Pass	$	38,434	$	29,295	$	28,591	$	17,037	$	25,846	$	21,475	$	84,074	$	1,681	$	246,433
Pass-Watch	2,384		538		1,157		3,232		975		806		7,057		1,096		17,245
Special Mention	1,811		—		1,655		—		5		—		2,210		—		5,681
Substandard	1,328		330		677		1,819		905		3,094		2,157		640		10,950
Total	$	43,957	$	30,163	$	32,080	$	22,088	$	27,731	$	25,375	$	95,498	$	3,417	$	280,309

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	$	57,421	$	21,035	$	17,860	$	18,005	$	22,598	$	45,837	$	54,549	$	—	$	237,305
Pass-Watch	18		98		9		—		1		735		2		—		863
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	4		3		3		3		7		13,817		1		—		13,838
Total	$	57,443	$	21,136	$	17,872	$	18,008	$	22,606	$	60,389	$	54,552	$	—	$	252,006

Total by risk rating
Pass	$	594,504	$	437,837	$	398,645	$	495,645	$	468,080	$	398,694	$	407,482	$	14,227	$	3,215,114
Pass-Watch	11,777		3,129		4,414		8,335		8,313		17,954		34,099		1,711		89,732
Special Mention	1,811		1,732		1,655		2,076		273		—		7,543		—		15,090
Substandard	23,920		7,207		2,470		12,855		2,514		24,731		4,106		2,290		80,093
Total	$	632,012	$	449,905	$	407,184	$	518,911	$	479,180	$	441,379	$	453,230	$	18,228	$	3,400,029

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

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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 and nine months ended September 30, 2025 and 2024. As of September 30, 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 September 30, 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 5 – LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $ 1.45 billion and $ 1.55 billion as of September 30, 2025 and December 31, 2024, respectively. Activity in mortgage servicing rights was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Beginning balance	$	17,768	$	18,984	$	18,827	$	19,001

Capitalized servicing rights	163		198		442		538
Fair value adjustments attributable to payments and principal reductions	( 558 )		( 598 )		( 1,579 )		( 1,569 )
Fair value adjustments attributable to changes in valuation inputs and assumptions	( 119 )		( 1,088 )		( 436 )		( 474 )
Ending balance	$	17,254	$	17,496	$	17,254	$	17,496

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 6 – FORECLOSED ASSETS

Foreclosed assets activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Beginning balance	$	890	$	320	$	367	$	852

Transfers from loans	640		278		1,605		652

Proceeds from sales	( 671 )		( 178 )		( 1,140 )		( 1,143 )

Net gain on sales	183		10		224		105
Direct write-downs	( 35 )		( 54 )		( 49 )		( 90 )
Ending balance	$	1,007	$	376	$	1,007	$	376

Gains (losses) on foreclosed assets included the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Direct write-downs	$	( 35 )	$	( 54 )	$	( 49 )	$	( 90 )
Net gain on sales	183		10		224		105
Gains (losses) on foreclosed assets	$	148	$	( 44 )	$	175	$	15

As of September 30, 2025 and December 31, 2024, the carrying value of foreclosed one-to-four family residential real estate properties held was $ 0.7 million and $ 0.3 million, respectively. As of September 30, 2025, there were 3 one-to-four family residential real estate loans in the process of foreclosure totaling $ 0.4 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 7 – DEPOSITS

The Company’s deposits are summarized below:


(dollars in thousands)	September 30, 2025		December 31, 2024

Noninterest-bearing deposits	$	1,034,181	$	1,046,405
Interest-bearing deposits:
Interest-bearing demand	1,102,815		1,099,061
Money market	883,327		820,825
Savings	562,149		566,533
Time	764,715		785,430

Total interest-bearing deposits	3,313,006		3,271,849
Total deposits	$	4,347,187	$	4,318,254

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $ 315.4 million and $ 229.4 million as of September 30, 2025 and December 31, 2024, respectively. There were no brokered deposits as of September 30, 2025 and December 31, 2024.

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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 $ 200.1 million and $ 202.2 million as of September 30, 2025 and December 31, 2024, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $ 443.9 million and $ 455.2 million as of September 30, 2025 and December 31, 2024, respectively.

The components of interest expense on deposits were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Interest-bearing demand	$	1,676	$	1,408	$	4,698	$	4,148
Money market	4,638		4,726		13,498		14,193
Savings	399		396		1,143		1,232
Time	6,282		7,702		19,430		20,744
Brokered	—		417		—		2,058
Total interest expense on deposits	$	12,995	$	14,649	$	38,769	$	42,375

NOTE 8 – 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:


	September 30, 2025				December 31, 2024
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	—	$	—	$	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)				Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	—	$	55	$	38	$	305

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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:


	September 30, 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	$	6,382	$	103	$	—	$	—
Interest rate swaps with a financial institution counterparty	74,224		3,073		79,416		5,515
Total fair value recorded in other assets	$	80,606	$	3,176	$	79,416	$	5,515

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	74,224	$	( 3,073 )	$	79,416	$	( 5,515 )
Interest rate swaps with a financial institution counterparty	6,382		( 103 )		—		—
Total fair value recorded in other liabilities	$	80,606	$	( 3,176 )	$	79,416	$	( 5,515 )

As of September 30, 2025, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2040.

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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Not designated as hedging instruments:
Gross gains	$	867	$	5,554	$	3,852	$	8,375
Gross losses	( 867 )		( 5,554 )		( 3,852 )		( 8,375 )
Net gains (losses)	$	—	$	—	$	—	$	—

Table of Contents

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)	September 30, 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 9 – 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 September 30, 2025
Balance, June 30, 2025	$	( 26,336 )	$	( 6,403 )	$	—	$	( 32,739 )
Other comprehensive income before reclassifications	7,239		—		—		7,239
Reclassifications	49		518		—		567
Other comprehensive income, before tax	7,288		518		—		7,806
Income tax expense	2,042		144		—		2,186
Other comprehensive income, after tax	5,246		374		—		5,620
Balance, September 30, 2025	$	( 21,090 )	$	( 6,029 )	$	—	$	( 27,119 )

Three Months Ended September 30, 2024
Balance, June 30, 2024	$	( 46,658 )	$	( 7,841 )	$	( 157 )	$	( 54,656 )

Other comprehensive income (loss) before reclassifications	21,334		—		( 24 )		21,310
Reclassifications	—		506		( 55 )		451
Other comprehensive income (loss), before tax	21,334		506		( 79 )		21,761
Income tax expense (benefit)	5,974		142		( 22 )		6,094
Other comprehensive income (loss), after tax	15,360		364		( 57 )		15,667
Balance, September 30, 2024	$	( 31,298 )	$	( 7,477 )	$	( 214 )	$	( 38,989 )

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


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

Nine Months Ended September 30, 2025
Balance, December 31, 2024	$	( 39,408 )	$	( 7,119 )	$	( 238 )	$	( 46,765 )
Other comprehensive income before reclassifications	25,393		—		—		25,393
Reclassifications	49		1,514		( 38 )		1,525
Other comprehensive income (loss), before tax	25,442		1,514		( 38 )		26,918
Income tax expense (benefit)	7,124		424		( 276 )		7,272
Other comprehensive income, after tax	18,318		1,090		238		19,646
Balance, September 30, 2025	$	( 21,090 )	$	( 6,029 )	$	—	$	( 27,119 )

Nine Months Ended September 30, 2024
Balance, December 31, 2023	$	( 48,579 )	$	( 8,549 )	$	( 35 )	$	( 57,163 )

Other comprehensive income before reclassifications	20,603		—		54		20,657
Reclassifications	3,382		1,495		( 305 )		4,572
Other comprehensive income (loss), before tax	23,985		1,495		( 251 )		25,229
Income tax expense (benefit)	6,704		423		( 72 )		7,055
Other comprehensive income (loss), after tax	17,281		1,072		( 179 )		18,174
Balance, September 30, 2024	$	( 31,298 )	$	( 7,477 )	$	( 214 )	$	( 38,989 )

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.

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 8 for additional information.

