10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

o    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to

Commission file number: 001-39085

HBT Financial, Inc.

(Exact name of registrant as specified in its charter)

Delaware	37-1117216
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
401 North Hershey Rd Bloomington, Illinois 61704	(309) 662-4444
(Address of principal executive offices, including zip code)	(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HBT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	x
Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of April 24, 2024, there were 31,591,466 shares outstanding of the registrant’s common stock, $0.01 par value.

TABLE OF CONTENTS

HBT Financial, Inc.

		Page
PART I. FINANCIAL INFORMATION		3
Item 1.	Consolidated Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statement of Changes in Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	79
Item 4.	Controls and Procedures	81
PART II. OTHER INFORMATION		82
Item 1.	Legal Proceedings	82
Item 1A.	Risk Factors	82
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	82
Item 3.	Defaults Upon Senior Securities	82
Item 4.	Mine Safety Disclosures	82
Item 5.	Other Information	83
Item 6.	Exhibits	83

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report are forward-looking statements. Forward-looking statements may include statements relating to our plans, strategies and expectations, near-term loan growth, net interest margin, mortgage banking profits, wealth management fees, expenses, asset quality, capital levels, continued earnings, and liquidity. Forward-looking statements are generally identifiable by use of the words "believe," "may," "will," "should," "could," "expect," "estimate," "intend," "anticipate," "project," "plan" or similar expressions. Forward-looking statements are frequently based on assumptions that may or may not materialize and are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from the results anticipated or projected and which could materially and adversely affect our operating results, financial condition or prospects include, but are not limited to:

•the strength of the local, state, national, and international economies (including effects of inflationary pressures and supply chain constraints);

•the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events;

•changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board;

•changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the failures of other banks or as a result of the upcoming 2024 presidential election;

•changes in interest rates and prepayment rates of the Company’s assets (including the effects of significant interest rate increases since 2020);

•increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers;

•changes in technology and the ability to develop and maintain secure and reliable electronic systems;

•unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated;

•the loss of key executives or employees;

•changes in consumer spending;

•unexpected outcomes of existing or new litigation involving the Company;

•the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards;

•fluctuations in the value of securities held in our securities portfolio;

•concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients above current FDIC limits who may withdraw deposits to diversify their exposure;

•the level of non-performing assets on our balance sheets;

•interruptions involving our information technology and communications systems or third-party servicers;

•breaches or failures of our information security controls or cybersecurity-related incidents;

•our asset quality and any loan charge-offs;

•the effects of changes in interest rates on our net interest income, net interest margin, our investments, our loan originations, and our modeling estimates relating to interest rate changes;

•our access to sources of liquidity and capital to address our liquidity needs;

•our inability to receive dividends from the Bank, pay dividends to our common stockholders or satisfy obligations as they become due;

•the effects of problems encountered by other financial institutions;

•our ability to achieve organic loan and deposit growth and the composition of such growth;

•our ability to successfully develop and commercialize new or enhanced products and services;

•current and future business, economic and market conditions in the United States ("U.S.") generally or in the States of Illinois and Iowa in particular;

•the geographic concentration of our operations in the States of Illinois and Iowa;

•our ability to attract and retain customer deposits;

•our ability to maintain the Bank’s reputation;

•possible impairment of our goodwill and other intangible assets;

1

•the effectiveness of our risk management and internal disclosure controls and procedures;

•market perceptions associated with certain aspects of our business;

•our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002;

•our success at managing the risks involved in the foregoing items; and

•the factors discussed in "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" or elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange (“SEC”) Commission on March 6, 2024.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update any forward-looking statement in the future, or to reflect circumstances and events that occur after the date on which the forward-looking statement was made.

