On October 23, 2023, HBT Financial Inc. (HBT, Financial) announced its financial results for the third quarter of 2023. The company reported a net income of $19.7 million, or $0.62 per diluted share, a significant increase compared to the net income of $15.6 million, or $0.54 per diluted share, for the third quarter of 2022. The adjusted net income for the quarter was $20.3 million, or $0.63 per diluted share.
Financial Highlights
HBT Financial's asset quality remained strong with nonperforming assets to total assets of 0.16%. The company's net interest margin was 4.07% and the net interest margin (tax-equivalent basis) was 4.13%. The company's balance sheet strength continues to show with a low cost of funds of 0.96% and credit quality remaining solid.
J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “This was another strong quarter of profitability with a ROAA of 1.58%, a ROATCE of 20.70%, and our highest quarterly diluted earnings per share since our IPO in October of 2019. Our balance sheet strength continues to show with our core deposit franchise allowing us to maintain a low cost of funds of 0.96% and credit quality remaining solid with nonperforming assets at only 0.16% of total assets."
Income Statement Summary
Net interest income for the third quarter of 2023 was $48.3 million, a slight decrease from $48.9 million for the second quarter of 2023. The decrease was primarily attributable to an increase in funding costs which were largely offset by higher yields on loans and a more favorable interest-earning asset mix. Noninterest income for the third quarter of 2023 was $9.5 million, a decrease of 4.3% from $9.9 million for the second quarter of 2023. Noninterest expense for the third quarter of 2023 was $30.7 million, a 9.7% decrease from $34.0 million for the second quarter of 2023.
Balance Sheet Summary
Total loans outstanding, before allowance for credit losses, were $3.34 billion at the end of September 2023, compared with $3.24 billion at the end of June 2023 and $2.58 billion at the end of September 2022. Total deposits were $4.20 billion at the end of September 2023, compared with $4.16 billion at the end of June 2023 and $3.64 billion at the end of September 2022.
Outlook
With a strong capital base, HBT Financial is well-positioned for future capital deployment. The company's consistent financial performance is expected to continue enhancing the value of its franchise.