Table of Contents

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 10 – 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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Numerator:
Net income	$	19,765	$	18,180	$	58,070	$	51,508



Denominator:
Weighted average common shares outstanding	31,481,135		31,559,366		31,525,247		31,600,442
Dilutive effect of outstanding restricted stock units	106,800		118,180		103,682		115,266
Weighted average common shares outstanding, including all dilutive potential shares	31,587,935		31,677,546		31,628,929		31,715,708

Earnings per share - basic	$	0.63	$	0.58	$	1.84	$	1.63
Earnings per share - diluted	$	0.63	$	0.57	$	1.84	$	1.62

NOTE 11 – 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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Restricted stock units	$	310	$	263	$	888	$	798
Performance restricted stock units	203		117		499		467
Total awards classified as equity	513		380		1,387		1,265
Stock appreciation rights	( 2 )		64		136		5
Total stock-based compensation expense	$	511	$	444	$	1,523	$	1,270

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 accrued until vested, are classified as dividends charged to retained earnings.

During the nine months ended September 30, 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 nine months ended September 30, 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 September 30,
	2025			2024
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	94,947	$	22.20	108,865	$	19.71
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		( 131 )	19.06
Ending balance	94,947	$	22.20	108,734	$	19.71

	Nine Months Ended September 30,
	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		( 131 )	19.06
Ending balance	94,947	$	22.20	108,734	$	19.71

As of September 30, 2025, unrecognized compensation cost related to the non-vested restricted stock units was $ 1.1 million. This cost is expected to be recognized over the weighted average remaining service period of 1.5 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 nine months ended September 30, 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 nine months ended September 30, 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 September 30,
	2025			2024
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	53,625	$	22.07	70,333	$	19.59
Granted	—	—		—	—
Adjustment for performance condition	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	53,625	$	22.07	70,333	$	19.59

	Nine Months Ended September 30,
	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 September 30, 2025, unrecognized compensation cost related to non-vested performance restricted stock units was $ 0.4 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 1.0 year.

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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 September 30,
	2025			2024
	Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value
Beginning balance	67,320	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	67,320	$	16.32	73,440	$	16.32

	Nine Months Ended September 30,
	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 September 30, 2025, all stock appreciation rights were exercisable and had a weighted average remaining term of 3.9 years. There was no unrecognized compensation cost for stock appreciation rights as of September 30, 2025.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

As of September 30, 2025 and December 31, 2024, the liability recorded for outstanding stock appreciation rights was $ 0.6 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.


	September 30, 2025		December 31, 2024
Risk-free interest rate	3.69	%	4.37	%
Expected volatility	29.50	%	30.95	%
Expected life (in years)	3.9		4.7
Expected dividend yield	3.33	%	3.47	%

NOTE 12 – 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 September 30, 2025 and December 31, 2024, the Company and the Bank each met all capital adequacy requirements to which they were subject.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

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


	September 30, 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)	$	650,579	16.77	%	$	310,429	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	607,963		15.67		232,821		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	556,683		14.35		174,616		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	607,963		12.16		199,931		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	639,469	16.49	%	$	310,147	8.00	%	$	387,684	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	596,853		15.40		232,610		6.00		310,147		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	596,853		15.40		174,458		4.50		251,994		6.50
Tier 1 Capital (to Average Assets)	596,853		11.95		199,820		4.00		249,775		5.00


	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

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 13 – 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 14 – 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.

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.

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

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.

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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 September 30, 2025 and December 31, 2024 by level within the fair value hierarchy:


	September 30, 2025
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	—	$	94,813	$	—	$	94,813
U.S. government agency	—		50,743		—		50,743
Municipal	—		136,452		—		136,452
Mortgage-backed:
Agency residential	—		319,646		—		319,646
Agency commercial	—		125,707		—		125,707
Corporate	—		66,369		—		66,369
Equity securities with readily determinable fair values	3,279		—		—		3,279
Mortgage servicing rights	—		—		17,254		17,254
Derivative financial assets	—		3,176		—		3,176
Derivative financial liabilities	—		3,186		—		3,186


	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

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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):

September 30, 2025

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

17,254

Discounted cash flows

Constant pre-payment rates (CPR)

4.9 % to 94.3 % ( 8.2 %)

Discount rate

9.0 % to 92.2 % ( 9.5 %)

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 bank premises held for sale 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 foreclosed assets have been classified as Level 3.

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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 September 30, 2025 and December 31, 2024 by level within the fair value hierarchy:


	September 30, 2025
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	1,432	$	—	$	1,432
Collateral-dependent loans	—		—		31,164		31,164

Foreclosed assets	—		—		1,007		1,007


	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):

September 30, 2025

Fair Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

31,164

Appraisal of collateral

Appraisal adjustments

Not meaningful

Foreclosed assets

1,007

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.

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

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HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

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 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	September 30, 2025				December 31, 2024
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	155,133	$	155,133	$	137,692	$	137,692
Debt securities held-to-maturity	Level 2	466,565		431,493		499,858		445,186
Restricted stock	Level 3	4,979		4,979		5,086		5,086
Loans, net	Level 3	3,358,129		3,314,510		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	23,575		23,575		24,770		24,770

Financial liabilities:
Time deposits	Level 3	764,715		760,928		785,430		779,997

Securities sold under agreements to repurchase	Level 2	—		—		28,969		28,969
FHLB advances	Level 3	7,271		6,542		13,231		13,159
Subordinated notes	Level 3	—		—		39,553		38,316
Junior subordinated debentures	Level 3	52,894		51,650		52,849		47,942
Accrued interest payable	Level 2	3,946		3,946		5,096		5,096

The Company estimated the fair value of lending related commitments as described in Note 15 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 15 – 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)	September 30, 2025		December 31, 2024

Commitments to extend credit	$	819,768	$	845,413
Standby letters of credit	31,028		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, 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 $ 3.3 million and $ 3.1 million as of September 30, 2025 and December 31, 2024, respectively.

Legal Contingencies

Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company's consolidated financial statements.

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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 September 30, 2025 (unaudited), as compared with December 31, 2024, and the results of operations for the three and nine months ended September 30, 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 and nine months ended September 30, 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 September 30, 2025, the Company had total assets of $5.0 billion, loans held for investment of $3.4 billion, and total deposits of $4.3 billion.

Market Area

As of September 30, 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:


	September 30, 2025				December 31, 2024
(dollars in thousands)	Loans		Deposits		Loans		Deposits

Central	$	1,567,112	$	2,974,679	$	1,676,842	$	2,984,820
Chicago MSA	1,482,861		1,263,226		1,443,777		1,218,098
Illinois	3,049,973		4,237,905		3,120,619		4,202,918
Iowa	350,056		109,282		345,527		115,336
Total	$	3,400,029	$	4,347,187	$	3,466,146	$	4,318,254

Pending CNB Bank Shares, Inc. Acquisition

On October 20, 2025, HBT Financial and CNB Bank Shares, Inc. ("CNBN"), the holding company for CNB Bank & Trust, N.A. ("CNB Bank"), jointly announced the signing of a merger agreement pursuant to which HBT Financial will acquire CNBN and CNB Bank. As of September 30, 2025, CNBN had totals assets of $1.8 billion, total loans of $1.3 billion, and total deposits of $1.5 billion. The combined company will have increased density in the central Illinois, Chicago MSA, and St. Louis MSA markets. The acquisition is expected to close in the first quarter of 2026, subject to CNBN shareholder approval, regulatory approvals, and other customary closing conditions.

Table of Contents

RESULTS OF OPERATIONS

Overview of Recent Financial Results


	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2025			2024			2025			2024

Total interest and dividend income	$	64,336		$	64,117		$	191,393		$	188,902
Total interest expense	14,350			16,384			43,041			47,453
Net interest income	49,986			47,733			148,352			141,449
Provision for credit losses	596			603			1,698			2,306
Net interest income after provision for credit losses	49,390			47,130			146,654			139,143
Total noninterest income	9,849			8,705			28,295			23,941
Total noninterest expense	32,508			31,322			96,357			93,099
Income before income tax expense	26,731			24,513			78,592			69,985
Income tax expense	6,966			6,333			20,522			18,477
Net income	$	19,765		$	18,180		$	58,070		$	51,508

Adjusted net income (1)	$	20,452		$	19,244		$	59,508		$	55,456



Pre-provision net revenue (1)	$	27,327		$	25,116		$	80,290		$	72,291
Pre-provision net revenue less net charge-offs (1)	27,193			24,530			78,680			71,226
Adjusted pre-provision net revenue (1)	28,288			26,604			82,301			77,813
Adjusted pre-provision net revenue less net charge-offs (1)	28,154			26,018			80,691			76,748

