HBT Financial Reports Mixed Q3 Results, Net Income Decreases 7.8% Year-Over-Year

HBT Financial, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing mixed performance compared to the previous fiscal period. The company recorded net income of $18.2 million for Q3 2024, a decrease of 7.8% from $19.7 million in Q3 2023. However, net income for the nine months increased to $51.5 million, up 8.7% from $47.4 million in the same period last year. The decline in quarterly net income was attributed to a $1.5 million negative adjustment related to mortgage servicing rights and increased salaries expense, while the nine-month increase was bolstered by the absence of acquisition-related expenses, which totaled $13.7 million in the prior year.

Total interest and dividend income for Q3 2024 rose to $64.1 million, compared to $59.0 million in Q3 2023. However, total interest expense also increased significantly to $16.4 million from $10.8 million, leading to a slight decrease in net interest income to $47.7 million from $48.3 million year-over-year. For the nine months, total interest and dividend income increased to $188.9 million from $167.6 million, while total interest expense surged to $47.5 million from $23.6 million, resulting in a decrease in net interest income to $141.4 million from $144.0 million.

The company’s total assets as of September 30, 2024, were $5.0 billion, a slight increase from $4.9 billion a year earlier. Total deposits decreased to $4.3 billion from $4.4 billion, primarily due to a drop in brokered deposits. The loan portfolio also saw a decrease, with total loans before allowance for credit losses at $3.37 billion, down from $3.40 billion at the end of 2023. Notably, the composition of loans shifted, with increases in multi-family and agricultural loans, while commercial and industrial loans decreased.

HBT Financial completed the acquisition of Town and Country Financial Corporation on February 1, 2023, which added significant assets and deposits to the company. The acquisition-related expenses were no longer present in 2024, contributing to improved profitability metrics for the nine-month period. The company continues to focus on enhancing its digital banking capabilities and managing interest rate risk, which remains a significant concern given the current economic environment.

As of September 30, 2024, HBT Financial maintained strong capital ratios, with total capital to risk-weighted assets at 16.54%, well above regulatory requirements. The company also reported an increase in stockholders' equity to $537.7 million, reflecting a solid financial position despite the challenges faced in the current market.