2

PART I. FINANCIAL INFORMATION

ITEM 1.    CONSOLIDATED FINANCIAL STATEMENTS

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(dollars in thousands, except per share data)	March 31, 2024		December 31, 2023
ASSETS
Cash and due from banks	$	19,989	$	26,256
Interest-bearing deposits with banks	240,223		114,996
Cash and cash equivalents	260,212		141,252
Interest-bearing time deposits with banks	515		509
Debt securities available-for-sale, at fair value	669,020		759,461
Debt securities held-to-maturity (fair value of $458,640 at 2024 and $466,496 at 2023)	517,472		521,439
Equity securities with readily determinable fair value	3,324		3,360
Equity securities with no readily determinable fair value	2,622		2,505
Restricted stock, at cost	5,155		7,160
Loans held for sale	3,479		2,318
Loans, before allowance for credit losses	3,345,962		3,404,417
Allowance for credit losses	(40,815)		(40,048)
Loans, net of allowance for credit losses	3,305,147		3,364,369
Bank owned life insurance	24,069		23,905
Bank premises and equipment, net	64,755		65,150
Bank premises held for sale	317		—
Foreclosed assets	277		852
Goodwill	59,820		59,820
Intangible assets, net	19,972		20,682
Mortgage servicing rights, at fair value	19,081		19,001
Investments in unconsolidated subsidiaries	1,614		1,614
Accrued interest receivable	23,117		24,534
Other assets	60,542		55,239
Total assets	$	5,040,510	$	5,073,170
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,047,074	$	1,072,407
Interest-bearing	3,313,500		3,329,030
Total deposits	4,360,574		4,401,437
Securities sold under agreements to repurchase	31,864		42,442
Federal Home Loan Bank advances	12,725		12,623
Subordinated notes	39,494		39,474
Junior subordinated debentures issued to capital trusts	52,804		52,789
Other liabilities	46,368		34,909
Total liabilities	4,543,829		4,583,674
COMMITMENTS AND CONTINGENCIES (Note 14)
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 32,827,039 at 2024 and 32,730,698 at 2023; shares outstanding of 31,612,888 at 2024 and 31,695,828 at 2023	328		327
Surplus	296,054		295,877
Retained earnings	278,353		269,051
Accumulated other comprehensive income (loss)	(56,048)		(57,163)
Treasury stock at cost, 1,214,151 shares at 2024 and 1,034,870 at 2023	(22,006)		(18,596)
Total stockholders’ equity	496,681		489,496
Total liabilities and stockholders’ equity	$	5,040,510	$	5,073,170

See accompanying Notes to Consolidated Financial Statements (Unaudited)

3

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended March 31,
(dollars in thousands, except per share data)	2024		2023
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	51,926	$	42,159
Federally tax exempt	1,094		952
Securities:
Taxable	6,250		6,616
Federally tax exempt	597		1,197
Interest-bearing deposits in bank	1,952		739
Other interest and dividend income	142		116
Total interest and dividend income	61,961		51,779
INTEREST EXPENSE
Deposits	13,593		2,374
Securities sold under agreements to repurchase	152		38
Borrowings	125		1,297
Subordinated notes	470		470
Junior subordinated debentures issued to capital trusts	933		763
Total interest expense	15,273		4,942
Net interest income	46,688		46,837
PROVISION FOR CREDIT LOSSES	527		6,210
Net interest income after provision for credit losses	46,161		40,627
NONINTEREST INCOME
Card income	2,616		2,658
Wealth management fees	2,547		2,338
Service charges on deposit accounts	1,869		1,871
Mortgage servicing	1,055		1,099
Mortgage servicing rights fair value adjustment	80		(624)
Gains on sale of mortgage loans	298		276
Realized gains (losses) on sales of securities	(3,382)		(1,007)
Unrealized gains (losses) on equity securities	(16)		(22)
Gains (losses) on foreclosed assets	87		(10)
Gains (losses) on other assets	(635)		—
Income on bank owned life insurance	164		115
Other noninterest income	943		743
Total noninterest income	5,626		7,437
NONINTEREST EXPENSE
Salaries	16,657		19,411
Employee benefits	2,805		2,335
Occupancy of bank premises	2,582		2,102
Furniture and equipment	550		659
Data processing	2,925		4,323
Marketing and customer relations	996		836
Amortization of intangible assets	710		510
FDIC insurance	560		563
Loan collection and servicing	452		278
Foreclosed assets	49		61
Other noninterest expense	2,982		4,855
Total noninterest expense	31,268		35,933
INCOME BEFORE INCOME TAX EXPENSE	20,519		12,131
INCOME TAX EXPENSE	5,261		2,923
NET INCOME	$	15,258	$	9,208
EARNINGS PER SHARE - BASIC	$	0.48	$	0.30
EARNINGS PER SHARE - DILUTED	$	0.48	$	0.30
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING	31,662,954		30,977,204

See accompanying Notes to Consolidated Financial Statements (Unaudited)

4

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
NET INCOME	$	15,258	$	9,208
OTHER COMPREHENSIVE INCOME
Unrealized gains (losses) on debt securities available-for-sale	(2,255)		11,443
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income	3,382		1,607
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	501		490
Unrealized gains (losses) on derivative instruments	64		(40)
Reclassification adjustment for net settlements on derivative instruments	(132)		(94)
Total other comprehensive income, before tax	1,560		13,406
Income tax expense	445		3,822
Total other comprehensive income	1,115		9,584
TOTAL COMPREHENSIVE INCOME	$	16,373	$	18,792

