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HF

HBT Financial, Inc. (HBT)·Q3 2025 Earnings Summary

Executive Summary

  • Solid quarter with EPS beat and resilient margin: Diluted EPS was $0.63 on $59.84M operating revenue; net interest margin held at 4.13%. Adjusted EPS of $0.65 was the highest since IPO, driven by higher adjusted PPNR and stable funding costs .
  • Estimates context: HBT beat S&P Global EPS consensus ($0.65 actual vs $0.62 est.) and was slightly below on revenue ($59.24M actual vs $60.25M est.). Expectation-beat narrative centers on operating efficiency and stable NIM, while revenue softness reflects lower loan fees and discount accretion; see table below (S&P Global) *.
  • Balance sheet and credit remained a strength: Loans grew to $3.40B (+6.2% annualized QoQ), deposits rose to $4.35B, NPAs were 0.17% of assets, and net charge-offs fell to 0.02% (annualized). Tangible book value per share increased $0.62 to $16.64; TCE/TA improved to 10.56% .
  • Strategic catalyst: Announced definitive agreement to acquire CNB Bank Shares; consideration is 1.0434 HBT shares or $27.73 in cash per CNB share (mixable), with aggregate cash of ~$33.83M and 5.51M shares reserved; closing targeted no earlier than Mar 31, 2026 pending approvals .

What Went Well and What Went Wrong

What Went Well

  • Margin and profitability resilience: NIM ticked down just 1 bp to 4.13% and adjusted ROAA/ROATCE of 1.61%/15.81% underscored strong core profitability .
  • Credit quality and capital: NPAs were 0.17% of assets; net charge-offs declined to 0.02% (annualized). CET1 rose to 14.35% and TCE/TA to 10.56%, supporting continued capital return and M&A capacity .
  • Management execution and loan growth return: Quarter-end loans increased 6.2% annualized; CEO noted “adjusted net income…our highest quarterly adjusted diluted EPS since becoming a public company,” with adjusted PPNR +2.2% QoQ and TBVPS +$0.62 QoQ .

What Went Wrong

  • Slight revenue miss vs Street: S&P Global shows revenue of $59.24M vs $60.25M consensus (≈1.7% miss), driven by slightly lower loan fees/discount accretion; NIM held but loan yields decreased 3 bps to 6.35% *.
  • Modest increase in noninterest expense: Expenses rose 1.9% QoQ to $32.5M, including a $0.4M loss on extinguishment of subordinated notes and higher occupancy from planned maintenance .
  • NPAs up sequentially: NPAs rose to $8.6M (0.17% of assets) from $6.5M (0.13%), though net charge-offs improved and reserves remain solid (ACL/loans 1.23%) .

Financial Results

Income Statement and Profitability (oldest → newest)

MetricQ3 2024Q2 2025Q3 2025
Operating Revenue ($M)$56.44 $58.80 $59.84
Net Interest Income ($M)$47.73 $49.66 $49.99
Noninterest Income ($M)$8.71 $9.14 $9.85
Noninterest Expense ($M)$31.32 $31.91 $32.51
Net Income ($M)$18.18 $19.23 $19.77
Diluted EPS ($)$0.57 $0.61 $0.63
NIM (%)3.98 4.14 4.13
ROAA (%)1.44 1.53 1.56
Efficiency Ratio (TE, %)53.71 52.61 52.68

Balance Sheet and Credit (period-end, $M; ratios in %)

MetricQ3 2024Q2 2025Q3 2025
Total Loans$3,369.83 $3,348.21 $3,400.03
Total Deposits$4,280.70 $4,306.53 $4,347.19
NPAs / Assets (%)0.17 0.13 0.17
NCOs / Avg Loans (ann.) (%)0.07 0.12 0.02
ACL / Loans (%)1.22 1.24 1.23
CET1 (%)13.15 14.26 14.35
TCE / TA (%)9.35 10.21 10.56

Estimates vs Actual (S&P Global)

MetricConsensusActualSurprise
EPS (Primary)$0.62*$0.65*+$0.03 (+4.8%)*
Revenue ($M)$60.25*$59.24*-$1.01 (-1.7%)*

Values marked with * retrieved from S&P Global.

Segment Breakdown (Loan Composition)

Loan Segment ($M)Q3 2024Q2 2025Q3 2025
Commercial & Industrial$395.60 $419.43 $395.86
CRE – Owner-Occupied$288.84 $317.48 $312.19
CRE – Non-Owner Occupied$889.19 $907.07 $931.72
Construction & Land Dev.$359.15 $310.25 $269.92
Multi-Family$432.71 $453.81 $514.80
1-4 Family Residential$472.04 $451.20 $443.22
Agricultural & Farmland$297.10 $271.64 $280.31
Municipal, Consumer & Other$235.20 $217.33 $252.01
Total Loans$3,369.83 $3,348.21 $3,400.03

KPIs and Funding Costs

KPIQ3 2024Q2 2025Q3 2025
Cost of Total Deposits (%)1.35 1.20 1.19
Cost of Funds (%)1.47 1.30 1.30
NIM (TE, %)4.03 4.19 4.18
Efficiency Ratio (TE, %)53.71 52.61 52.68
TCE/TA (%)9.35 10.21 10.56

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Income & NIMQ4 2025n/a“Relatively stable” vs Q3 2025New qualitative color
DepositsQ4 2025n/a“Up slightly”New qualitative color
Debt SecuritiesQ4 2025n/aOpportunistic purchases; balances “generally stable”New qualitative color
Noninterest IncomeQ4 2025n/a“Flat”New qualitative color
Noninterest Expense (ex-acquisition)Q4 2025n/a$31–$33MNew quantitative range

Note: No separate formal 8-K 2.02 guidance table located; outlook derived from the Q3’25 results presentation. No dividend update disclosed in the Q3’25 press release -.