Share and Per Share Information
Earnings per share - diluted	$	0.63		$	0.57		$	1.84		$	1.62
Adjusted earnings per share - diluted (1)	0.65			0.61			1.88			1.75

Weighted average shares of common stock outstanding	31,481,135			31,559,366			31,525,247			31,600,442

Summary Ratios
Net interest margin *	4.13		%	3.98		%	4.13		%	3.96		%
Net interest margin (tax-equivalent basis) * (1) (2)	4.18			4.03			4.18			4.01
Yield on loans *	6.35			6.45			6.37			6.38
Yield on interest-earning assets *	5.32			5.35			5.33			5.29

Cost of total deposits *	1.19			1.35			1.20			1.31
Cost of funds *	1.29			1.47			1.30			1.42

Efficiency ratio	53.17		%	54.24		%	53.37		%	55.00		%
Efficiency ratio (tax-equivalent basis) (1) (2)	52.68			53.71			52.88			54.45
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)	51.55			52.35			52.18			52.71

Return on average assets *	1.56		%	1.44		%	1.54		%	1.37		%
Return on average stockholders' equity *	13.31			13.81			13.57			13.58
Return on average tangible common equity * (1)	15.28			16.25			15.66			16.11

Adjusted return on average assets * (1)	1.61		%	1.53		%	1.58		%	1.48		%
Adjusted return on average stockholders' equity * (1)	13.77			14.62			13.90			14.62
Adjusted return on average tangible common equity * (1)	15.81			17.20			16.05			17.34

_________________________________________________

* 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%.

Table of Contents

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

For the three months ended September 30, 2025, net income was $19.8 million, increasing by $1.6 million, or 8.7%, when compared to net income for the three months ended September 30, 2024. Notable changes include the following:

• A $2.3 million increase in net interest income, primarily attributable to lower funding costs and improved yields on debt securities which were partially offset by a decrease in loan yields;

• A $0.5 million negative mortgage servicing rights fair value adjustment included in the third quarter of 2025 results compared to a $1.5 million negative mortgage servicing rights fair value adjustment included in the third quarter 2024 results;

• A $0.4 million loss on the extinguishment of debt, associated with the early payoff of $40.0 million of subordinated notes in September 2025;

• A $0.6 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

For the nine months ended September 30, 2025, net income was $58.1 million, increasing by $6.6 million, or 12.7%, when compared to net income for the nine months ended September 30, 2024. Notable changes include the following:

• A $6.9 million increase in net interest income, primarily attributable to lower funding costs, higher yields on debt securities, and higher average loan balances;

• A $49 thousand loss on sales of securities during the nine months ended September 30, 2025 compared to a $3.4 million of loss on sales of securities during the same period in 2024;

• A $2.0 million increase in salaries and benefits expense, primarily driven by higher medical benefits expenses and annual merit increases;

• A $0.9 million increase in wealth management fees, primarily driven by higher values of assets under management;

• The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the nine months ended September 30, 2024;

• A $0.4 million loss on the extinguishment of debt, associated with the early payoff of $40.0 million of subordinated notes in September 2025; and

• A $2.0 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 tables set 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 as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.

Table of Contents


	Three Months Ended
	September 30, 2025						September 30, 2024
(dollars in thousands)	Average Balance		Interest		Yield/Cost *		Average Balance		Interest		Yield/Cost *

ASSETS
Loans	$	3,379,637	$	54,063	6.35	%	$	3,379,299	$	54,783	6.45	%
Debt securities	1,265,683		8,779		2.75		1,191,642		6,955		2.32
Deposits with banks	142,659		1,350		3.75		185,870		2,230		4.77
Other	12,540		144		4.51		12,660		149		4.68
Total interest-earning assets	4,800,519		$	64,336	5.32	%	4,769,471		$	64,117	5.35	%
Allowance for credit losses	(41,711)						(40,780)
Noninterest-earning assets	268,353						278,030
Total assets	$	5,027,161					$	5,006,721

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,113,391	$	1,676	0.60	%	$	1,085,609	$	1,408	0.52	%
Money market	833,812		4,638		2.21		800,651		4,726		2.35
Savings	568,001		399		0.28		573,077		396		0.27
Time	771,360		6,282		3.23		804,379		7,702		3.81
Brokered	—		—		—		29,996		417		5.54
Total interest-bearing deposits	3,286,564		12,995		1.57		3,293,712		14,649		1.77
Securities sold under agreements to repurchase	6		—		—		29,426		134		1.80
Borrowings	7,256		31		1.68		13,691		119		3.47
Subordinated notes	32,714		387		4.69		39,524		470		4.73
Junior subordinated debentures issued to capital trusts	52,887		937		7.04		52,827		1,012		7.63
Total interest-bearing liabilities	3,379,427		$	14,350	1.68	%	3,429,180		$	16,384	1.90	%
Noninterest-bearing deposits	1,028,608						1,013,893
Noninterest-bearing liabilities	30,050						39,903
Total liabilities	4,438,085						4,482,976
Stockholders' Equity	589,076						523,745
Total liabilities and stockholders’ equity	$	5,027,161					$	5,006,721

Net interest income/Net interest margin (1)			$	49,986	4.13	%			$	47,733	3.98	%
Tax-equivalent adjustment (2)			552		0.05				552		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)			$	50,538	4.18	%			$	48,285	4.03	%
Net interest rate spread (4)					3.64	%					3.45	%
Net interest-earning assets (5)	$	1,421,092					$	1,340,291
Ratio of interest-earning assets to interest-bearing liabilities	1.42						1.39
Cost of total deposits					1.19	%					1.35	%
Cost of funds					1.29						1.47

_________________________________________________

* 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.

Table of Contents


	Nine Months Ended
	September 30, 2025						September 30, 2024
(dollars in thousands)	Average Balance		Interest		Yield/Cost *		Average Balance		Interest		Yield/Cost *

ASSETS
Loans	$	3,419,077	$	162,971	6.37	%	$	3,374,875	$	161,077	6.38	%
Debt securities	1,229,388		24,075		2.62		1,197,772		20,592		2.30
Deposits with banks	141,216		3,959		3.75		188,087		6,752		4.80
Other	12,579		388		4.12		12,744		481		5.04
Total interest-earning assets	4,802,260		$	191,393	5.33	%	4,773,478		$	188,902	5.29	%
Allowance for credit losses	(41,962)						(40,611)
Noninterest-earning assets	271,193						279,789
Total assets	$	5,031,491					$	5,012,656

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,119,902	$	4,698	0.56	%	$	1,112,198	$	4,148	0.50	%
Money market	818,453		13,498		2.20		800,693		14,193		2.37
Savings	568,891		1,143		0.27		592,134		1,232		0.28
Time	778,618		19,430		3.34		744,349		20,744		3.72
Brokered	—		—		—		50,046		2,058		5.49
Total interest-bearing deposits	3,285,864		38,769		1.58		3,299,420		42,375		1.72
Securities sold under agreements to repurchase	3,361		22		0.89		30,769		415		1.80
Borrowings	9,103		170		2.49		13,387		365		3.64
Subordinated notes	37,261		1,326		4.76		39,504		1,409		4.76
Junior subordinated debentures issued to capital trusts	52,871		2,754		6.97		52,812		2,889		7.31
Total interest-bearing liabilities	3,388,460		$	43,041	1.70	%	3,435,892		$	47,453	1.84	%
Noninterest-bearing deposits	1,039,564						1,031,239
Noninterest-bearing liabilities	31,242						38,943
Total liabilities	4,459,266						4,506,074
Stockholders' Equity	572,225						506,582
Total liabilities and stockholders’ equity	$	5,031,491					$	5,012,656

Net interest income/Net interest margin (1)			$	148,352	4.13	%			$	141,449	3.96	%
Tax-equivalent adjustment (2)			1,645		0.05				1,680		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)			$	149,997	4.18	%			$	143,129	4.01	%
Net interest rate spread (4)					3.63	%					3.45	%
Net interest-earning assets (5)	$	1,413,800					$	1,337,586
Ratio of interest-earning assets to interest-bearing liabilities	1.42						1.39
Cost of total deposits					1.20	%					1.31	%
Cost of funds					1.30						1.42

_________________________________________________

* 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.

