Lawrence J. Horvath
About Lawrence J. Horvath
Lawrence J. Horvath is Executive Vice President and Chief Lending Officer of HBT Financial, Inc. and Heartland Bank, age 61 as of April 9, 2025. He joined HBT in 2010, served as Executive Vice President/Senior Lender (2013–2019), became Regional Senior Lending Manager in 2019, and was named Chief Lending Officer in January 2023; he holds a BS in Finance from Western Illinois University . Company performance during his tenure includes 2024 net income of $71.78 million and cumulative TSR of 130.02 since December 31, 2021 versus peer TSR of 103.80; adjusted diluted EPS was $2.37 in 2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Heartland Bank and Trust (HBT subsidiary) | Executive Vice President, Senior Lender | 2013–2019 | Oversaw commercial lending across bank markets outside Cook County/Chicago suburbs . |
| Heartland Bank and Trust | Regional Senior Lending Manager | 2019–2022 | Advanced oversight of regional lending; preparatory role to CLO . |
| First State Bank of Bloomington | President & CEO | 2007–2010 | Led the institution prior to joining HBT; broadened community banking leadership experience . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Largest community development corporation in Illinois | Loan Committee Member | Current | Credit oversight contributing to community development lending . |
| Illinois Real Estate Title Center | Executive Committee Member | Current | Governance/oversight in title services impacting real estate lending ecosystem . |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Base Salary ($) | $320,000 | $332,800 | $344,448 |
| Target Bonus (% of base) | N/A – not an NEO in 2023 | 30% | Plan design substantially similar; target bonus % unchanged in disclosure |
| Actual Cash Bonus ($) | N/A – not an NEO in 2023 | $148,342 | Not disclosed |
2024 short‑term incentive outcome for Horvath: Target 30% of base ($99,840); payout 44.6% of base ($148,342), reflecting a 148.58% corporate scorecard payout .
Performance Compensation
2024 Short‑Term Incentive Scorecard (Company-wide metrics applied 100% to NEO bonuses)
| Metric | Threshold | Target | Maximum | Actual Result | Weighting | Payout Contribution |
|---|---|---|---|---|---|---|
| Adjusted Pre‑Provision Net Revenue less Net Charge‑offs (Recoveries) ($000s) | 76,075 | 89,500 | 102,925 | 103,162 | 25% | 37.50% |
| Adjusted ROAA (%) | 1.11% | 1.30% | 1.50% | 1.50% | 25% | 37.50% |
| Adjusted Efficiency Ratio (tax‑equivalent) (%) | 61.00% | 56.00% | 51.00% | 52.42% | 10% | 13.58% |
| Nonperforming Assets / Total Assets (%) | 1.00% | 0.625% | 0.25% | 0.16% | 10% | 15.00% |
| Relative Peer Ranking (percentile) | 25.00% | 50.00% | 75.00% | 95.20% | 30% | 45.00% |
| Total Payout | — | — | — | — | 100% | 148.58% |
Non‑GAAP metric definitions and reconciliations referenced in HBT’s 2024 Form 10‑K (pp. 68–75) .
2024 Long‑Term Incentives (granted Feb 29, 2024)
| Award Type | Units Granted | Grant Date Fair Value ($) | Vesting | Performance Condition |
|---|---|---|---|---|
| RSUs | 2,518 | $95,986 | 33% on 2/28/2025; 33% on 2/28/2026; 34% on 2/28/2027 | Time‑based |
| PRSUs (target) | 2,518 | Included above | Cliff vest on 2/28/2027 | 2024–2026 Average Annual ROAA with absolute/relative conditions; payout 0–150% per schedule below |
PRSU payout schedule (2024–2026 AAROAA):
- AAROAA ≥ 1.50%: 150% of target (absolute)
- 0.50%–<1.50%: 25%–150% of target based on peer percentile (≥75% → 150%)
- <0.50%: 0%
Prior cycle note: 2021 PRSUs (AAROATCE metric) paid at 150.00% and vested on Feb 29, 2024; acquisition‑related expenses excluded per award agreement .
Equity Ownership & Alignment
Beneficial Ownership
| Holder | Shares Beneficially Owned | % of Shares Outstanding | Notable Provisions |
|---|---|---|---|
| Lawrence J. Horvath | 56,124 | <1% (asterisk classification) | Includes 41,660 shares pledged as security |
Outstanding shares: 31,631,431 as of March 21, 2025 .