See accompanying Notes to Consolidated Financial Statements (Unaudited)

5

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)

	Common Stock							Accumulated Other Comprehensive Income (Loss)				Total Stockholders’ Equity
(dollars in thousands, except per share data)	Shares Outstanding	Amount		Surplus		Retained Earnings				Treasury Stock
Balance, December 31, 2023	31,695,828	$	327	$	295,877	$	269,051	$	(57,163)	$	(18,596)	$	489,496
Cumulative effect of change in accounting principle (ASU 2023-02)	—	—		—		116		—		—		116
Net income	—	—		—		15,258		—		—		15,258
Other comprehensive income	—	—		—		—		1,115		—		1,115
Stock-based compensation	—	—		509		—		—		—		509
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	96,341	1		(332)		—		—		—		(331)
Repurchase of common stock	(179,281)	—		—		—		—		(3,410)		(3,410)
Cash dividends and dividend equivalents ($0.19 per share)	—	—		—		(6,072)		—		—		(6,072)
Balance, March 31, 2024	31,612,888	$	328	$	296,054	$	278,353	$	(56,048)	$	(22,006)	$	496,681
Balance, December 31, 2022	28,752,626	$	293	$	222,783	$	232,004	$	(71,759)	$	(9,689)	$	373,632
Cumulative effect of change in accounting principle (ASU 2016-13)	—	—		—		(6,922)		—		—		(6,922)
Net income	—	—		—		9,208		—		—		9,208
Other comprehensive income	—	—		—		—		9,584		—		9,584
Stock-based compensation	—	—		517		—		—		—		517
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	43,607	—		(181)		—		—		—		(181)
Issuance of common stock in Town and Country acquisition	3,378,600	34		71,322		—		—		—		71,356
Repurchase of common stock	(79,463)	—		—		—		—		(1,588)		(1,588)
Cash dividends and dividend equivalents ($0.17 per share)	—	—		—		(5,508)		—		—		(5,508)
Balance, March 31, 2023	32,095,370	$	327	$	294,441	$	228,782	$	(62,175)	$	(11,277)	$	450,098

See accompanying Notes to Consolidated Financial Statements (Unaudited)

6

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	15,258	$	9,208
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	729		793
Provision for credit losses	527		6,210
Net amortization of debt securities	1,036		1,518
Deferred income tax expense (benefit)	1,154		(1,079)
Stock-based compensation	509		517
Net accretion of discount and deferred loan fees on loans	(1,854)		(1,635)
Net realized loss on sales of securities	3,382		1,007
Net unrealized loss on equity securities	16		22
Net loss on disposals of bank premises and equipment	55		—
Impairment losses on bank premises held for sale	580		—
Net gain on sales of foreclosed assets	(113)		(20)
Write-down of foreclosed assets	26		30
Amortization of intangibles	710		510
Decrease (increase) in mortgage servicing rights	(80)		624
Amortization of discount and issuance costs on subordinated notes and debentures	35		37
Amortization of discount on Federal Home Loan Bank advances	102		69
Amortization of premium on time deposits	(30)		(110)
Mortgage loans originated for sale	(12,459)		(15,734)
Proceeds from sale of mortgage loans	11,596		13,107
Net gain on sale of mortgage loans	(298)		(276)
Increase in cash surrender value of bank owned life insurance	(164)		(108)
Decrease in accrued interest receivable	1,417		2,318
Decrease (increase) in other assets	(5,574)		7,846
Increase (decrease) in other liabilities	10,212		(3,364)
Net cash provided by operating activities	26,772		21,490
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of interest-bearing time deposits with banks	(6)		—
Proceeds from sales of securities	66,832		145,844
Proceeds from paydowns, maturities, and calls of debt securities	29,563		26,513
Purchase of securities	(4,874)		(51)
Purchase of loans	(4,448)		—
Net decrease in loans	64,761		61,964
Purchase of restricted stock	—		(3,545)
Proceeds from redemption of restricted stock	2,005		9,341
Purchases of bank premises and equipment	(1,286)		(622)
Proceeds from sales of bank premises and equipment	—		7
Proceeds from sales of foreclosed assets	865		40
Net cash paid for acquisition of Town and Country	—		(14,454)
Net cash provided by investing activities	153,412		225,037

See accompanying Notes to Consolidated Financial Statements (Unaudited)