Table of Contents

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
(dollars in thousands)	Interest		Yield Contribution *		Interest		Yield Contribution *		Interest		Yield Contribution *		Interest		Yield Contribution *

Contractual interest	$	51,576	6.06	%	$	52,160	6.14	%	$	154,538	6.04	%	$	153,668	6.08	%
Loan fees	1,491		0.18		1,051		0.12		4,445		0.17		3,202		0.13
Accretion of acquired loan discounts	892		0.10		1,232		0.15		3,000		0.12		3,409		0.14
Nonaccrual interest recoveries	104		0.01		340		0.04		988		0.04		798		0.03
Total loan interest income	$	54,063	6.35	%	$	54,783	6.45	%	$	162,971	6.37	%	$	161,077	6.38	%

_________________________________________________

* Annualized measure.

Table of Contents

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
(dollars in thousands)	Interest		Net Interest Margin Contribution *		Interest		Net Interest Margin Contribution *		Interest		Net Interest Margin Contribution *		Interest		Net Interest Margin Contribution *

Interest income:
Contractual interest on loans	$	51,576	4.26	%	$	52,160	4.35	%	$	154,538	4.30	%	$	153,668	4.30	%
Loan fees	1,491		0.12		1,051		0.09		4,445		0.13		3,202		0.09
Accretion of acquired loan discounts	892		0.07		1,232		0.10		3,000		0.08		3,409		0.10
Nonaccrual interest recoveries	104		0.01		340		0.03		988		0.03		798		0.02
Debt securities	8,779		0.73		6,955		0.58		24,075		0.67		20,592		0.58
Interest-bearing deposits in bank	1,350		0.12		2,230		0.19		3,959		0.11		6,752		0.19
Other	144		0.01		149		0.01		388		0.01		481		0.01
Total interest income	64,336		5.32		64,117		5.35		191,393		5.33		188,902		5.29

Interest expense:
Deposits	12,995		1.08		14,649		1.22		38,769		1.08		42,375		1.19
Other interest-bearing liabilities	1,355		0.11		1,735		0.15		4,272		0.12		5,078		0.14
Total interest expense	14,350		1.19		16,384		1.37		43,041		1.20		47,453		1.33
Net interest income	49,986		4.13		47,733		3.98		148,352		4.13		141,449		3.96
Tax-equivalent adjustment (1)	552		0.05		552		0.05		1,645		0.05		1,680		0.05
Net interest income (tax-equivalent) (1) (2)	$	50,538	4.18	%	$	48,285	4.03	%	$	149,997	4.18	%	$	143,129	4.01	%

_________________________________________________

* 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 September 30, 2025 vs. Three Months Ended September 30, 2024						Nine Months Ended September 30, 2025 vs. Nine Months Ended September 30, 2024
	Increase (Decrease) Due to				Total		Increase (Decrease) Due to				Total
(dollars in thousands)	Volume		Rate				Volume		Rate

Interest-earning assets:
Loans	$	5	$	(725)	$	(720)	$	2,107	$	(213)	$	1,894
Debt securities	452		1,372		1,824		556		2,927		3,483
Deposits with banks	(461)		(419)		(880)		(1,486)		(1,307)		(2,793)
Other	(1)		(4)		(5)		(6)		(87)		(93)
Total interest-earning assets	(5)		224		219		1,171		1,320		2,491

Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	37		231		268		29		521		550
Money market	191		(279)		(88)		310		(1,005)		(695)
Savings	(4)		7		3		(48)		(41)		(89)
Time	(306)		(1,114)		(1,420)		925		(2,239)		(1,314)
Brokered	(417)		—		(417)		(2,058)		—		(2,058)
Total interest-bearing deposits	(499)		(1,155)		(1,654)		(842)		(2,764)		(3,606)
Securities sold under agreements to repurchase	(67)		(67)		(134)		(251)		(142)		(393)
Borrowings	(42)		(46)		(88)		(98)		(97)		(195)
Subordinated notes	(80)		(3)		(83)		(80)		(3)		(83)
Junior subordinated debentures issued to capital trusts	1		(76)		(75)		3		(138)		(135)
Total interest-bearing liabilities	(687)		(1,347)		(2,034)		(1,268)		(3,144)		(4,412)
Change in net interest income	$	682	$	1,571	$	2,253	$	2,439	$	4,464	$	6,903

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

Net interest income for the three months ended September 30, 2025 was $50.0 million, increasing $2.3 million, or 4.7%, when compared to the three months ended September 30, 2024. The increase is primarily attributable to lower funding costs and improved yields on debt securities which were partially offset by a decrease in loan yields. Additionally, a $0.4 million increase in loan fees was mostly offset by a $0.3 million decrease in acquired loan discount accretion.

Net interest margin increased to 4.13% for the three months ended September 30, 2025, compared to 3.98% for the three months ended September 30, 2024. The increase was primarily attributable to lower funding costs and higher yields on debt securities. Additionally, a 3 basis point increase in the contribution of loan fees to net interest margin was offset by a 3 basis point decrease in the contribution of acquired loan discount accretion to net interest margin when comparing each of the three months ended September 30, 2025 and 2024.

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Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Net interest income for the nine months ended September 30, 2025 was $148.4 million, increasing $6.9 million, or 4.9%, when compared to the nine months ended September 30, 2024. The increase is primarily attributable to lower funding costs, higher yields on debt securities, and higher average loan balances. Additionally, a $1.4 million increase in loan fees and nonaccrual interest recoveries was partially offset by a $0.4 million decrease in acquired loan discount accretion.

Net interest margin increased to 4.13% for the nine months ended September 30, 2025, compared to 3.96% for the nine months ended September 30, 2024. The increase was primarily attributable to a decrease in funding costs, higher yields on debt securities, and a favorable shift in the mix of interest-earning assets. Additionally, the increase in the contribution of loan fees and nonaccrual interest recoveries accounted for 5 basis points of the increase in net interest margin and were partially offset by a 2 basis point decrease in the contribution from acquired loan discount accretion.

The quarterly net interest margins were as follows:


	2025		2024
Three months ended:
March 31	4.12	%	3.94	%
June 30	4.14		3.95
September 30	4.13		3.98
December 31	—		3.96

In early 2024, our net interest margin was relatively stable, with increases in our loans and debt securities 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. In September 2025, the FOMC further reduced the target range for the federal funds rate by 25 basis points to a range of 4.00% to 4.25%. These changes have contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, driving our net interest margin higher during the first three quarters of 2025, relative to 2024.

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 both short-term and long-term 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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

PROVISION FOR CREDIT LOSSES
Loans	$	375	$	746	$	1,466	$	1,983
Unfunded lending-related commitments	221		(143)		232		323

Total provision for credit losses	$	596	$	603	$	1,698	$	2,306

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

The Company recorded a provision for credit losses of $0.6 million during the three months ended September 30, 2025, compared to a $0.6 million provision during the three months ended September 30, 2024. The third quarter of 2025 provision for credit losses primarily reflects a $1.2 million increase in required reserves driven by increased loan balances and changes within the portfolio; a $0.3 million increase in specific reserves; a $0.6 million decrease in required reserves resulting from changes in qualitative factors; and a $0.3 million decrease in required reserves driven by changes in the economic forecast.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

The Company recorded a provision for credit losses of $1.7 million for the nine months ended September 30, 2025, compared to a $2.3 million provision during the nine months ended September 30, 2024. The 2025 provision for credit losses primarily reflects a $1.1 million increase in required reserves resulting from changes in qualitative factors; a $0.7 million increase in required reserves resulting from changes in economic forecasts; a $0.1 million increase in required reserves driven by changes within the portfolio; and a $0.1 million decrease in specific reserves.

The provision for credit losses is 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.

Table of Contents

Noninterest Income

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


	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change

Card income	$	2,732	$	2,753	$	(21)	(0.8)	%	$	8,077	$	8,254	$	(177)	(2.1)	%
Wealth management fees	3,122		2,670		452		16.9		8,789		7,840		949		12.1
Service charges on deposit accounts	2,093		2,081		12		0.6		5,952		5,852		100		1.7
Mortgage servicing	1,019		1,113		(94)		(8.4)		3,051		3,279		(228)		(7.0)
Mortgage servicing rights fair value adjustment	(514)		(1,488)		974		NM		(1,573)		(1,505)		(68)		NM
Gains on sale of mortgage loans	390		461		(71)		(15.4)		1,101		1,202		(101)		(8.4)
Realized gains (losses) on sales of securities	(49)		—		(49)		NM		(49)		(3,382)		3,333		NM
Unrealized gains (losses) on equity securities	(67)		136		(203)		NM		(36)		24		(60)		NM
Gains (losses) on foreclosed assets	148		(44)		192		NM		175		15		160		1066.7
Gains (losses) on other assets	(14)		(2)		(12)		NM		(88)		(637)		549		NM
Income on bank owned life insurance	169		170		(1)		(0.6)		500		500		—		—
Other noninterest income	820		855		(35)		(4.1)		2,396		2,499		(103)		(4.1)
Total	$	9,849	$	8,705	$	1,144	13.1	%	$	28,295	$	23,941	$	4,354	18.2	%

_________________________________________________

NM Not meaningful.

