HBT Financial, Inc. Announces Second Quarter 2024 Financial Results

Second Quarter Highlights

  • Net income of $18.1 million, or $0.57 per diluted share; return on average assets (“ROAA”) of 1.45%; return on average stockholders’ equity (“ROAE”) of 14.48%; and return on average tangible common equity (“ROATCE”)(1) of 17.21%
  • Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.54%; and adjusted ROATCE(1) of 17.27%
  • Asset quality remained strong with nonperforming assets to total assets of 0.17%, close to a historic low
  • Net interest margin and net interest margin (tax-equivalent basis)(1) increased slightly to 3.95% and 4.00%, respectively

BLOOMINGTON, Ill., July 22, 2024 (GLOBE NEWSWIRE) — HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024. This compares to net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024, and net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “On behalf of HBT Financial, I would like to first express my condolences to the George Drake family. George passed away on May 13th at the age of 97. He started his banking career just after World War II at the State Bank of Cornland, which had been founded by his father M.B. Drake, and he spent over 70 years in banking before retiring from our Board of Directors in 2019. He formed Heartland Bancorp, Inc. (now HBT Financial) in 1982 as one of the first multi-bank holding companies in Illinois. I had the pleasure of knowing George for 22 years and his kindness and wisdom impacted me. His leadership and vision established the foundation for our success today.

As for the second quarter, we delivered another set of very strong performance metrics with net income of $18.1 million, a ROAA of 1.45% and ROATCE(1) of 17.21%. In addition, our tangible book value per share of $13.64 has grown 17.8% over the past year. During the quarter, we saw solid loan growth of $39.5 million, or 4.7% on an annualized basis, as well as stability in our core deposit base. We have seen the continued repricing of our loan portfolio and tight management of deposit costs positively impact our net interest margin (tax-equivalent basis)(1) which expanded 1 basis point to 4.00% for the quarter.

While we continue to invest in our business, our costs were well controlled during the quarter as demonstrated by our efficiency ratio (tax-equivalent basis)(1) of 52.1%. Our loan portfolio is performing well with no apparent signs of concentrated stress in sub portfolios, such as office and retail commercial real estate, while nonperforming assets represented only 0.17% of total assets and net charge-offs were only 0.08% of average loans on an annualized basis for the quarter.”
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(1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Adjusted Net Income

In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024, and adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2024 was $47.0 million, a slight increase of 0.7% from $46.7 million for the first quarter of 2024. The slight increase was primarily attributable to improved asset yields and growth in interest-earning assets which were mostly offset by an increase in funding costs.

Relative to the second quarter of 2023, net interest income decreased 3.8% from $48.9 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.

Net interest margin for the second quarter of 2024 was 3.95%, compared to 3.94% for the first quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the second quarter of 2024 was 4.00%, compared to 3.99% for the first quarter of 2024. Higher yields on interest-earning assets, which increased by 5 basis points to 5.28%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.42%.

Relative to the second quarter of 2023, net interest margin decreased 21 basis points from 4.16% and net interest margin (tax-equivalent basis)(1) decreased 22 basis points from 4.22%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
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(1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Noninterest Income

Noninterest income for the second quarter of 2024 was $9.6 million, an increase from $5.6 million for the first quarter of 2024. The increase was primarily attributable to the absence of $3.4 million of losses on sales of securities and $0.6 million of impairment losses related to the closure of two branches recognized during the first quarter of 2024. Additionally, seasonal changes in card income, which increased by $0.3 million, were mostly offset by a $0.2 million decrease in other noninterest income.

Relative to the second quarter of 2023, noninterest income decreased 3.1% from $9.9 million. The decrease was primarily attributable to a $0.2 million change in the mortgage servicing rights fair value adjustment and a $0.2 million decrease in other noninterest income. Partially offsetting these decreases was a $0.3 million increase in wealth management fees, driven by higher values of assets under management during the second quarter of 2024 relative to the second quarter of 2023.

Noninterest Expense

Noninterest expense for the second quarter of 2024 was $30.5 million, a 2.4% decrease from $31.3 million for the first quarter of 2024. The decrease was primarily attributable to a $0.3 million decrease in salaries expense, which included higher vacation accruals and payroll taxes in the first quarter of 2024, a $0.3 million decrease in occupancy expense, and a $0.3 million decrease in data processing expense.

Relative to the second quarter of 2023, noninterest expense decreased 10.2% from $34.0 million. The decrease was primarily attributable to the absence of $0.8 million of legal fees and $0.8 million of accruals related to legal matters previously disclosed as well as the absence of $0.6 million of Town and Country Financial Corporation (“Town and Country”) acquisition-related expenses incurred during the second quarter of 2023. Additionally, the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023 further contributed to the decrease in noninterest expense.