7

HBT FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	(40,833)		3,190
Net decrease in repurchase agreements	(10,578)		(8,162)
Net decrease in Federal Home Loan Bank advances	—		(171,325)
Taxes paid related to the vesting of restricted stock units	(331)		(181)
Repurchase of common stock	(3,410)		(1,588)
Cash dividends and dividend equivalents paid	(6,072)		(5,508)
Net cash used in financing activities	(61,224)		(183,574)
NET INCREASE IN CASH AND CASH EQUIVALENTS	118,960		62,953
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	141,252		114,159
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	260,212	$	177,112
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	15,926	$	4,903
Net refunds received for income taxes	$	(749)	$	—
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	$	203	$	105
Transfers of bank premises and equipment to bank premises held for sale	$	317	$	—

See accompanying Notes to Consolidated Financial Statements (Unaudited)

8

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 – ACCOUNTING POLICIES

Basis of Presentation

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 6, 2024.

The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses.

Low Income Housing Tax Credits

The Company holds an ownership interest in a limited liability company, as a limited partner, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method.

9

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $7.5 million as of March 31, 2024.

Segment Reporting

The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Impact of Recently Adopted Accounting Standards

On January 1, 2024, the Company adopted ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323). ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $7.2 million increase to other assets and other liabilities, as a result of the adoption.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

10

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method. ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

11

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 2 – ACQUISITIONS

Town and Country Financial Corporation

On February 1, 2023, HBT Financial acquired 100% of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity.

At the effective time of the merger, each share of Town and Country was converted into the right to receive, subject to the election and proration procedures as provided in the Merger Agreement, one of the following: (i) 1.9010 shares of HBT Financial’s common stock, or (ii) $35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate transaction value was approximately $109.4 million.

This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Measurement period adjustments of $0.1 million were recorded in the third quarter of 2023 as more information became available regarding Town and Country's tax assets and liabilities. Goodwill of $30.5 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes.

The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois, and expanded our footprint into metro-east St. Louis. No expenses were incurred related to the acquisition of Town and Country for the three months ended March 31, 2024. During the three months ended March 31, 2023, HBT Financial incurred the following expenses related to the acquisition of Town and Country:

(dollars in thousands)	Three Months Ended March 31, 2023
PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries	3,518
Data processing	1,855
Marketing and customer relations	14
Legal fees and other noninterest expense	1,753
Total noninterest expense	7,140
Total Town and Country acquisition-related expenses	$	13,064

12

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands):

	Fair Value
Assets acquired:
Cash and cash equivalents	$	23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	301
Restricted stock	2,822
Loans held for sale	1,612
Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129
Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	8,940
Total assets acquired	906,658
Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	$	78,854
Consideration paid:
Cash	$	37,996
Common stock	71,356
Total consideration paid	$	109,352
Goodwill	$	30,498

13

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Of the loans acquired, there were $89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands):

Unpaid principal balance	$	89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$	86,357

Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through an increase to the provision for credit losses.

The following table provides the pro forma information for the results of operations for the three months ended March 31, 2023 as if the acquisition of Town and Country had occurred on January 1, 2022. The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table.

	Pro Forma
(dollars in thousands, except per share data)	Three Months Ended March 31, 2023
Total revenues (net interest income and noninterest income)	$	57,770
Net income	10,015
Earnings per share - basic	0.31
Earnings per share - diluted	0.31

14

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 3 – SECURITIES

Debt Securities

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:

	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	149,697	$	—	$	(11,511)	$	—	$	138,186
U.S. government agency	53,836		—		(3,377)		—		50,459
Municipal	156,403		1		(21,756)		—		134,648
Mortgage-backed:
Agency residential	183,553		51		(15,058)		—		168,546
Agency commercial	138,873		2		(14,400)		—		124,475
Corporate	57,694		—		(4,988)		—		52,706
Total available-for-sale	$	740,056	$	54	$	(71,090)	$	—	$	669,020
	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,454	$	—	$	(8,977)	$	79,477	$	—
Municipal	38,459		158		(351)		38,266		—
Mortgage-backed:
Agency residential	93,737		—		(6,497)		87,240		—
Agency commercial	296,822		—		(43,165)		253,657		—
Total held-to-maturity	$	517,472	$	158	$	(58,990)	$	458,640	$	—

15

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461
	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

As of March 31, 2024 and December 31, 2023, the Bank had debt securities with a carrying value of $388.8 million and $419.4 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of March 31, 2024, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in 1 year or less	$	46,701	$	45,715	$	2,791	$	2,789
Due after 1 year through 5 years	193,559		179,686		44,748		42,300
Due after 5 years through 10 years	155,271		132,382		73,706		67,434
Due after 10 years	22,099		18,216		5,668		5,220
Mortgage-backed:
Agency residential	183,553		168,546		93,737		87,240
Agency commercial	138,873		124,475		296,822		253,657
Total	$	740,056	$	669,020	$	517,472	$	458,640

