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HBT Financial, Inc. (HBT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered solid profitability with GAAP net income of $19.1M ($0.60 diluted EPS) and adjusted net income of $19.3M ($0.61 EPS), alongside NIM expansion to 4.12% (4.16% tax-equivalent) .
  • Primary EPS beat S&P Global consensus: $0.61 actual vs $0.564 estimate; revenue modestly beat as well: $57.44M actual vs $57.31M estimate. Values retrieved from S&P Global*.
  • Asset quality improved: nonperforming assets fell to 0.11% of total assets and net charge-offs were 0.05% of average loans (annualized) .
  • Tangible book value per share rose 4.3% QoQ to $15.43 and capital ratios increased, supporting optionality for opportunistic M&A and repurchases ($15M authorization remaining) .
  • Key catalyst: visible NIM tailwinds from lower funding costs and repricing assets; management guides Q2 net interest income up slightly with flat deposits and noninterest income up slightly .

What Went Well and What Went Wrong

What Went Well

  • Net interest income increased 2.8% QoQ to $48.7M; NIM up 16 bps to 4.12% on higher earning-asset yields and lower funding costs (cost of funds -7 bps to 1.32%); nonaccrual interest recoveries and loan fees added ~5 bps to NIM .
  • Asset quality remained exceptional: NPAs decreased to $5.6M (0.11% of assets) and net charge-offs were just 0.05% of average loans annualized; ACL covered 825% of NPLs .
  • Balance sheet strength and tangible equity growth: tangible book value per share increased $0.63 QoQ to $15.43; CET1 13.48%, Tier 1 leverage 11.64% .
    • CEO: “Our credit discipline, strong profitability and solid balance sheet give us confidence that we are prepared for a variety of economic environments.”

What Went Wrong

  • Noninterest income declined 20.0% QoQ to $9.3M, primarily due to MSR fair value moving from a +$1.3M adjustment in Q4 to -$0.3M in Q1; declines also in wealth management fees, BOLI income, and card income .
  • Noninterest expense rose 3.3% QoQ to $31.9M on higher salaries (seasonal vacation accruals and March merit increases) and employee benefits (medical costs), pressuring efficiency ratio to 53.85% (53.35% TE) from 51.16% (50.68% TE) .
  • GAAP net income and ROATCE ticked down QoQ: net income $19.1M vs $20.3M, ROATCE 16.20% vs 17.40%, reflecting expense and MSR headwinds even as core NII improved .

Financial Results

Income Statement and EPS

MetricQ1 2024Q4 2024Q1 2025
Operating Revenue ($USD Millions)$52.31 $59.03 $58.01
Net Interest Income ($USD Millions)$46.69 $47.40 $48.71
Noninterest Income ($USD Millions)$5.63 $11.63 $9.31
GAAP Diluted EPS ($USD)$0.48 $0.64 $0.60
Adjusted Diluted EPS ($USD)$0.57 $0.62 $0.61

Margins and Profitability

MetricQ1 2024Q4 2024Q1 2025
Net Interest Margin (%)3.94 3.96 4.12
NIM (Tax-Equivalent) (%)3.99 4.01 4.16
Efficiency Ratio (%)58.41 51.16 53.85
Efficiency Ratio (TE) (%)57.78 50.68 53.35
ROAA (%)1.23 1.61 1.54
ROATCE (%)14.83 17.40 16.20

Balance Sheet and Asset Quality

MetricQ1 2024Q4 2024Q1 2025
Total Deposits ($USD Millions)$4,360.57 $4,318.25 $4,384.59
Total Loans ($USD Millions)$3,345.96 $3,466.15 $3,461.78
Loan-to-Deposit Ratio (%)76.73 80.27 78.95
Nonperforming Assets / Total Assets (%)0.20 0.16 0.11
Net Charge-offs to Avg Loans (annualized, %)(0.02) 0.08 0.05
ACL / Loans (%)1.22 1.21 1.22

Segment / Portfolio Breakdown (Loans at period-end)

Segment ($USD Millions)Q1 2025
Commercial & Industrial$441.26
CRE – Owner Occupied$321.99
CRE – Non-Owner Occupied$891.02
Construction & Land Development$376.05
Multi-family$424.10
1–4 Family Residential$455.38
Agricultural & Farmland$292.24
Municipal, Consumer & Other$259.75
Total Loans$3,461.78

Estimates vs Actuals (S&P Global)

MetricQ1 2025 ConsensusQ1 2025 Actual
Primary EPS ($USD)0.564*0.61*
Revenue ($USD)$57.31M*$57.44M*

Values retrieved from S&P Global*.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest IncomeQ2 2025—Up slightly vs Q1 2025New
DepositsQ2 2025—Flat vs Q1 2025New
Noninterest IncomeQ2 2025—Increase slightly vs Q1 2025New
Noninterest ExpenseFY 2025 (per quarter)—$31M–$33M per quarterNew
Asset Quality2025—Expected solid; potential normalization and CECL volatility if macro shiftsNew
Stock RepurchaseThrough 1/1/2026$15M program authorized$15M remaining; used opportunisticallyMaintained