Acquisition-related expenses recognized during the three and six months ended June 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

       
(dollars in thousands) Three Months Ended
June 30, 2023
  Six Months Ended
June 30, 2023
       
PROVISION FOR CREDIT LOSSES $   $ 5,924
NONINTEREST EXPENSE      
Salaries   66     3,584
Furniture and equipment   39     39
Data processing   176     2,031
Marketing and customer relations   10     24
Loan collection and servicing   125     125
Legal fees and other noninterest expense   211     1,964
Total noninterest expense   627     7,767
Total acquisition-related expenses $ 627   $ 13,691

Income Taxes

During the second quarter of 2024, we recognized an additional $0.5 million of tax expense for a deferred tax asset write-down, primarily as a result of an Illinois tax change. This increased our effective tax rate to 27.6% during the second quarter of 2024 from 25.6% during the first quarter of 2024. We expect this write-down to be earned back over several years through reduced state tax expense.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.39 billion at June 30, 2024, compared with $3.35 billion at March 31, 2024, and $3.24 billion at June 30, 2023. The $39.5 million increase from March 31, 2024 was primarily attributable to draws on existing construction projects and new construction loans to existing customers. In addition, growth in our municipal, consumer and other portfolio was primarily due to draws on an existing loan to a recurring borrower. The $8.4 million increase in multi-family loans was driven predominately by the completion of projects previously in the construction and land development category.

Deposits

Total deposits were $4.32 billion at June 30, 2024, compared with $4.36 billion at March 31, 2024, and $4.16 billion at June 30, 2023. The $41.9 million decrease from March 31, 2024 was primarily attributable to a $25.8 million decrease in brokered deposits and a $16.1 million decrease in higher cost reciprocal wealth management customer deposits included with money market deposits. Partially offsetting these decreases was a $31.1 million increase in time deposits from a State of Illinois loan matching program, a lower cost source of funding, which totaled $65.0 million as of June 30, 2024.

Asset Quality

Nonperforming loans totaled $8.4 million, or 0.25% of total loans, at June 30, 2024, compared with $9.7 million, or 0.29% of total loans, at March 31, 2024, and $7.5 million, or 0.23% of total loans, at June 30, 2023. Additionally, of the $8.4 million of nonperforming loans held as of June 30, 2024, $2.1 million is either wholly or partially guaranteed by the U.S. government. The $1.2 million decrease in nonperforming loans from March 31, 2024 was primarily attributable to a $0.4 million reduction in nonaccrual one-to-four family residential loans as well as charge-offs.

The Company recorded a provision for credit losses of $1.2 million for the second quarter of 2024. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic forecasts and a $0.9 million increase in required reserves driven by increased loan balances and changes within the loan portfolio which were mostly offset by a $0.7 million decrease in specific reserves.

The Company had net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, compared to net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. During the second quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category, which had $0.5 million of net charge-offs, and the multi-family category, which had $0.2 million of net charge-offs.

The Company’s allowance for credit losses was 1.21% of total loans and 484% of nonperforming loans at June 30, 2024, compared with 1.22% of total loans and 423% of nonperforming loans at March 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.3 million as of June 30, 2024, compared with $3.8 million as of March 31, 2024.

Capital

As of June 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

    June 30, 2024   For Capital
Adequacy Purposes
With Capital
Conversation Buffer
         
Total capital to risk-weighted assets   16.01 %   10.50 %
Tier 1 capital to risk-weighted assets   13.98     8.50  
Common equity tier 1 capital ratio   12.66     7.00  
Tier 1 leverage ratio   10.83     4.00  
             

The ratio of tangible common equity to tangible assets(1) increased to 8.74% as of June 30, 2024, from 8.40% as of March 31, 2024, and tangible book value per share(1) increased by $0.45 to $13.64 as of June 30, 2024, when compared to March 31, 2024.

During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of $18.74 under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of June 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.
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(1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

About HBT Financial, Inc.

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. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of June 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. 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 directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external 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; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company’s assets (including the effects of sustained, elevated interest rates); (vi) 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; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) 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; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

CONTACT:
Peter Chapman
[email protected]
(309) 664-4556

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

         
    As of or for the Three Months Ended   Six Months Ended June 30,
(dollars in thousands, except per share data)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
Interest and dividend income   $ 62,824     $ 61,961     $ 56,768     $ 124,785     $ 108,547  
Interest expense     15,796       15,273       7,896       31,069       12,838  
Net interest income     47,028       46,688       48,872       93,716       95,709  
Provision for credit losses     1,176       527       (230 )     1,703       5,980  
Net interest income after provision for credit losses     45,852       46,161       49,102       92,013       89,729  
Noninterest income     9,610       5,626       9,914       15,236       17,351  
Noninterest expense     30,509       31,268       33,973       61,777       69,906  
Income before income tax expense     24,953       20,519       25,043       45,472       37,174  
Income tax expense     6,883       5,261       6,570       12,144       9,493  
Net income   $ 18,070     $ 15,258     $ 18,473     $ 33,328     $ 27,681  
                     
