HBT Financial, Inc. Announces Third Quarter 2026 Financial Results

Third Quarter Highlights

• Net income of $31.4 million, or $0.86 per diluted share; return on average assets (“ROAA”) of 1.85%; return on average stockholders' equity (“ROAE”) of 16.17%; and return on average tangible common equity (“ROATCE”)(1) of 19.27%
• Adjusted net income(1) of $31.4 million, or $0.86 per diluted share; adjusted ROAA(1) of 1.85%; adjusted ROAE(1) of 16.18%; and adjusted ROATCE(1) of 19.29%
• Asset quality remains strong, with nonperforming assets to total assets of 0.16% and net recoveries to average loans of 0.04%, on an annualized basis
• Net interest margin increased 3 basis points to 4.35%, and net interest margin (tax-equivalent basis)(1) increased 2 basis points to 4.40%

BLOOMINGTON Ill., Oct. 26, 2026 -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company”, “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $31.4 million, or $0.86 diluted earnings per share, for the third quarter of 2026. This compares to net income of $27.8 million, or $0.76 diluted earnings per share, for the second quarter of 2026, and net income of $19.8 million, or $0.63 diluted earnings per share, for the third quarter of 2025.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “Our third quarter results were very strong with adjusted net income(1) of $31.4 million, or $0.86 per diluted share, an increase of 10.1% over the prior quarter. Profitability also remained strong with adjusted ROAA(1) of 1.85% and adjusted ROATCE(1) of 19.29%. Our net interest margin on a tax equivalent basis(1) was 4.40%, an increase of 2 basis points compared to the second quarter of 2026, as maturing fixed-rate loans repriced higher and securities cash flows were reinvested at higher rates, slightly offset by a higher cost of funds and lower loan accretion income. Noninterest income was above expectations, aided by wealth management, seasonally higher mortgage income, and a nonrecurring $0.4 million excise tax refund. Expenses were well controlled during the quarter, with an efficiency ratio on a tax equivalent basis(1) of 48.24%. Asset quality also remains exceptional, with nonperforming assets to total assets of 0.16%, and net recoveries to average loans of 0.04%, on an annualized basis, during the quarter. Finally, our balance sheet remains strong with all regulatory capital ratios increasing during the quarter, including a common equity tier 1 capital ratio of 12.94% and total capital to risk-weighted assets ratio of 16.48%.

Integration planning for the acquisition of Tri-County Financial Group, Inc. is progressing well, and we anticipate this transaction closing early in the first quarter of 2027, subject to their stockholder approval and regulatory approvals. We have been very impressed with their people and overall organization, and we are looking forward to a successful closing.”
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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, net earnings (losses) on closed or sold operations, losses on extinguishment of debt, gains (losses) on closed branch premises, realized gains (losses) on sales of securities, mortgage servicing rights (“MSR”) fair value adjustments, and the tax effect of these pre-tax adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $31.4 million, or $0.86 adjusted diluted earnings per share, for the third quarter of 2026. This compares to adjusted net income of $28.5 million, or $0.78 adjusted diluted earnings per share, for the second quarter of 2026, and adjusted net income of $20.5 million, or $0.65 adjusted diluted earnings per share, for the third quarter of 2025. See “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Pending Acquisition of Tri-County Financial Group, Inc. and Completed Transaction with CNB Bank Shares, Inc.

On August 10, 2026, HBT Financial and Tri-County Financial Group, Inc. (“TYFG” or “Tri-County”), the holding company for First State Bank (“FSB”), jointly announced the signing of a definitive agreement pursuant to which HBT Financial will acquire TYFG and FSB. The acquisition will increase HBT Financial’s density in its central Illinois and Chicago MSA markets. The transaction is expected to close early in the first quarter of 2027, subject to their stockholder approval and regulatory approvals.

CNB Bank Shares, Inc. (“CNB”) and TYFG acquisition-related expenses during the second and third quarter of 2026 and during the nine months ended September 30, 2026 are summarized below. There were no acquisition-related expenses during the third quarter of 2025 or during the nine months ended September 30, 2025.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2026 was $70.3 million, an increase of 1.8% from $69.1 million for the second quarter of 2026. The increase was primarily attributable to higher yields on loans and higher average loan balances. A $0.5 million increase in loan fees and a $0.2 million increase in nonaccrual interest recoveries further contributed to the overall increase. Partially offsetting these increases were an $0.8 million decrease in acquired loan discount accretion, which totaled $1.3 million for the third quarter of 2026, and higher funding costs.

Relative to the third quarter of 2025, net interest income increased 40.7% from $50.0 million. The increase was primarily attributable to higher average interest-earning asset balances following the CNB merger and improved yields on debt securities and loans. Additionally, a $0.4 million increase in acquired loan discount accretion, a $0.4 million increase in loan fees, and a $0.3 million increase in nonaccrual interest recoveries further contributed to the improvement.