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

Total noninterest income for the three months ended September 30, 2025, was $9.8 million, an increase of $1.1 million, or 13.1%, from the three months ended September 30, 2024. Notable changes in noninterest income include the following:

• A $0.5 million negative mortgage servicing rights fair value adjustment included the third quarter of 2025 results, primarily reflecting the net decrease in the servicing portfolio due to payments and principal reductions, compared to a $1.5 million negative mortgage servicing rights fair value adjustment included in the third quarter 2024 results;

• A $0.5 million increase in wealth management fees, driven by higher values of assets under management and an increase in agricultural real estate brokerage commissions; and

• A $0.1 million unrealized loss on equity securities included in the third quarter of 2025 results compared to a $0.1 million unrealized gain on equity securities included in the third quarter of 2024 results.

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Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Total noninterest income for the nine months ended September 30, 2025, was $28.3 million, an increase of $4.4 million, or 18.2%, from the nine months ended September 30, 2024. Notable changes in noninterest income include the following:

• A $49 thousand loss on sales of securities during the nine months ended September 30, 2025 compared to a $3.4 million of loss on sales of securities during the same period in 2024;

• A $0.9 million increase in wealth management fees, primarily driven by higher values of assets under management; and

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

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Noninterest Expense

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


	Three Months Ended September 30,								Nine Months Ended September 30,
(dollars in thousands)	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change

Salaries	$	16,351	$	16,325	$	26	0.2	%	$	49,856	$	49,346	$	510	1.0	%
Employee benefits	3,314		2,997		317		10.6		10,179		8,662		1,517		17.5
Occupancy of bank premises	2,826		2,695		131		4.9		7,922		7,520		402		5.3
Furniture and equipment	737		446		291		65.2		1,757		1,544		213		13.8
Data processing	2,791		2,640		151		5.7		8,195		8,171		24		0.3
Marketing and customer relations	1,035		1,380		(345)		(25.0)		3,199		3,372		(173)		(5.1)
Amortization of intangible assets	694		710		(16)		(2.3)		2,083		2,130		(47)		(2.2)
Loss on extinguishment of debt	391		—		391		NM		391		—		391		NM
FDIC insurance	561		572		(11)		(1.9)		1,674		1,697		(23)		(1.4)
Loan collection and servicing	264		476		(212)		(44.5)		1,007		1,403		(396)		(28.2)
Foreclosed assets	62		19		43		226.3		134		78		56		71.8
Other noninterest expense	3,482		3,062		420		13.7		9,960		9,176		784		8.5
Total	$	32,508	$	31,322	$	1,186	3.8	%	$	96,357	$	93,099	$	3,258	3.5	%

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

Total noninterest expense for the three months ended September 30, 2025, was $32.5 million, an increase of $1.2 million, or 3.8%, from the three months ended September 30, 2024. Notable changes in noninterest expense include the following:

• A $0.4 million loss on the extinguishment of debt associated with the early payoff of $40.0 million of subordinated notes in September 2025;

• A $0.3 million increase in benefits expense, primarily driven by higher medical benefits costs;

• A $0.3 million increase in furniture and equipment expense, primarily due to planned maintenance and upgrades; and

• A $0.2 million increase in data processing expense.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Total noninterest expense for the nine months ended September 30, 2025, was $96.4 million, an increase of $3.3 million, or 3.5%, from the nine months ended September 30, 2024. Notable changes in noninterest expense include the following:

• A $1.5 million increase in employee benefits expense, primarily driven by higher medical benefits cost;

• A $0.5 million increase in salaries expense, primarily driven by annual merit increases;

• A $0.4 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades; and

• A $0.4 million loss on the extinguishment of debt associated with the early payoff of $40.0 million of subordinated notes in September 2025.

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Income Taxes

During the three months ended September 30, 2025 and 2024, we recorded income tax expense of $7.0 million, or an effective tax rate of 26.1%, and $6.3 million, or an effective tax rate of 25.8%, respectively. During the nine months ended September 30, 2025 and 2024, we recorded income tax expense of $20.5 million, or an effective tax rate of 26.1%, and $18.5 million, or an effective tax rate of 26.4%, respectively.

The higher effective tax rate during the third quarter of 2025 was primarily attributable to a lower proportion of tax-exempt interest income to pre-tax income during 2025 relative to 2024. The higher effective tax rate during the nine months ended September 30, 2024 was primarily attributable to an additional $0.5 million of tax expense for a deferred tax asset write-down, recognized during the second quarter of 2024, as a result of an Illinois tax change. Additionally, $0.3 million of additional tax expense was recognized during the second quarter of 2025, related to the nonrecurring 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)	September 30, 2025			December 31, 2024			$ Change		% Change

Cash and cash equivalents	$	155,133		$	137,692		$	17,441	12.7	%
Debt securities available-for-sale, at fair value	793,730			698,049			95,681		13.7
Debt securities held-to-maturity	466,565			499,858			(33,293)		(6.7)
Loans held for sale	1,432			1,586			(154)		(9.7)

Loans, before allowance for credit losses	3,400,029			3,466,146			(66,117)		(1.9)
Less: allowance for credit losses	41,900			42,044			(144)		(0.3)
Loans, net of allowance for credit losses	3,358,129			3,424,102			(65,973)		(1.9)

Goodwill	59,820			59,820			—		—
Intangible assets, net	15,760			17,843			(2,083)		(11.7)
Other assets	184,458			193,952			(9,494)		(4.9)
Total assets	$	5,035,027		$	5,032,902		$	2,125	—	%

Total deposits	$	4,347,187		$	4,318,254		$	28,933	0.7	%
Securities sold under agreements to repurchase	—			28,969			(28,969)		(100.0)
Borrowings	7,271			13,231			(5,960)		(45.0)
Subordinated notes	—			39,553			(39,553)		(100.0)
Junior subordinated debentures	52,894			52,849			45		0.1
Other liabilities	28,546			35,441			(6,895)		(19.5)
Total liabilities	4,435,898			4,488,297			(52,399)		(1.2)
Total stockholders' equity	599,129			544,605			54,524		10.0
Total liabilities and stockholders' equity	$	5,035,027		$	5,032,902		$	2,125	—	%

Tangible assets (1)	$	4,959,447		$	4,955,239		$	4,208	0.1	%
Tangible common equity (1)	523,549			466,942			56,607		12.1

Core deposits (1)	$	4,147,096		$	4,116,058		$	31,038	0.8	%

Share and Per Share Information
Book value per share	$	19.05		$	17.26		$	1.79	10.4	%
Tangible book value per share (1)	16.64			14.80			1.84		12.4

Shares of common stock outstanding	31,455,803			31,559,366

Balance Sheet Ratios
Loan to deposit ratio	78.21		%	80.27		%
Core deposits to total deposits (1)	95.40			95.32
Stockholders' equity to total assets	11.90			10.82
Tangible common equity to tangible assets (1)	10.56			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:

• A $66.1 million decrease in loans, primarily attributable to early payoffs from property sales and refinancings;

• A $62.4 million increase in debt securities, primarily attributable to a reinvestment of cash flows from loan paydowns into debt securities and a $25.4 million increase in the fair value of debt securities available-for-sale;

• The $40.0 million of subordinated notes outstanding at December 31, 2024 were paid off in September 2025;

• A $28.9 million increase in deposits, primarily attributable to $45.0 million of wealth management customer reciprocal money market deposits being brought on balance sheet which was partially offset by a $20.7 million decrease in time deposits; and

• A vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand deposit accounts.