Earnings per share – Diluted   $ 0.57     $ 0.48     $ 0.58     $ 1.05     $ 0.88  
                     
Adjusted net income (1)   $ 18,139     $ 18,073     $ 18,772     $ 36,212     $ 38,631  
Adjusted earnings per share – Diluted (1)     0.57       0.57       0.58       1.14       1.22  
                     
Book value per share   $ 16.14     $ 15.71     $ 14.15          
Tangible book value per share (1)     13.64       13.19       11.58          
                     
Shares of common stock outstanding     31,559,366       31,612,888       31,865,868          
Weighted average shares of common stock outstanding     31,579,457       31,662,954       31,980,133       31,621,205       31,481,439  
                     
SUMMARY RATIOS                    
Net interest margin *     3.95 %     3.94 %     4.16 %     3.95 %     4.18 %
Net interest margin (tax-equivalent basis) * (1)(2)     4.00       3.99       4.22       3.99       4.24  
                     
Efficiency ratio     52.61 %     58.41 %     56.57 %     55.40 %     60.74 %
Efficiency ratio (tax-equivalent basis) (1)(2)     52.10       57.78       55.89       54.83       59.99  
                     
Loan to deposit ratio     78.39 %     76.73 %     77.91 %        
                     
Return on average assets *     1.45 %     1.23 %     1.49 %     1.34 %     1.15 %
Return on average stockholders’ equity *     14.48       12.42       16.30       13.46       12.73  
Return on average tangible common equity * (1)     17.21       14.83       19.91       16.03       15.31  
                     
Adjusted return on average assets * (1)     1.45 %     1.45 %     1.51 %     1.45 %     1.60 %
Adjusted return on average stockholders’ equity * (1)     14.54       14.72       16.57       14.63       17.77  
Adjusted return on average tangible common equity * (1)     17.27       17.57       20.23       17.42       21.36  
                     
CAPITAL                    
Total capital to risk-weighted assets     16.01 %     15.79 %     15.03 %        
Tier 1 capital to risk-weighted assets     13.98       13.77       13.12          
Common equity tier 1 capital ratio     12.66       12.44       11.78          
Tier 1 leverage ratio     10.83       10.65       10.07          
Total stockholders’ equity to total assets     10.18       9.85       9.06          
Tangible common equity to tangible assets (1)     8.74       8.40       7.54          
                     
ASSET QUALITY                    
Net charge-offs (recoveries) to average loans     0.08 %   (0.02)        %   (0.01)        %     0.03 %   (0.01)        %
Allowance for credit losses to loans, before allowance for credit losses     1.21       1.22       1.17          
Nonperforming loans to loans, before allowance for credit losses     0.25       0.29       0.23          
Nonperforming assets to total assets     0.17       0.20       0.21          

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  • Annualized measure.

(1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.  

HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Statements of Income

       
  Three Months Ended   Six Months Ended June 30,
(dollars in thousands, except per share data) June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
INTEREST AND DIVIDEND INCOME                  
Loans, including fees:                  
Taxable $ 52,177     $ 51,926     $ 47,149     $ 104,103     $ 89,308  
Federally tax exempt   1,097       1,094       1,040       2,191       1,992  
Securities:                  
Taxable   6,386       6,250       6,518       12,636       13,134  
Federally tax exempt   521       597       1,162       1,118       2,359  
Interest-bearing deposits in bank   2,570       1,952       781       4,522       1,520  
Other interest and dividend income   73       142       118       215       234  
Total interest and dividend income   62,824       61,961       56,768       124,785       108,547  
INTEREST EXPENSE                  
Deposits   14,133       13,593       4,323       27,726       6,697  
Securities sold under agreements to repurchase   129       152       34       281       72  
Borrowings   121       125       2,189       246       3,486  
Subordinated notes   469       470       469       939       939  
Junior subordinated debentures issued to capital trusts   944       933       881       1,877       1,644  
Total interest expense   15,796       15,273       7,896       31,069       12,838  
Net interest income   47,028       46,688       48,872       93,716       95,709  
PROVISION FOR CREDIT LOSSES   1,176       527       (230 )     1,703       5,980  
Net interest income after provision for credit losses   45,852       46,161       49,102       92,013       89,729  
NONINTEREST INCOME                  
Card income   2,885       2,616       2,905       5,501       5,563  
Wealth management fees   2,623       2,547       2,279       5,170       4,617  
Service charges on deposit accounts   1,902       1,869       1,919       3,771       3,790  
Mortgage servicing   1,111       1,055       1,254       2,166       2,353  
Mortgage servicing rights fair value adjustment   (97 )     80       141       (17 )     (483 )
Gains on sale of mortgage loans   443       298       373       741       649  
Realized gains (losses) on sales of securities         (3,382 )           (3,382 )     (1,007 )
Unrealized gains (losses) on equity securities   (96 )     (16 )     7       (112 )     (15 )
Gains (losses) on foreclosed assets   (28 )     87       (97 )     59       (107 )
Gains (losses) on other assets         (635 )     109       (635 )     109  
Income on bank owned life insurance   166       164       147       330       262  
Other noninterest income   701       943       877       1,644       1,620  
Total noninterest income   9,610       5,626       9,914       15,236       17,351  
NONINTEREST EXPENSE                  
Salaries   16,364       16,657       16,660       33,021       36,071  
Employee benefits   2,860       2,805       2,707       5,665       5,042  
Occupancy of bank premises   2,243       2,582       2,785       4,825       4,887  
Furniture and equipment   548       550       809       1,098       1,468  
Data processing   2,606       2,925       2,883       5,531       7,206  
Marketing and customer relations   996       996       1,359       1,992       2,195  
Amortization of intangible assets   710       710       720       1,420       1,230  
FDIC insurance   565       560       630       1,125       1,193  
Loan collection and servicing   475       452       348       927       626  
Foreclosed assets   10       49       97       59       158  
Other noninterest expense   3,132       2,982       4,975       6,114       9,830  
Total noninterest expense   30,509       31,268       33,973       61,777       69,906  
INCOME BEFORE INCOME TAX EXPENSE   24,953       20,519       25,043       45,472       37,174  
INCOME TAX EXPENSE   6,883       5,261       6,570       12,144       9,493  
NET INCOME $ 18,070     $ 15,258     $ 18,473     $ 33,328     $ 27,681  
                   
EARNINGS PER SHARE – BASIC $ 0.57     $ 0.48     $ 0.58     $ 1.05     $ 0.88  
EARNINGS PER SHARE – DILUTED $ 0.57     $ 0.48     $ 0.58     $ 1.05     $ 0.88  
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING   31,579,457       31,662,954       31,980,133       31,621,205       31,481,439  
                                       
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance Sheets
           
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
ASSETS          
Cash and due from banks $ 22,604     $ 19,989     $ 28,044  
Interest-bearing deposits with banks   172,636       240,223       81,764  
Cash and cash equivalents   195,240       260,212       109,808  
           
Interest-bearing time deposits with banks   520       515        
Debt securities available-for-sale, at fair value   669,055       669,020       822,788  
Debt securities held-to-maturity   512,549       517,472       533,231  
Equity securities with readily determinable fair value   3,228       3,324       3,152  
Equity securities with no readily determinable fair value   2,613       2,622       2,275  
Restricted stock, at cost   5,086       5,155       11,345  
Loans held for sale   858       3,479       8,829  
           
Loans, before allowance for credit losses   3,385,483       3,345,962       3,244,655  
Allowance for credit losses   (40,806 )     (40,815 )     (37,814 )
Loans, net of allowance for credit losses   3,344,677       3,305,147       3,206,841  
           
Bank owned life insurance   24,235       24,069       23,594  
Bank premises and equipment, net   65,711       64,755       65,029  
Bank premises held for sale   317       317       35  
Foreclosed assets   320       277       3,080  
Goodwill   59,820       59,820       59,876  
Intangible assets, net   19,262       19,972       22,122  
Mortgage servicing rights, at fair value   18,984       19,081       20,133  
Investments in unconsolidated subsidiaries   1,614       1,614       1,614  
Accrued interest receivable   22,425       23,117       19,900  
Other assets   59,685       60,542       62,158  
Total assets $ 5,006,199     $ 5,040,510     $ 4,975,810  
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Liabilities          
Deposits:          
Noninterest-bearing $ 1,045,697     $ 1,047,074     $ 1,125,823  
Interest-bearing   3,272,996       3,313,500       3,038,700  
Total deposits   4,318,693       4,360,574       4,164,523  
           
Securities sold under agreements to repurchase   29,330       31,864       38,729  
Federal Home Loan Bank advances   13,734       12,725       177,572  
Subordinated notes   39,514       39,494       39,435  
Junior subordinated debentures issued to capital trusts   52,819       52,804       52,760  
Other liabilities   42,640       46,368       51,939  
Total liabilities   4,496,730       4,543,829       4,524,958  
           
