HBT Financial reports Q2 adjusted EPS 63c, consensus 60c

Net interest income for the second quarter of 2025 was $49.7M, an increase of 2.0% from $48.7M for the first quarter of 2025. Net interest margin for the second quarter of 2025 was 4.14%, compared to 4.12% for the first quarter of 2025. Reports CET1 ratio 14.26%. The ratio of tangible common equity to tangible assets increased to 10.21% as of June 30, 2025, from 9.73% as of March 31, 2025, and tangible book value per share increased by $0.59 to $16.02 as of June 30, 2025, when compared to March 31, 2025. J. Lance Carter, CEO, said, “During the second quarter of 2025, our team continued to deliver consistently strong earnings with adjusted net income of $19.8M, or $0.63 per diluted share. This was driven by an increase in adjusted pre-provision net revenue of 5.2%, compared to the first quarter of 2025. Adjusted ROAA was 1.58% and adjusted ROATCE was 16.02% for the second quarter while our net interest margin on a tax equivalent basis increased 3 basis points to 4.19%. Our strong profitability coupled with an improvement in our accumulated other comprehensive income due to lower interest rates resulted in a $0.59 increase in our tangible book value per share to $16.02, an increase of 3.8% for the quarter and 17.4% over the last 12 months. Our balance sheet remains strong as all capital ratios increased during the quarter and asset quality remained stable with nonperforming assets to total assets of only 0.13%. We saw a decrease in loans during the quarter as seasonal paydowns on grain elevator lines of credit caused a decrease in commercial and industrial loans and a higher amount of property sales caused higher payoffs in several other portfolios. We expect to see loan growth return in the third quarter of 2025 due to higher loan pipelines at the end of the second quarter than at the end of the first quarter and fewer payoffs projected. Our credit discipline, strong profitability and solid balance sheet give us confidence that we are prepared for a variety of economic and interest rate environments. Our capital levels and operational structure support attractive acquisition opportunities should the right opportunity arise.”