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in the document catalog; themes below derive from management’s press release/presentation commentary.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Net Interest Margin and Funding CostsNIM expanded to 4.03% TE; funding costs up 5 bps to 1.47% NIM resilient at 4.01% TE; cost of funds down 8 bps to 1.39% NIM up to 4.16% TE; cost of funds down to 1.32%; ~5 bps from nonaccrual recoveries/fees Improving NIM; easing funding costs
Deposit Base/MixShift toward higher-cost products; balances down QoQ Retail balances up; brokered deposits decreased Deposits up 1.5% QoQ; repurchase agreements moved to demand deposits; highly granular base Stabilizing/low-cost mix
Asset QualityNPAs ~0.17%; low charge-offs NPAs 0.16%; net charge-offs 0.08% NPAs 0.11%; net charge-offs 0.05%; ACL/NPL ~825% Strengthening
Noninterest Income/MSRNegative MSR FV adjustment (-$1.5M) Positive MSR FV adjustment (+$1.3M) Negative MSR FV adjustment (-$0.3M) Volatile around rate moves
Capital/TBVPSTCE/TA 9.35%; TBVPS increased QoQ Capital ratios up; TBVPS $14.80 CET1 13.48%; TBVPS $15.43 (+4.3% QoQ) Accretive capital build
Outlook—Confident positioning for 2025 Q2 NII up slightly; deposits flat; NI income up slightly; expenses $31–$33M Constructive near term

Management Commentary

  • CEO (Q1 2025): “We are off to a great start in 2025 with strong first quarter results… Our credit discipline, strong profitability and solid balance sheet give us confidence that we are prepared for a variety of economic environments.”
  • On NIM drivers: “Tax-equivalent NIM increased by 15 bps… 5 bps of that increase related to higher nonaccrual interest recoveries and loan fees, as average loan balances were higher… and deposits repriced lower.”
  • On balance sheet strength and optionality: “Our capital levels and operational structure support attractive acquisition opportunities should the right opportunity arise and markets stabilize.”

Q&A Highlights

  • Not available; a Q1 2025 earnings call transcript was not found in the document catalog for HBT.

Estimates Context

  • Primary EPS beat: $0.61 actual vs $0.564 consensus; revenue also slightly beat: $57.44M actual vs $57.31M consensus. Values retrieved from S&P Global*.
  • Implications: Consensus likely moves up modestly for FY/Q2 on visible NIM tailwinds and management’s guide for slight NII and NI income increases, though analysts may temper noninterest income given MSR FV volatility and note expense range signaling steadier OpEx cadence .

Key Takeaways for Investors

  • Core earnings resilience: NII growth (+$1.3M QoQ) and NIM expansion underscore funding-cost leverage and asset repricing dynamics; supports near-term upside to NII .
  • Quality credit profile: NPAs at 0.11% and low charge-offs; ACL robust vs NPLs (~825%) — a defensive underpinning amid uncertain macro .
  • Capital accretion: TBVPS up 4.3% QoQ; CET1 13.48% and leverage 11.64% provide strategic optionality (M&A, buybacks) with $15M authorization in place .
  • Expense cadence: Expect $31–$33M per quarter in 2025; Q1 uptick driven by seasonal accruals and medical costs — monitor trajectory vs guide .
  • Noninterest income volatility: MSR FV remains rate-sensitive; hedging or mix shifts could smooth earnings variability .
  • Deposit strategy: Granular, low-cost base with declining spot rates and transitions from repos to deposits — supports NIM continuity .
  • Near-term trade: Lean long on NIM/funding tailwinds and guidance for NII up slightly; hedge MSR-linked volatility and watch CECL sensitivity if macro forecasts shift .
Sources: All company results, balance-sheet metrics, ratios, portfolio composition, and guidance derived from HBT’s Q1 2025 8-K/press release and investor presentation, and prior quarter press releases: **[775215_0001628280-25-018482_hbt-20250331ex991.htm:0]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:1]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:2]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:3]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:8]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:9]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:10]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:11]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:12]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:14]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:15]** **[775215_0001628280-25-018482_hbt-20250331ex991.htm:16]** **[775215_0001628280-25-018482_hbt-20250331ex992.htm:4]** **[775215_0001628280-25-018482_hbt-20250331ex992.htm:5]** **[775215_0001628280-25-018482_hbt-20250331ex992.htm:9]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_1]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_2]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_3]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_4]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_6]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_12]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_14]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_15]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_18]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_19]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_20]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_21]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_22]** **[775215_9e3cacb40f5d44fe9a097dea6137d0fc_23]** **[775215_21344f40251f4cab97d5ad44d177b06e_1]** **[775215_21344f40251f4cab97d5ad44d177b06e_3]** **[775215_21344f40251f4cab97d5ad44d177b06e_4]** **[775215_21344f40251f4cab97d5ad44d177b06e_13]** **[775215_21344f40251f4cab97d5ad44d177b06e_14]** **[775215_21344f40251f4cab97d5ad44d177b06e_18]** **[775215_21344f40251f4cab97d5ad44d177b06e_19]** **[775215_21344f40251f4cab97d5ad44d177b06e_26]** **[775215_c1b8e42a2c4b43788ec340b00330b273_0]** **[775215_c1b8e42a2c4b43788ec340b00330b273_2]** **[775215_c1b8e42a2c4b43788ec340b00330b273_3]** **[775215_c1b8e42a2c4b43788ec340b00330b273_4]** **[775215_c1b8e42a2c4b43788ec340b00330b273_5]**