Stockholders’ Equity          
Common stock   328       328       327  
Surplus   296,430       296,054       294,875  
Retained earnings   290,386       278,353       241,777  
Accumulated other comprehensive income (loss)   (54,656 )     (56,048 )     (70,662 )
Treasury stock at cost   (23,019 )     (22,006 )     (15,465 )
Total stockholders’ equity   509,469       496,681       450,852  
Total liabilities and stockholders’ equity $ 5,006,199     $ 5,040,510     $ 4,975,810  
SHARES OF COMMON STOCK OUTSTANDING   31,559,366       31,612,888       31,865,868  
                       
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
           
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
           
LOANS          
Commercial and industrial $ 400,276     $ 402,206     $ 385,768  
Commercial real estate – owner occupied   289,992       294,967       303,522  
Commercial real estate – non-owner occupied   889,193       890,251       882,598  
Construction and land development   365,371       345,991       335,262  
Multi-family   429,951       421,573       375,536  
One-to-four family residential   484,335       485,948       482,442  
Agricultural and farmland   285,822       287,205       259,858  
Municipal, consumer, and other   240,543       217,821       219,669  
Total loans $ 3,385,483     $ 3,345,962     $ 3,244,655  
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
           
DEPOSITS          
Noninterest-bearing deposits $ 1,045,697     $ 1,047,074     $ 1,125,823  
Interest-bearing deposits:          
Interest-bearing demand   1,094,797       1,139,172       1,181,187  
Money market   769,386       802,685       680,642  
Savings   582,752       602,739       657,506  
Time   796,069       713,142       468,355  
Brokered   29,992       55,762       51,010  
Total interest-bearing deposits   3,272,996       3,313,500       3,038,700  
Total deposits $ 4,318,693     $ 4,360,574     $ 4,164,523  
                       
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
   
  Three Months Ended
  June 30, 2024   March 31, 2024   June 30, 2023
(dollars in thousands) Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *
                                   
ASSETS                                  
Loans $ 3,374,058     $ 53,274   6.35 %   $ 3,371,219     $ 53,020   6.33 %   $ 3,238,774     $ 48,189   5.97 %
Securities   1,195,287       6,907   2.32       1,221,447       6,847   2.25       1,384,180       7,680   2.23  
Deposits with banks   211,117       2,570   4.90       167,297       1,952   4.69       84,366       781   3.71  
Other   5,096       73   5.80       5,486       142   10.40       8,577       118   5.52  
Total interest-earning assets   4,785,558     $ 62,824   5.28 %     4,765,449     $ 61,961   5.23 %     4,715,897     $ 56,768   4.83 %
Allowance for credit losses   (40,814 )             (40,238 )             (39,484 )        
Noninterest-earning assets   283,103               278,253               299,622          
Total assets $ 5,027,847             $ 5,003,464             $ 4,976,035          
                                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                                  
Liabilities                                  
Interest-bearing deposits:                                  
Interest-bearing demand $ 1,123,592     $ 1,429   0.51 %   $ 1,127,684     $ 1,311   0.47 %   $ 1,224,285     $ 683   0.22 %
Money market   788,744       4,670   2.38       812,684       4,797   2.37       674,200       1,506   0.90  
Savings   592,312       393   0.27       611,224       443   0.29       687,014       189   0.11  
Time   763,507       7,117   3.75       664,498       5,925   3.59       447,025       1,933   1.73  
Brokered   38,213       524   5.51       82,150       1,117   5.47       1,451       12   3.44  
Total interest-bearing deposits   3,306,368       14,133   1.72       3,298,240       13,593   1.66       3,033,975       4,323   0.57  
Securities sold under agreements to repurchase   30,440       129   1.70       32,456       152   1.89       34,170       34   0.40  
Borrowings   13,466       121   3.60       13,003       125   3.87       173,040       2,189   5.07  
Subordinated notes   39,504       469   4.78       39,484       470   4.78       39,424       469   4.78  
Junior subordinated debentures issued to capital trusts   52,812       944   7.18       52,796       933   7.11       52,752       881   6.70  
Total interest-bearing liabilities   3,442,590     $ 15,796   1.85 %     3,435,979     $ 15,273   1.79 %     3,333,361     $ 7,896   0.95 %
Noninterest-bearing deposits   1,043,614               1,036,402               1,145,089          
Noninterest-bearing liabilities   39,806               37,107               43,080          
Total liabilities   4,526,010               4,509,488               4,521,530          
Stockholders’ Equity   501,837               493,976               454,505          
Total liabilities and stockholders’ equity $ 5,027,847             $ 5,003,464             $ 4,976,035          
                                   
Net interest income/Net interest margin (1)     $ 47,028   3.95 %       $ 46,688   3.94 %       $ 48,872   4.16 %
Tax-equivalent adjustment (2)       553   0.05           575   0.05           715   0.06  
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
    $ 47,581   4.00 %       $ 47,263   3.99 %       $ 49,587   4.22 %
Net interest rate spread (4)         3.43 %           3.44 %           3.88 %
Net interest-earning assets (5) $ 1,342,968             $ 1,329,470             $ 1,382,536          
Ratio of interest-earning assets to interest-bearing liabilities   1.39               1.39               1.41          
Cost of total deposits         1.31 %           1.26 %           0.41 %
Cost of funds         1.42             1.37             0.71  

____________________________________

  • 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 “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial 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.