Net interest margin for the third quarter of 2026 was 4.35%, compared to 4.32% for the second quarter of 2026, while net interest margin (tax-equivalent basis)(1) for the third quarter of 2026 was 4.40%, compared to 4.38% for the second quarter of 2026. These increases were primarily attributable to improved yields on loans, which increased 5 basis points to 6.43%. These increases were partially offset by higher funding costs, which increased 4 basis points to 1.36%, driven primarily by increases in benchmark interest rates.

Relative to the third quarter of 2025, net interest margin increased 22 basis points from 4.13% and net interest margin (tax-equivalent basis)(1) increased 22 basis points from 4.18%. These increases were primarily attributable to improved yields on debt securities and loans as well as a more favorable interest-earning asset mix, which were partially offset by higher funding costs.
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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 third quarter of 2026 was $14.2 million, a 20.2% increase from $11.8 million for the second quarter of 2026. The increase was primarily attributable to changes in the MSR fair value adjustment, with a $1.5 million positive MSR fair value adjustment included in the third quarter of 2026 results compared to an $0.8 million negative MSR fair value adjustment included in the second quarter of 2026 results. Additionally, a $0.4 million nonrecurring refund of stock repurchase excise tax as a result of a change in tax regulation included in other noninterest income contributed to the improvement.

Relative to the third quarter of 2025, noninterest income increased 44.6% from $9.8 million. The increase was primarily attributable to changes in the MSR fair value adjustment, with a $1.5 million positive MSR fair value adjustment included in the third quarter of 2026 results compared to a $0.5 million negative MSR fair value adjustment included in the third quarter of 2025 results. Additionally, an $0.8 million increase in wealth management fees, a $0.6 million increase in service charges on deposit accounts, and a $0.5 million increase in card income, all primarily driven by a larger customer base following the CNB merger, contributed to the increase.

Noninterest Expense

Noninterest expense for the third quarter of 2026 was $42.7 million, a 0.5% increase from the second quarter of 2026. Acquisition-related noninterest expenses totaled $1.0 million during the third quarter of 2026, compared to $0.3 million during the second quarter of 2026. Excluding acquisition-related expenses, noninterest expense for the third quarter of 2026 was $41.7 million, a $0.5 million decrease from the second quarter of 2026. The decrease was primarily attributable to a $1.1 million decrease in salaries expense, which was partially offset by a $0.4 million increase in occupancy expense, primarily due to planned building maintenance and upgrades, and a $0.3 million increase in employee benefits expense, driven by higher medical benefits costs.

Relative to the third quarter of 2025, noninterest expense increased 31.2% from $32.5 million. Excluding acquisition-related expenses, the $9.2 million increase in noninterest expense was primarily attributable to higher base costs following the CNB merger, including a $5.8 million increase in salaries and employee benefits expenses, which were also driven higher by annual merit increases and higher medical benefits costs, as well as increases in occupancy, data processing, and marketing expenses.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $4.78 billion at September 30, 2026, compared with $4.75 billion at June 30, 2026, and $3.40 billion at September 30, 2025. The $30.3 million increase from June 30, 2026 was primarily due to new fundings and draws on existing loans within the construction and land development category, partially offset by seasonal reductions of $8.8 million on grain elevator lines within the commercial and industrial category, as well as several payoffs due to refinance within the multifamily category.

Deposits

Total deposits were $5.75 billion at September 30, 2026, compared with $5.76 billion at June 30, 2026, and $4.35 billion at September 30, 2025. The $5.6 million decrease from June 30, 2026 was primarily attributable to lower balances maintained in existing retail accounts and seasonally lower public funds balances, which were partially offset by an increase in business account balances. Additionally, $60.0 million of wealth management customer reciprocal deposits were moved on-balance sheet during the third quarter of 2026.

Asset Quality

Nonperforming assets totaled $10.8 million, or 0.16% of total assets, at September 30, 2026, compared with $9.9 million, or 0.15% of total assets, at June 30, 2026, and $8.6 million, or 0.17% of total assets, at September 30, 2025. The majority of the $0.9 million increase in nonperforming assets from June 30, 2026 was attributable to increases in nonaccrual loan balances in the one-to-four family residential category. Additionally, of the $10.1 million of nonperforming loans held as of September 30, 2026, $2.4 million were either wholly or partially guaranteed by the U.S. government.

The Company recorded a negative provision for credit losses of $0.6 million for the third quarter of 2026. The negative provision for credit losses primarily reflects a $1.9 million decrease in required reserves driven by changes within the portfolio, which included net recoveries of $0.5 million; a $0.6 million decrease in required reserves driven by changes in the economic forecast; a $0.1 million decrease in specific reserves; and a $2.0 million increase in required reserves resulting from changes in qualitative factors.

The Company had net recoveries of $0.5 million, or 0.04% of average loans on an annualized basis, for the third quarter of 2026, compared to net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2026, and net charge-offs of $0.1 million, or 0.02% of average loans on an annualized basis, for the third quarter of 2025.

The Company’s allowance for credit losses was 1.26% of total loans and 599% of nonperforming loans at September 30, 2026, compared with 1.27% of total loans and 666% of nonperforming loans at June 30, 2026. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $6.6 million as of September 30, 2026, compared with $6.6 million as of June 30, 2026.