Loan Portfolio

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


	September 30, 2025				December 31, 2024
(dollars in thousands)	Balance		Percent		Balance		Percent

Commercial and industrial	$	395,859	11.7	%	$	428,389	12.4	%
Commercial real estate - owner occupied	312,192		9.2		322,316		9.3
Commercial real estate - non-owner occupied	931,723		27.4		899,565		25.9
Construction and land development	269,924		7.9		374,657		10.8
Multi-family	514,801		15.1		431,524		12.4
One-to-four family residential	443,215		13.0		463,968		13.4
Agricultural and farmland	280,309		8.3		293,375		8.5
Municipal, consumer, and other	252,006		7.4		252,352		7.3
Loans, before allowance for credit losses	3,400,029		100.0	%	3,466,146		100.0	%
Allowance for credit losses	(41,900)				(42,044)
Loans, net of allowance for credit losses	$	3,358,129			$	3,424,102

Loans, before allowance for credit losses were $3.40 billion at September 30, 2025, a decrease of $66.1 million, or 1.9%, from December 31, 2024. Notable changes include the following:

• A $104.7 million decrease in construction and land development loans, primarily attributable to transfers of completed projects into other categories, as well as payoffs from property sales and refinancings;

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

• An $83.3 million increase in multi-family loans and a $32.2 million increase in commercial real estate – non-owner occupied loans, primarily attributable to new originations as well as completed construction projects transferred from the construction and land development category, partially offset by early payoffs.

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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 September 30, 2025 was as follows:


	September 30, 2025
(dollars in thousands)	Balance		Substandard Risk Rating

Manufacturing	$	49,442	$	429
Auto repair and dealers	34,345		244
Health care and social assistance	32,346		1,376
Real estate, rental, and leasing	29,315		388
Retail trade	28,536		—
Accommodation and food services	25,304		328
Grain elevators	17,537		1,423
Construction	15,893		1,558
Other services (except public administration)	13,836		248
Wholesale trade	13,579		—
Administrative and support services	10,611		—
Arts, entertainment, and recreation	9,414		68
Agriculture, forestry, fishing, and hunting	6,411		—
Education services	6,210		1,146
Professional, scientific, and technical services	6,131		51
Finance and insurance	3,181		—
Other	10,101		—
Total	$	312,192	$	7,259

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 September 30, 2025 was as follows:


	September 30, 2025
(dollars in thousands)	Balance		Substandard Risk Rating		Weighted Average LTV (1)

Retail	$	198,732	$	7,417	55	%
Warehouse and manufacturing	186,780		—		54
Office	167,899		32		57
Senior Living	122,922		12,672		63
Hotel	82,506		7,401		54
Mixed use (commercial and residential)	66,614		—		62
Medical office	32,176		—		57
Gas station	24,477		—		61
Auto repair and dealers	19,171		—		54
Restaurant and bar	12,509		—		58
Other	17,937		—		55
Total	$	931,723	$	27,522	57	%

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(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 $514.8 million as of September 30, 2025, and are primarily made based on projected cash flows from the rental of the underlying collateral. As of September 30, 2025, multi-family loans had a weighted average LTV of 56%, 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 $269.9 million as of September 30, 2025. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or 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 the vast majority of exposures over $500 thousand. Additionally, more than 45% of loan commitments are reviewed on a rolling 24 month basis between a robust internal review process and 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 September 30, 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	$	183,042	$	156,932	$	55,885	$	—	$	395,859
Commercial real estate - owner occupied	45,461		173,051		76,760		16,920		312,192
Commercial real estate - non-owner occupied	209,766		603,507		104,831		13,619		931,723
Construction and land development	160,644		101,445		7,123		712		269,924
Multi-family	93,369		371,727		48,435		1,270		514,801
One-to-four family residential	84,937		157,976		71,120		129,182		443,215
Agricultural and farmland	116,596		126,764		31,861		5,088		280,309
Municipal, consumer, and other	105,124		45,371		67,593		33,918		252,006
Total	$	998,939	$	1,736,773	$	463,608	$	200,709	$	3,400,029

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	$	65,346	$	3,630	$	68,976	$	143,841	$	212,817
Commercial real estate - owner occupied	50,733		42,885		93,618		173,113		266,731
Commercial real estate - non-owner occupied	140,349		32,276		172,625		549,332		721,957
Construction and land development	29,402		1,668		31,070		78,210		109,280
Multi-family	91,975		12,173		104,148		317,284		421,432
One-to-four family residential	72,230		62,795		135,025		223,253		358,278
Agricultural and farmland	7,696		10,920		18,616		145,097		163,713
Municipal, consumer, and other	14,724		23,218		37,942		108,940		146,882
Total	$	472,455	$	189,565	$	662,020	$	1,739,070	$	2,401,090

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Nonperforming Assets

Our nonperforming loans and nonperforming assets were as follows:


(dollars in thousands)	September 30, 2025			December 31, 2024

NONPERFORMING ASSETS
Nonaccrual	$	7,637		$	7,652
Past due 90 days or more, still accruing	5			4
Total nonperforming loans	7,642			7,656
Foreclosed assets	1,007			367
Total nonperforming assets	$	8,649		$	8,023

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	1,760		$	1,573

Allowance for credit losses	$	41,900		$	42,044
Loans, before allowance for credit losses	3,400,029			3,466,146

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses	1.23		%	1.21		%
Allowance for credit losses to nonaccrual loans	548.64			549.45
Allowance for credit losses to nonperforming loans	548.29			549.16
Nonaccrual loans to loans, before allowance for credit losses	0.22			0.22
Nonperforming loans to loans, before allowance for credit losses	0.22			0.22
Nonperforming assets to total assets	0.17			0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets	0.25			0.23

Total nonperforming assets were $8.6 million at September 30, 2025, an increase of 7.8%, when compared to $8.0 million at December 31, 2024. Additionally, of the $7.6 million of nonperforming loans held as of September 30, 2025, $1.8 million are either wholly or partially guaranteed by the U.S. Government. The $0.6 million increase in nonperforming assets from December 31, 2024 was primarily attributable to an increase in foreclosed assets.

Risk Classification of Loans

Our risk classifications of loans were as follows:


(dollars in thousands)	September 30, 2025		December 31, 2024

Pass	$	3,215,114	$	3,264,396
Pass-watch	89,732		83,947
Special mention	15,090		46,590
Substandard	80,093		71,213
Total	$	3,400,029	$	3,466,146

Loans rated pass-watch or worse decreased $16.8 million, or 8.3%, from December 31, 2024 to September 30, 2025, primarily attributable to the pay-offs across the multi-family and construction and land development segments.

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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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025			2024			2025			2024

Net charge-offs (recoveries)
Commercial and industrial	$	(61)		$	707		$	878		$	1,165
Commercial real estate - owner occupied	111			(4)			79			(8)
Commercial real estate - non-owner occupied	—			(329)			—			(586)
Construction and land development	—			—			4			(2)
Multi-family	—			—			43			188
One-to-four family residential	(26)			81			404			4
Agricultural and farmland	4			(2)			(43)			(10)
Municipal, consumer, and other	106			133			245			314
Total	$	134		$	586		$	1,610		$	1,065

Average loans
Commercial and industrial	$	412,004		$	395,431		$	425,942		$	402,807
Commercial real estate - owner occupied	315,285			282,143			320,283			291,371
Commercial real estate - non-owner occupied	915,168			885,529			902,389			885,021
Construction and land development	295,144			373,218			343,970			364,598
Multi-family	485,452			424,879			446,911			422,968
One-to-four family residential	444,420			484,247			453,116			487,949
Agricultural and farmland	275,064			290,426			278,044			284,465
Municipal, consumer, and other	237,100			243,426			248,422			235,696
Total	$	3,379,637		$	3,379,299		$	3,419,077		$	3,374,875

Charge-offs (recoveries) to average loans *
Commercial and industrial	(0.06)		%	0.71		%	0.28		%	0.39		%
Commercial real estate - owner occupied	0.14			(0.01)			0.03			—
Commercial real estate - non-owner occupied	—			(0.15)			—			(0.09)
Construction and land development	—			—			—			—
Multi-family	—			—			0.01			0.06
One-to-four family residential	(0.02)			0.07			0.12			—
Agricultural and farmland	0.01			—			(0.02)			—
Municipal, consumer, and other	0.18			0.22			0.13			0.18
Total	0.02		%	0.07		%	0.06		%	0.04		%

_________________________________________________

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

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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 September 30, 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.