HBT Financial, Inc.
Unaudited Consolidated Financial Summary
   
  Six Months Ended
  June 30, 2024   June 30, 2023
(dollars in thousands) Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *
                       
ASSETS                      
Loans $ 3,372,640     $ 106,294   6.34 %   $ 3,126,173     $ 91,300   5.89 %
Securities   1,208,367       13,754   2.29       1,397,821       15,493   2.24  
Deposits with banks   189,207       4,522   4.81       88,343       1,520   3.47  
Other   5,291       215   8.18       8,004       234   5.89  
Total interest-earning assets   4,775,505     $ 124,785   5.25 %     4,620,341     $ 108,547   4.74 %
Allowance for credit losses   (40,526 )             (36,410 )        
Noninterest-earning assets   280,676               287,314          
Total assets $ 5,015,655             $ 4,871,245          
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY                      
Liabilities                      
Interest-bearing deposits:                      
Interest-bearing demand $ 1,125,638     $ 2,740   0.49 %   $ 1,227,447     $ 1,141   0.19 %
Money market   800,714       9,467   2.38       654,514       2,441   0.75  
Savings   601,768       836   0.28       698,375       367   0.11  
Time   714,003       13,042   3.67       402,151       2,736   1.37  
Brokered   60,181       1,641   5.48       729       12   3.44  
Total interest-bearing deposits   3,302,304       27,726   1.69       2,983,216       6,697   0.45  
Securities sold under agreements to repurchase   31,448       281   1.80       36,879       72   0.39  
Borrowings   13,235       246   3.73       143,632       3,486   4.89  
Subordinated notes   39,494       939   4.78       39,414       939   4.81  
Junior subordinated debentures issued to capital trusts   52,804       1,877   7.15       50,183       1,644   6.61  
Total interest-bearing liabilities   3,439,285     $ 31,069   1.82 %     3,253,324     $ 12,838   0.80 %
Noninterest-bearing deposits   1,040,007               1,133,292          
Noninterest-bearing liabilities   38,457               46,181          
Total liabilities   4,517,749               4,432,797          
Stockholders’ Equity   497,906               438,448          
Total liabilities and stockholders’ equity $ 5,015,655               4,871,245          
                       
Net interest income/Net interest margin (1)     $ 93,716   3.95 %       $ 95,709   4.18 %
Tax-equivalent adjustment (2)       1,128   0.04           1,417   0.06  
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
    $ 94,844   3.99 %       $ 97,126   4.24 %
Net interest rate spread (4)         3.43 %           3.94 %
Net interest-earning assets (5) $ 1,336,220             $ 1,367,017          
Ratio of interest-earning assets to interest-bearing liabilities   1.39               1.42          
Cost of total deposits         1.28 %           0.33 %
Cost of funds         1.39             0.59  

____________________________________

  • 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 “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial 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.

HBT Financial, Inc.
Unaudited Consolidated Financial Summary
           
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
           
NONPERFORMING ASSETS          
Nonaccrual $ 8,425     $ 9,657     $ 7,534  
Past due 90 days or more, still accruing   7             1  
Total nonperforming loans   8,432       9,657       7,535  
Foreclosed assets   320       277       3,080  
Total nonperforming assets $ 8,752     $ 9,934     $ 10,615  
           
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 2,132     $ 2,676     $ 2,332  
           
Allowance for credit losses $ 40,806     $ 40,815     $ 37,814  
Loans, before allowance for credit losses   3,385,483       3,345,962       3,244,655  
           
CREDIT QUALITY RATIOS          
Allowance for credit losses to loans, before allowance for credit losses   1.21 %     1.22 %     1.17 %
Allowance for credit losses to nonaccrual loans   484.34       422.65       501.91  
Allowance for credit losses to nonperforming loans   483.94       422.65       501.84  
Nonaccrual loans to loans, before allowance for credit losses   0.25       0.29       0.23  
Nonperforming loans to loans, before allowance for credit losses   0.25       0.29       0.23  
Nonperforming assets to total assets   0.17       0.20       0.21  
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets   0.26       0.30       0.33  
                       