Outstanding Equity Awards (as of Dec 31, 2024)
| Instrument | Quantity/Status | Terms |
|---|---|---|
| Cash‑settled Stock Appreciation Rights | 6,120 exercisable | $16.32 exercise price; expire 9/1/2029 |
| Unvested RSUs | 4,640 units | Schedules below; market value $101,616 at $21.90 close |
| Unearned PRSUs (reported at max) | 10,249 units | Performance schedule above; market value $224,453 at $21.90 close |
Vesting schedule detail (units):
- 2/28/2025: 2,279 RSUs; 3,497 PRSUs
- 2/28/2026: 1,505 RSUs; 2,975 PRSUs
- 2/28/2027: 856 RSUs; 3,777 PRSUs
Ownership policy: executives must hold 1× annual base salary; unvested RSUs count, PRSUs do not; compliance within 3 years of policy adoption (or 5 years after increased requirement) .
Insider policies: Clawback policy under Exchange Act Rule 10D‑1; hedging prohibited; margin accounts prohibited unless treated as non‑marginable .
Employment Terms
| Scenario (assumes event on 12/31/2024) | Cash Severance | COBRA Continuation | Equity (accelerated/earned) | Total |
|---|---|---|---|---|
| Termination without Cause / Good Reason in connection with Change in Control | $432,640 | $30,216 | $326,069 | $788,925 |
| Qualifying Retirement (not in connection with Change in Control) | — | — | $188,209 | $188,209 |
| Death or Disability (not in connection with Change in Control) | — | — | $326,069 | $326,069 |
| Termination without Cause / Good Reason (not in connection with Change in Control) | $166,400 | — | — | $166,400 |
Severance framework (contract provisions): Horvath’s employment agreement provides 1× base salary and 1× target bonus (lump sum) plus 18 months COBRA (lump sum) upon CIC‑related qualifying termination; otherwise, 6 months continued base salary for qualifying termination; all NEO agreements include restrictive covenants and require a release of claims for severance .
Accelerated vesting terms (RSUs/PRSUs): death/disability, qualifying retirement, or qualifying termination around change in control can trigger accelerated vesting per award agreements .
Compensation Peer Group (used for 2024 benchmarking)
Bank First Corp.; Byline Bancorp, Inc.; Civista Bancshares, Inc.; Farmers National Banc Corp.; First Financial Corp.; First Mid Bancshares, Inc.; German American Bancorp, Inc.; Great Southern Bancorp, Inc.; Horizon Bancorp, Inc.; Lakeland Financial Corp.; Mercantile Bank Corp.; MidWestOne Financial Group, Inc.; Midland States Bancorp, Inc.; Nicolet Bankshares, Inc.; Old Second Bancorp, Inc.; Peoples Bancorp Inc.; Premier Financial Corp.; QCR Holdings, Inc.; Southern Missouri Bancorp, Inc.; Stock Yards Bancorp, Inc.; Independent Bank Corp. .
Investment Implications
- Pay‑for‑performance alignment is strong: 2024 short‑term incentive paid at 148.58% on balanced profitability/efficiency/credit/relative performance metrics; LTI PRSUs tie to 3‑year ROAA with absolute and relative hurdles up to 150% payout, reinforcing sustained returns orientation .
- Retention risk appears moderate: CIC severance for Horvath is 1× salary + 1× target bonus vs 2× for CEO/CFO, suggesting lower “golden parachute” leverage; continued salary only for non‑CIC terminations (6 months) .
- Insider selling pressure indicators: 41,660 shares are pledged as security (red flag); upcoming RSU/PRSU vesting dates (Feb 2025–2027) and cash‑settled SARs expiring 2029 may create episodic liquidity events in trading windows under insider policy .
- Ownership alignment: Horvath beneficially owns 56,124 shares (<1%) and is subject to stock ownership guidelines (1× base salary), with unvested RSUs counting toward compliance (PRSUs excluded) .
- Governance context: HBT is a controlled company under Nasdaq rules via a Voting Trust (54.4%); executive compensation decisions are overseen by an independent Compensation Committee using external benchmarking and risk assessments (no hedging; clawback policy in place) .
Overall: Incentive design emphasizes ROAA and peer outperformance while limiting CIC multiples for non‑CEO roles, supporting alignment and manageable retention risk; monitor pledged shares and annual vesting calendars as potential near‑term trading catalysts .