Capital

As of September 30, 2026, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

The ratio of tangible common equity to tangible assets(1) decreased to 9.56% as of September 30, 2026, from 9.69% as of June 30, 2026, and tangible book value per share(1) decreased by $0.26 to $17.34 as of September 30, 2026, when compared to June 30, 2026. The decrease in tangible book value per share was primarily driven by a decrease in accumulated other comprehensive income as a result of higher net unrealized losses on available-for-sale debt securities as market interest rates increased during the quarter.

During the third quarter of 2026, the Company did not repurchase shares of its common stock under its stock repurchase program. The Company is currently subject to a blackout period restricting repurchases of its common stock, which will remain in effect until the conclusion of the TYFG stockholder vote on the proposed merger scheduled for October 29, 2026. The Company’s Board of Directors has authorized the repurchase of up to $30.0 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2027. As of September 30, 2026, the Company had $14.0 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, eastern Iowa, and suburban St. Louis through 83 full-service branches. As of September 30, 2026, HBT Financial had total assets of $6.7 billion, total loans of $4.8 billion, and total deposits of $5.8 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 adjusted net income, adjusted earnings per share, adjusted ROAA, pre-provision net revenue, pre-provision net revenue less charge-offs (recoveries), adjusted pre-provision net revenue, adjusted pre-provision net revenue less charge-offs (recoveries), net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), adjusted efficiency ratio (tax-equivalent basis), the ratio of tangible common equity to tangible assets, tangible book value per share, adjusted ROAE, ROATCE, 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 and the negative forms of such words. 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: (1) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures, global energy market conditions, the threat or implementation of tariffs, immigration enforcement and changes in foreign policy); (2) policy changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies, including executive orders; (3) 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, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control), and the response of the local, state and national governments to any such adverse external events; (4) 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; (5) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company's commercial borrowers; (6) changes in interest rates, including as a result of the recent increase in the benchmark federal funds rate by the Federal Reserve, and prepayment rates of the Company’s assets; (7) increased competition in the financial services sector, including from non-bank competitors such as credit unions, private credit firms, fintech companies, and digital asset service providers, and the inability to attract new customers; (8) technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers; (9) emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; (10) 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, including the acquisition of CNB; (11) the loss of key executives and employees, talent shortages and employee turnover; (12) changes in consumer spending; (13) unexpected outcomes or costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (14) 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; (15) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (16) 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; (17) the overall health of the local and national real estate market; (18) the ability to maintain an adequate level of allowance for credit losses on loans; (19) 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; (20) the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; (21) 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; (22) the level of nonperforming assets on our balance sheet; (23) interruptions involving our information technology and communications systems or those of our third-party servicers; (24) 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; (25) the effectiveness of the Company’s risk management framework; (26) the possibility that stockholders of TYFG may not approve the merger agreement; (27) 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; (28) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (29) the diversion of management time on transaction-related issues; (30) the ultimate timing, outcome and results of integrating the operations of TYFG into those of HBT; (31) the effects of the merger in HBT’s future financial condition, results of operations, strategy and plans; (32) regulatory approvals of the transaction; and (33) 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.

Important Information and Where to Find It

In connection with the proposed Tri-County transaction, HBT Financial has filed and will file materials with the SEC, including a Registration Statement on Form S-4 of HBT Financial that included a proxy statement of Tri-County and a prospectus of HBT Financial. The Registration Statement has been declared effective by the SEC, and on or about September 18, 2026, HBT Financial and Tri-County mailed a definitive proxy statement/prospectus to the stockholders of Tri-County in connection with its special meeting of stockholders to be held on October 29, 2026. This news release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT Financial and Tri-County may file with the SEC and send to Tri-County’s stockholders in connection with the proposed transaction. TRI-COUNTY’S STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT FINANCIAL AND TRI-COUNTY WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT HBT FINANCIAL, TRI-COUNTY, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors may obtain free copies of the Registration Statement and the definitive proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT Financial and Tri-County with the SEC (when they become available), through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT Financial are available free of charge from HBT Financial’s website at https://ir.hbtfinancial.com or by contacting HBT Financial’s Investor Relations Department at [email protected]. Copies of documents filed with the SEC by Tri-County are not available on Tri-County’s website, but will be provided free of charge upon request. To request such documents, please call (815) 538-2265.

Participants in the Proxy Solicitation

HBT Financial, Tri-County and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Tri-County’s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT Financial is included in its definitive proxy statement for its 2026 annual meeting filed with the SEC on April 8, 2026. Information regarding the executive officers and directors of Tri-County and additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, is set forth in the Registration Statement and definitive proxy statement/prospectus filed, and other materials when they are filed, with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.

No Offer or Solicitation

Communications in this news release do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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

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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 income tax rate of 9.5%.

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*  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.

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(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.

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*  Annualized measure.

(1)   Assumes a federal income tax rate of 21% and a state income tax rate of 9.5%, and excludes non-deductible acquisition expenses.

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*  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%.