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
       
  Three Months Ended   Six Months Ended June 30,
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
                   
ALLOWANCE FOR CREDIT LOSSES                  
Beginning balance $ 40,815     $ 40,048     $ 38,776     $ 40,048     $ 25,333  
Adoption of ASC 326                           6,983  
PCD allowance established in acquisition                           1,247  
Provision for credit losses   677       560       (1,080 )     1,237       4,021  
Charge-offs   (870 )     (227 )     (179 )     (1,097 )     (321 )
Recoveries   184       434       297       618       551  
Ending balance $ 40,806     $ 40,815     $ 37,814     $ 40,806     $ 37,814  
                   
Net charge-offs (recoveries) $ 686     $ (207 )   $ (118 )   $ 479     $ (230 )
Average loans   3,374,058       3,371,219       3,238,774       3,372,640       3,126,173  
                   
Net charge-offs (recoveries) to average loans *   0.08 %   (0.02)%   (0.01)%     0.03 %   (0.01)%

____________________________________

  • Annualized measure.
  Three Months Ended   Six Months Ended June 30,
(dollars in thousands) June 30,
2024
  March 31,
2024
  June 30,
2023
   2024    2023
                   
PROVISION FOR CREDIT LOSSES                  
Loans (1) $ 677   $ 560     $ (1,080 )   $ 1,237   $ 4,021
Unfunded lending-related commitments (1)   499     (33 )     650       466     1,159
Debt securities             200           800
Total provision for credit losses $ 1,176   $ 527     $ (230 )   $ 1,703   $ 5,980

____________________________________
(1)   Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets
    Three Months Ended   Six Months Ended June 30,
(dollars in thousands)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
Net income   $ 18,070     $ 15,258     $ 18,473     $ 33,328     $ 27,681  
Adjustments:                    
Acquisition expenses (1)                 (627 )           (13,691 )
Gains (losses) on closed branch premises           (635 )     75       (635 )     75  
Realized gains (losses) on sales of securities           (3,382 )           (3,382 )     (1,007 )
Mortgage servicing rights fair value adjustment     (97 )     80       141       (17 )     (483 )
Total adjustments     (97 )     (3,937 )     (411 )     (4,034 )     (15,106 )
Tax effect of adjustments (2)     28       1,122       112       1,150       4,156  
Total adjustments after tax effect     (69 )     (2,815 )     (299 )     (2,884 )     (10,950 )
Adjusted net income   $ 18,139     $ 18,073     $ 18,772     $ 36,212     $ 38,631  
                     
Average assets   $ 5,027,847     $ 5,003,464     $ 4,976,035     $ 5,015,655     $ 4,871,245  
                     
Return on average assets *     1.45 %     1.23 %     1.49 %     1.34 %     1.15 %
Adjusted return on average assets *     1.45       1.45       1.51       1.45       1.60  

____________________________________

  • Annualized measure.

(1)   Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
(2)   Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share — Basic and Diluted
    Three Months Ended   Six Months Ended June 30,
(dollars in thousands, except per share amounts)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024    2023 
                     
Numerator:                    
Net income   $ 18,070   $ 15,258   $ 18,473     $ 33,328   $ 27,681  
Earnings allocated to participating securities (1)             (11 )         (16 )
Numerator for earnings per share – basic and diluted   $ 18,070   $ 15,258   $ 18,462     $ 33,328   $ 27,665  
                     
Adjusted net income   $ 18,139   $ 18,073   $ 18,772     $ 36,212   $ 38,631  
Earnings allocated to participating securities (1)             (10 )         (23 )
Numerator for adjusted earnings per share – basic and diluted   $ 18,139   $ 18,073   $ 18,762     $ 36,212   $ 38,608  
                     
Denominator:                    
Weighted average common shares outstanding     31,579,457     31,662,954     31,980,133       31,621,205     31,481,439  
Dilutive effect of outstanding restricted stock units     87,354     140,233     99,850       113,794     84,981  
Weighted average common shares outstanding, including all dilutive potential shares     31,666,811     31,803,187     32,079,983       31,734,999     31,566,420  
                     
Earnings per share – Basic   $ 0.57   $ 0.48   $ 0.58     $ 1.05   $ 0.88  
Earnings per share – Diluted   $ 0.57   $ 0.48   $ 0.58     $ 1.05   $ 0.88  
                     
Adjusted earnings per share – Basic   $ 0.57   $ 0.57   $ 0.59     $ 1.15   $ 1.23  
Adjusted earnings per share – Diluted   $ 0.57   $ 0.57   $ 0.58     $ 1.14   $ 1.22  

____________________________________
(1)   The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.  

Reconciliation of Non-GAAP Financial Measures –
Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)
    Three Months Ended   Six Months Ended June 30,
(dollars in thousands)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
                     
