HBT Financial Results Presentation Deck slide image

HBT Financial Results Presentation Deck

Business Strategy Small enough to know you, big enough to serve you Preserve strong ties to our communities Drake family involved in Central IL banking since 1920 Management lives and works in our communities Community banking and relationship-based approach stems from adherence to our Midwestern values Committed to providing products and services to support the unique needs of our customer base Vast majority of loans originated to borrowers domiciled within 60 miles of a branch Deploy excess deposit funding into loan growth opportunities HBT Financial Highly defensible market position (Top 2 deposit share rank in 6 of 7 largest Central Illinois markets in which the Company operates¹) that contributes to our strong core deposit base and funding advantage Continue to deploy our excess deposit funding (77% loan-to-deposit ratio as of 4Q23) into attractive loan opportunities in larger, more diversified markets Efficient decision-making process provides a competitive advantage over the larger and more bureaucratic money center and super regional financial institutions that compete in our markets Maintain a prudent approach to credit underwriting 16 Robust underwriting standards will continue to be a hallmark of the Company Maintained sound credit quality and minimal originated problem asset levels during the Great Recession Diversified loan portfolio primarily within footprint Underwriting continues to be a strength as evidenced by NCOS / loans of (0.01)% during 2021, (0.08)% during 2022, and 0.01% during 2023; NPLs/loans of 0.11% at 2021; 0.08% at 2022, and 0.23% at 2023 Pursue strategic acquisitions and sustain strong profitability Positioned to be the acquirer of choice for many potential partners in and adjacent to our existing markets Successful integration of 10 community bank acquisitions² since 2007 Chicago MSA, in particular, has -80 banking institutions with less than $2bn in assets 1.43% ROAA³ and 3.23% NIM4 during 2021; 1.31% ROAA³ and 3.60% NIM during 2022; 1.59% ROAA³ and 4.15% NIM4 during 2023 Source: S&P Capital IQ, data as of June 30, 2023; 2 Includes merger with Lincoln S.B. Corp in 2018, although the transaction was accounted for as a change of reporting entity due to its common control with Company; ³ Metrics based on adjusted net income, which is a non-GAAP metric; for reconciliation with GAAP metrics, see "Non-GAAP reconciliations" in Appendix; 4 Metrics presented on tax- equivalent basis; for reconciliation with GAAP metric, see "Non-GAAP reconciliations" in Appendix. Highly profitable through the Great Recession
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