	September 30, 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	$	19,987	0.95	%	$	—	—	%	$	19,987	0.95	%
U.S. government agency	9,498		2.53		5,000		1.10		14,498		2.04
Municipal	4,600		1.56		2,998		3.06		7,598		2.15
Mortgage-backed:
Agency residential	217		2.92		—		—		217		2.92
Agency commercial	7,445		1.85		2,847		2.21		10,292		1.95
Corporate	1,998		6.00		—		—		1,998		6.00
Total	$	43,745	1.75	%	$	10,845	1.93	%	$	54,590	1.79	%
Due after 1 year through 5 years
U.S. Treasury	$	70,047	1.35	%	$	—	—	%	$	70,047	1.35	%
U.S. government agency	23,806		2.33		37,351		2.44		61,157		2.40
Municipal	64,544		1.65		17,005		3.18		81,549		1.97
Mortgage-backed:
Agency residential	9,256		2.74		10,788		2.10		20,044		2.40
Agency commercial	70,777		1.65		100,910		2.29		171,687		2.03
Corporate	23,307		6.72		—		—		23,307		6.72
Total	$	261,737	2.12	%	$	166,054	2.40	%	$	427,791	2.23	%
Due after 5 years through 10 years
U.S. Treasury	$	9,725	1.66	%	$	—	—	%	$	9,725	1.66	%
U.S. government agency	18,626		3.62		46,138		2.66		64,764		2.94
Municipal	63,469		1.87		8,659		3.64		72,128		2.08
Mortgage-backed:
Agency residential	58,737		2.40		—		—		58,737		2.40
Agency commercial	6,264		2.31		127,375		1.83		133,639		1.85
Corporate	35,500		5.95		—		—		35,500		5.95
Total	$	192,321	2.96	%	$	182,172	2.13	%	$	374,493	2.55	%
Due after 10 years


Municipal	$	17,110	2.21	%	$	1,937	3.47	%	$	19,047	2.34	%
Mortgage-backed:
Agency residential	256,747		4.50		67,445		3.62		324,192		4.32
Agency commercial	49,311		3.45		38,112		1.91		87,423		2.78
Corporate	6,760		6.41		—		—		6,760		6.41
Total	$	329,928	4.26	%	$	107,494	3.01	%	$	437,422	3.96	%
Total
U.S. Treasury	$	99,759	1.30	%	$	—	—	%	$	99,759	1.30	%
U.S. government agency	51,930		2.83		88,489		2.48		140,419		2.61
Municipal	149,723		1.80		30,599		3.32		180,322		2.06
Mortgage-backed:
Agency residential	324,957		4.07		78,233		3.41		403,190		3.94
Agency commercial	133,797		2.36		269,244		2.02		403,041		2.13
Corporate	67,565		6.26		—		—		67,565		6.26
Total	$	827,731	3.15	%	$	466,565	2.42	%	$	1,294,296	2.89	%

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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.

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


	Three Months Ended September 30,												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	$	1,028,608	23.8	%	—	%	$	1,013,893	23.5	%	—	%	1.5	%
Interest-bearing demand	1,113,391		25.8		0.60		1,085,609		25.2		0.52		2.6
Money market	833,812		19.3		2.21		800,651		18.6		2.35		4.1
Savings	568,001		13.2		0.28		573,077		13.3		0.27		(0.9)
Time	771,360		17.9		3.23		804,379		18.7		3.81		(4.1)
Brokered	—		—		—		29,996		0.7		5.54		(100.0)
Total deposits	$	4,315,172	100.0	%	1.19	%	$	4,307,605	100.0	%	1.35	%	0.2	%

	Nine Months Ended September 30,												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	$	1,039,564	24.0	%	—	%	$	1,031,239	23.8	%	—	%	0.8	%
Interest-bearing demand	1,119,902		25.9		0.56		1,112,198		25.7		0.50		0.7
Money market	818,453		18.9		2.20		800,693		18.5		2.37		2.2
Savings	568,891		13.2		0.27		592,134		13.7		0.28		(3.9)
Time	778,618		18.0		3.34		744,349		17.2		3.72		4.6
Brokered	—		—		—		50,046		1.1		5.49		(100.0)
Total deposits	$	4,325,428	100.0	%	1.20	%	$	4,330,659	100.0	%	1.31	%	(0.1)	%

_________________________________________________

* Annualized measure.

Average deposit balances have been relatively stable in 2025 compared to 2024, with growth in money market and time deposits being offset by decreases in savings and 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 half of 2025 and $45.0 million of wealth management customer reciprocal money market deposits were brought on balance sheet at the end of the third quarter of 2025.

The following table sets forth time deposits by remaining maturity as of September 30, 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	$	105,540	$	106,623	$	73,867	$	34,806	$	320,836
Amounts of $100,000 or more but less than $250,000	88,011		82,876		55,262		17,639		243,788
Amounts of $250,000 or more	43,592		82,364		69,593		4,542		200,091
Total time deposits	$	237,143	$	271,863	$	198,722	$	56,987	$	764,715

As of September 30, 2025 and December 31, 2024, the Bank’s uninsured deposits were estimated to be $964.5 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 September 30, 2025 and December 31, 2024, our on-balance sheet sources of liquidity included the following:


(dollars in thousands)	September 30, 2025		December 31, 2024

Cash and cash equivalents	$	155,133	$	137,692
Fair value of unpledged securities	728,368		705,106
Total cash and unpledged securities	$	883,501	$	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 September 30, 2025, our current borrowings and additional available borrowing capacity were as follows:


	September 30, 2025
(dollars in thousands)	Current Balance		Additional Available Capacity

FHLB	$	7,271	$	1,004,044
Federal Reserve	—		108,038
Federal funds lines of credit	—		80,000
Total	$	7,271	$	1,192,082

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

As of September 30, 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 September 30, 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 September 30, 2025, the Holding Company had cash and cash equivalents of $10.7 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 September 30, 2025 and 2024, the Bank paid $25.0 million and $8.0 million in dividends to the Holding Company, respectively. During the nine months ended September 30, 2025 and 2024, the Bank paid $62.5 million and $26.0 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 debt, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended September 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $1.3 million and $1.5 million, respectively, and other operating expenses of $1.5 million and $1.0 million, respectively. During the nine months ended September 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $4.1 million and $4.3 million, respectively, and other operating expenses of $3.7 million and $3.1 million, respectively. Additionally, the Holding Company paid $6.7 million and $6.0 million of dividends to stockholders during the three months ended September 30, 2025 and 2024, respectively, and paid $20.0 million and $18.1 million of dividends to stockholders during the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 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 September 30, 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 September 30, 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 September 30, 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.


	September 30, 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)	16.77	%	16.51	%	10.50	%	N/A
Tier 1 Capital (to Risk Weighted Assets)	15.67		14.50		8.50		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	14.35		13.21		7.00		N/A
Tier 1 Capital (to Average Assets)	12.16		11.51		4.00		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	16.49	%	16.11	%	10.50	%	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	15.40		15.10		8.50		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	15.40		15.10		7.00		6.50
Tier 1 Capital (to Average Assets)	11.95		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 September 30, 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 quarterly cash dividends of $0.21 during the first three quarters of 2025.

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Stock Repurchase Program

Under the Company's stock repurchase program, the Company repurchased 39,631 shares of its common stock at a weighted average price of $25.36 during the three months ended September 30, 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 September 30, 2025, the Company had $11.1 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 15 – 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, - losses on extinguishment of debt, - 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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025			2024			2025			2024

Net income	$	19,765		$	18,180		$	58,070		$	51,508
Less: adjustments


Loss on extinguishment of debt	(391)			—			(391)			—
Gains (losses) on closed branch premises	(7)			—			2			(635)
Realized gains (losses) on sales of securities	(49)			—			(49)			(3,382)
Mortgage servicing rights fair value adjustment	(514)			(1,488)			(1,573)			(1,505)
Total adjustments	(961)			(1,488)			(2,011)			(5,522)
Tax effect of adjustments (1)	274			424			573			1,574
Total adjustments after tax effect	(687)			(1,064)			(1,438)			(3,948)
Adjusted net income	$	20,452		$	19,244		$	59,508		$	55,456

Average assets	$	5,027,161		$	5,006,721		$	5,031,491		$	5,012,656

Return on average assets *	1.56		%	1.44		%	1.54		%	1.37		%
Adjusted return on average assets *	1.61			1.53			1.58			1.48

_________________________________________________

* 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 September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2025		2024		2025		2024