Net interest income (tax-equivalent basis)                    
Net interest income   $ 47,028     $ 46,688     $ 48,872     $ 93,716     $ 95,709  
Tax-equivalent adjustment (1)     553       575       715       1,128       1,417  
Net interest income (tax-equivalent basis) (1)   $ 47,581     $ 47,263     $ 49,587     $ 94,844     $ 97,126  
                     
Net interest margin (tax-equivalent basis)                    
Net interest margin *     3.95 %     3.94 %     4.16 %     3.95 %     4.18 %
Tax-equivalent adjustment * (1)     0.05       0.05       0.06       0.04       0.06  
Net interest margin (tax-equivalent basis) * (1)     4.00 %     3.99 %     4.22 %     3.99 %     4.24 %
                     
Average interest-earning assets   $ 4,785,558     $ 4,765,449     $ 4,715,897     $ 4,775,505     $ 4,620,341  

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  • Annualized measure.

(1)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax-equivalent Basis)
    Three Months Ended   Six Months Ended June 30,
(dollars in thousands)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
                     
Efficiency ratio (tax-equivalent basis)                    
Total noninterest expense   $ 30,509     $ 31,268     $ 33,973     $ 61,777     $ 69,906  
Less: amortization of intangible assets     710       710       720       1,420       1,230  
Noninterest expense excluding amortization of intangible assets   $ 29,799     $ 30,558     $ 33,253     $ 60,357     $ 68,676  
                     
Net interest income   $ 47,028     $ 46,688     $ 48,872     $ 93,716     $ 95,709  
Total noninterest income     9,610       5,626       9,914       15,236       17,351  
Operating revenue     56,638       52,314       58,786       108,952       113,060  
Tax-equivalent adjustment (1)     553       575       715       1,128       1,417  
Operating revenue (tax-equivalent basis) (1)   $ 57,191     $ 52,889     $ 59,501     $ 110,080     $ 114,477  
                     
Efficiency ratio     52.61 %     58.41 %     56.57 %     55.40 %     60.74 %
Efficiency ratio (tax-equivalent basis) (1)     52.10       57.78       55.89       54.83       59.99  

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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%.

Reconciliation of Non-GAAP Financial Measures –
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data)   June 30,
2024
  March 31,
2024
  June 30,
2023
             
Tangible Common Equity            
Total stockholders’ equity   $ 509,469     $ 496,681     $ 450,852  
Less: Goodwill     59,820       59,820       59,876  
Less: Intangible assets, net     19,262       19,972       22,122  
Tangible common equity   $ 430,387     $ 416,889     $ 368,854  
             
Tangible Assets            
Total assets   $ 5,006,199     $ 5,040,510     $ 4,975,810  
Less: Goodwill     59,820       59,820       59,876  
Less: Intangible assets, net     19,262       19,972       22,122  
Tangible assets   $ 4,927,117     $ 4,960,718     $ 4,893,812  
             
Total stockholders’ equity to total assets     10.18 %     9.85 %     9.06 %
Tangible common equity to tangible assets     8.74       8.40       7.54  
             
Shares of common stock outstanding     31,559,366       31,612,888       31,865,868  
             
Book value per share   $ 16.14     $ 15.71     $ 14.15  
Tangible book value per share     13.64       13.19       11.58  
                         
Reconciliation of Non-GAAP Financial Measures –
Return on Average Tangible Common Equity,
Adjusted Return on Average Stockholders’ Equity and Adjusted Return on Average Tangible Common Equity
    Three Months Ended   Six Months Ended June 30,
(dollars in thousands)   June 30,
2024
  March 31,
2024
  June 30,
2023
   2024     2023 
                     
Average Tangible Common Equity                    
Total stockholders’ equity   $       501,837      $       493,976      $       454,505      $       497,906      $       438,448   
Less: Goodwill               59,820                  59,820                  59,876                  59,820                  54,643   
Less: Intangible assets, net               19,605                  20,334                  22,520                  19,970                  19,097   
Average tangible common equity   $       422,412      $       413,822      $       372,109      $       418,116      $       364,708   
                     
Net income   $         18,070      $         15,258      $         18,473      $         33,328      $         27,681   
Adjusted net income               18,139                  18,073                  18,772                  36,212                  38,631   
                     
Return on average stockholders’ equity *     14.48  %     12.42  %     16.30  %     13.46  %     12.73  %
Return on average tangible common equity *     17.21        14.83        19.91        16.03        15.31   
                     
Adjusted return on average stockholders’ equity *     14.54  %     14.72  %     16.57  %     14.63  %     17.77  %
Adjusted return on average tangible common equity *     17.27        17.57        20.23        17.42        21.36   

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  • Annualized measure.


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