Earnings Call Themes & Trends (Q1 → Q2 → Q3)

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Net Interest MarginQ1: up 16 bps QoQ to 4.12% on higher asset yields/lower funding costs; Q2: up 2 bps to 4.14% on higher securities yields and lower funding costs .NIM 4.13% (down 1 bp); loan yields -3 bps to 6.35% on lower fees/discount accretion; securities yields +15 bps to 2.75% .Stable; mixed drivers.
Loan GrowthQ1: period-end loans flat; Q2: down on payoffs and seasonal C&I reductions .Growth returned; loans +$51.8M QoQ to $3.40B (+6.2% annualized) .Improving.
DepositsQ1: deposits +$66.3M QoQ; Q2: -$78.1M on tax outflows .Deposits +$40.7M QoQ; +$45M WM reciprocal MM deposits; time deposits -$10.1M .Modestly positive, mix shift.
Asset QualityQ1: NPAs 0.11%; NCOs 0.05%; Q2: NPAs 0.13%; NCOs 0.12% .NPAs 0.17%; NCOs 0.02%; ACL/loans 1.23% .Still benign; modest NPA uptick.
Capital & TBVQ1 & Q2: TBVPS +$0.63 and +$0.59; CET1 up .TBVPS +$0.62 to $16.64; CET1 14.35%; TCE/TA 10.56% .Strengthening.
M&AQ1/Q2: “attractive opportunities” cited .Signed CNB Bank Shares acquisition; mixed cash/stock terms; closing targeted post-3/31/26 .Strategic expansion.

Management Commentary

  • “Adjusted net income(1) of $20.5 million, or $0.65 per diluted share, was our highest quarterly adjusted diluted earnings per share since becoming a public company… Our net interest margin on a tax equivalent basis(1) remained stable, decreasing only 1 basis point to 4.18%… Tangible book value per share(1) increased by 3.9% for the quarter and 14.4% over the last year.” — J. Lance Carter, CEO .
  • “Our balance sheet and asset quality remained strong with nonperforming assets to total assets of only 0.17%. Loan growth returned during the third quarter…” .
  • On CNB acquisition: “CNB Bank… is a true community bank… we are excited to partner with them to continue that tradition.” .
  • Outlook: Management expects NII/NIM stability, slightly higher deposits, flat noninterest income, and Q4’25 noninterest expense ex-acquisition of $31–$33M; asset quality to remain solid with potential normalization depending on macro .

Q&A Highlights

No Q3’25 earnings call transcript was available in our document set. Management’s presentation provided the key outlook items (NII/NIM stable; deposits slightly up; noninterest income flat; Q4’25 expense $31–$33M ex-acquisition; asset quality solid but could normalize with macro changes) .

Estimates Context

  • EPS beat: S&P Global consensus EPS $0.62 vs actual $0.65, a ~$0.03 (≈4.8%) beat, aided by efficiency and stable funding costs; adjusted PPNR rose 2.2% QoQ *.
  • Revenue slightly below: S&P Global consensus $60.25M vs actual $59.24M (≈1.7% below), with drivers including lower loan fees/discount accretion partly offset by higher securities yields *.
  • Coverage: 5 estimates for both EPS and revenue for Q3’25, indicating reasonable Street attention [GetEstimates]*.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Quality beat: EPS topped consensus on resilient NIM and tight cost control; expect limited estimate drift upward on EPS despite slight revenue shortfall *.
  • Positive credit and capital trajectory de-risk the story: Low losses, modest NPAs, and double-digit CET1/TCE levels support continued buybacks (>$11M authorization remaining) and M&A capacity .
  • Margin stability credible: Deposit costs held at 1.19% and funding cost at 1.30%; securities yields are rising, cushioning modest pressure from lower loan fees/discount accretion .
  • Loan growth re-accelerated: QoQ annualized loan growth of 6.2% with multi-family and non-owner-occupied CRE leading; watch for sustainability into Q4 given management’s “low single-digit” outlook .
  • CNB acquisition expands footprint with manageable consideration mix; integration timing (post-3/31/26 target) gives ample runway. Monitor regulatory approvals, cost synergies, and credit overlap .
  • Near-term setup: Q4 guide implies steady NIM/NII and flat fees with $31–$33M expenses ex-deal costs; investors should track MSR mark volatility and any normalization in credit .
  • Medium-term: Capital strength and deposit franchise underpin a durable mid-teens ROATCE framework through cycles; M&A adds optionality if integration is clean .

Additional Notes and Sources

  • Q3’25 earnings press release and detailed financials, including non-GAAP reconciliations: -.
  • Q2’25 and Q1’25 press releases for trend analysis: -, -.
  • Q3’25 earnings presentation (near-term outlook, portfolio detail): -.
  • CNB Bank Shares, Inc. merger agreement terms and anticipated closing mechanics: .

Values marked with * retrieved from S&P Global.