Numerator:
Net income	$	19,765	$	18,180	$	58,070	$	51,508



Adjusted net income	$	20,452	$	19,244	$	59,508	$	55,456



Denominator:
Weighted average common shares outstanding	31,481,135		31,559,366		31,525,247		31,600,442
Dilutive effect of outstanding restricted stock units	106,800		118,180		103,682		115,266
Weighted average common shares outstanding, including all dilutive potential shares	31,587,935		31,677,546		31,628,929		31,715,708

Earnings per share - basic	$	0.63	$	0.58	$	1.84	$	1.63
Earnings per share - diluted	$	0.63	$	0.57	$	1.84	$	1.62

Adjusted earnings per share - basic	$	0.65	$	0.61	$	1.89	$	1.75
Adjusted earnings per share - diluted	$	0.65	$	0.61	$	1.88	$	1.75

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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 September 30,				Nine Months Ended September 30,
(dollars in thousands)	2025		2024		2025		2024

Net interest income	$	49,986	$	47,733	$	148,352	$	141,449
Noninterest income	9,849		8,705		28,295		23,941
Noninterest expense	(32,508)		(31,322)		(96,357)		(93,099)
Pre-provision net revenue	27,327		25,116		80,290		72,291
Less: adjustments


Loss on extinguishment of debt	(391)		—		(391)		—
Gains (losses) on closed branch premises	(7)		—		2		(635)
Realized gains (losses) on sales of securities	(49)		—		(49)		(3,382)
Mortgage servicing rights fair value adjustment	(514)		(1,488)		(1,573)		(1,505)
Total adjustments	(961)		(1,488)		(2,011)		(5,522)
Adjusted pre-provision net revenue	$	28,288	$	26,604	$	82,301	$	77,813

Pre-provision net revenue	$	27,327	$	25,116	$	80,290	$	72,291
Less: net charge-offs	134		586		1,610		1,065
Pre-provision net revenue less net charge-offs	$	27,193	$	24,530	$	78,680	$	71,226

Adjusted pre-provision net revenue	$	28,288	$	26,604	$	82,301	$	77,813
Less: net charge-offs	134		586		1,610		1,065
Adjusted pre-provision net revenue less net charge-offs	$	28,154	$	26,018	$	80,691	$	76,748

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Reconciliation of Non-GAAP Financial Measure —

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


	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025			2024			2025			2024

Net interest income (tax-equivalent basis)
Net interest income	$	49,986		$	47,733		$	148,352		$	141,449
Tax-equivalent adjustment (1)	552			552			1,645			1,680
Net interest income (tax-equivalent basis) (1)	$	50,538		$	48,285		$	149,997		$	143,129

Net interest margin (tax-equivalent basis)
Net interest margin *	4.13		%	3.98		%	4.13		%	3.96		%
Tax-equivalent adjustment * (1)	0.05			0.05			0.05			0.05
Net interest margin (tax-equivalent basis) * (1)	4.18		%	4.03		%	4.18		%	4.01		%

Average interest-earning assets	$	4,800,519		$	4,769,471		$	4,802,260		$	4,773,478

_________________________________________________

* 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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025			2024			2025			2024

Total noninterest expense	$	32,508		$	31,322		$	96,357		$	93,099
Less: amortization of intangible assets	694			710			2,083			2,130
Noninterest expense excluding amortization of intangible assets	$	31,814		$	30,612		$	94,274		$	90,969
Less: adjustments to noninterest expense


Loss on extinguishment of debt	391			—			391			—
Total adjustments to noninterest expense	391			—			391			—
Adjusted noninterest expense	$	31,423		$	30,612		$	93,883		$	90,969

Net interest income	$	49,986		$	47,733		$	148,352		$	141,449
Total noninterest income	9,849			8,705			28,295			23,941
Operating revenue	59,835			56,438			176,647			165,390
Tax-equivalent adjustment (1)	552			552			1,645			1,680
Operating revenue (tax-equivalent basis) (1)	60,387			56,990			178,292			167,070
Less: adjustments to noninterest income
Gains (losses) on closed branch premises	(7)			—			2			(635)
Realized gains (losses) on sales of securities	(49)			—			(49)			(3,382)
Mortgage servicing rights fair value adjustment	(514)			(1,488)			(1,573)			(1,505)
Total adjustments to noninterest income	(570)			(1,488)			(1,620)			(5,522)
Adjusted operating revenue (tax-equivalent basis) (1)	60,957			58,478			$	179,912		$	172,592

Efficiency ratio	53.17		%	54.24		%	53.37		%	55.00		%
Efficiency ratio (tax-equivalent basis) (1)	52.68			53.71			52.88			54.45
Adjusted efficiency ratio (tax-equivalent basis) (1)	51.55			52.35			52.18			52.71

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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)	September 30, 2025			December 31, 2024

Tangible Common Equity
Total stockholders' equity	$	599,129		$	544,605
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	15,760			17,843
Tangible common equity	$	523,549		$	466,942

Tangible Assets
Total assets	$	5,035,027		$	5,032,902
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	15,760			17,843
Tangible assets	$	4,959,447		$	4,955,239

Total stockholders' equity to total assets	11.90		%	10.82		%
Tangible common equity to tangible assets	10.56			9.42

Shares of common stock outstanding	31,455,803			31,559,366

Book value per share	$	19.05		$	17.26
Tangible book value per share	16.64			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 September 30,						Nine Months Ended September 30,
(dollars in thousands)	2025			2024			2025			2024

Average Tangible Common Equity
Total stockholders' equity	$	589,076		$	523,745		$	572,225		$	506,582
Less: Goodwill	59,820			59,820			59,820			59,820
Less: Intangible assets, net	16,095			18,892			16,781			19,607
Average tangible common equity	$	513,161		$	445,033		$	495,624		$	427,155

Net income	$	19,765		$	18,180		$	58,070		$	51,508
Adjusted net income	20,452			19,244			59,508			55,456

Return on average stockholders' equity *	13.31		%	13.81		%	13.57		%	13.58		%
Return on average tangible common equity *	15.28			16.25			15.66			16.11

Adjusted return on average stockholders' equity *	13.77		%	14.62		%	13.90		%	14.62		%
Adjusted return on average tangible common equity *	15.81			17.20			16.05			17.34

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* Annualized measure.

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Reconciliation of Non-GAAP Financial Measure —

Core Deposits


(dollars in thousands)	September 30, 2025			December 31, 2024

Core Deposits
Total deposits	$	4,347,187		$	4,318,254
Less: time deposits of $250,000 or more	200,091			202,196
Less: brokered deposits	—			—
Core deposits	$	4,147,096		$	4,116,058

Core deposits to total deposits	95.40		%	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 16.5%.

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
September 30, 2025
+400	30.1	%	6.0	%	15.4	%
+300	24.5		5.1		12.4
+200	17.5		4.0		9.1
+100	9.4		2.5		5.2
-100	(10.7)		(4.1)		(6.9)
-200	(19.1)		(4.8)		(10.9)
-300	(12.9)		(5.0)		(13.8)
-400	(4.7)		(4.8)		(14.2)

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 September 30, 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 September 30, 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 third 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)
July 1 - 31, 2025	—	$	—	—	$	12,103
August 1 - 31, 2025	21,813	25.02		21,813	11,557
September 1 - 30, 2025	17,818	25.78		17,818	11,098
Total	39,631	$	25.36	39,631	$	11,098

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 September 30, 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

2.1 *						Agreement and Plan of Merger among HBT Financial, Inc., HB-CNB Merger, Inc. and CNB Bank Shares, Inc., dated October 20, 2025 (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K, filed with the Commission on October 20, 2025).

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).

_________________________________________________

* The Company has omitted schedules and similar attachments to the subject agreement pursuant to Item 601(b) of Regulation S-K. The Company will furnish a copy of any omitted schedule or similar attachment to the SEC upon request.

** 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.

October 31, 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 Business Combinations Note 3 Securities Note 4 Loans and Related Allowance For Credit Losses Note 5 Loan Servicing Note 6 Foreclosed Assets Note 7 Deposits Note 8 Derivative Financial Instruments Note 9 Accumulated Other Comprehensive Income (loss)Note 10 Earnings Per Share Note 11 Stock-based Compensation Plans Note 12 Regulatory Capital Note 13 Segment Information Note 14 Fair Value Of Financial Instruments Note 15 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

2.1 * Agreement and Plan of Merger among HBT Financial, Inc., HB-CNB Merger, Inc. and CNB Bank Shares, Inc., dated October 20, 2025 (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K, filed with the Commission on October 20, 2025). 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 Sept. 30, 2025

Exhibits