16

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of March 31, 2024 and December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:

	March 31, 2024
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,511)	$	138,186	$	(11,511)	$	138,186
U.S. government agency	—		—		(3,377)		50,432		(3,377)		50,432
Municipal	(10)		2,648		(21,746)		131,224		(21,756)		133,872
Mortgage-backed:
Agency residential	(32)		7,947		(15,026)		155,172		(15,058)		163,119
Agency commercial	(10)		913		(14,390)		123,480		(14,400)		124,393
Corporate	(7)		1,987		(4,981)		50,706		(4,988)		52,693
Total available-for-sale	$	(59)	$	13,495	$	(71,031)	$	649,200	$	(71,090)	$	662,695

	December 31, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

As of March 31, 2024, there were 690 debt securities in an unrealized loss position for a period of twelve months or more, and 73 debt securities in an unrealized loss position for a period of less than twelve months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

17

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Municipal securities include approximately 73% general obligation bonds as of March 31, 2024, which have a very low historical default rate due to issuers generally having taxing authority to service the debt. The remainder of the municipal securities are also of high credit quality with ratings of A1/A+ or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. During 2024, the changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. During the three months ended March 31, 2023, a $0.6 million allowance for credit losses was established for one bank subordinated debt security, reflecting heightened potential credit risk following the failures of other banks in early 2023. This allowance for credit losses was later reversed during the third quarter of 2023 after a merger announcement by the issuer of the bank subordinated debt security.

As of March 31, 2024, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.

Accrued interest on debt securities is excluded from the estimate of credit losses and totaled $5.4 million and $6.0 million as of March 31, 2024 and December 31, 2023, respectively.

Sales of debt securities were as follows during the three months ended March 31:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds from sales	$	66,812	$	145,844
Gross realized gains	—		—
Gross realized losses	(3,382)		(1,007)

18

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Equity Securities

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows:

	March 31, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,124	$	2,957
Cumulative net unrealized gains (losses)	200		(335)
Carrying value	$	3,324	$	2,622

	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

As of March 31, 2024 and December 31, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

During the three months ended March 31, 2024, the Company sold equity securities with a readily determinable fair value totaling $20 thousand at their carrying value. There were no sales of equity securities during the three months ended March 31, 2023.

Unrealized gains (losses) on equity securities were as follows during the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Readily determinable fair value	$	(16)	$	116
No readily determinable fair value	—		(138)
Unrealized gains (losses) on equity securities	$	(16)	$	(22)

19

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 4 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Major categories of loans are summarized as follows:

(dollars in thousands)	March 31, 2024		December 31, 2023
Commercial and industrial	$	402,206	$	427,800
Commercial real estate - owner occupied	294,967		295,842
Commercial real estate - non-owner occupied	890,251		880,681
Construction and land development	345,991		363,983
Multi-family	421,573		417,923
One-to-four family residential	485,948		491,508
Agricultural and farmland	287,205		287,294
Municipal, consumer, and other	217,821		239,386
Loans, before allowance for credit losses	3,345,962		3,404,417
Allowance for credit losses	(40,815)		(40,048)
Loans, net of allowance for credit losses	$	3,305,147	$	3,364,369

Allowance for Credit Losses

Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At March 31, 2024, the economic forecast used by management anticipates an economic slowdown, but not a recession, with the unemployment rate remaining stable and GDP growth slowing and then remaining stable over the next 4 quarters considered in the forecast period. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.

20

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables detail activity in the allowance for credit losses:

	Three Months Ended March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048
Provision for credit losses	239		(117)		2,102		(454)		8		(421)		32		(829)		560
Charge-offs	(15)		—		—		—		—		(21)		—		(191)		(227)
Recoveries	26		2		242		1		—		84		7		72		434
Ending balance	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	Three Months Ended March 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for loan losses	387		619		305		1,139		526		1,081		305		739		5,101
Charge-offs	—		(3)		—		—		—		(22)		—		(117)		(142)
Recoveries	19		12		74		3		—		58		1		87		254
Ending balance	$	2,932	$	2,535	$	7,840	$	7,574	$	2,151	$	4,165	$	2,674	$	8,905	$	38,776

21

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2024 and 2023.

	Gross Charge-Offs for the Three Months Ended March 31, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior
Commercial and industrial	$	—	$	3	$	—	$	—	$	—	$	11	$	1	$	—	$	15
Commercial real estate - owner occupied	—		—		—		—		—		—		—		—		—
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		3		—		—		6		12		—		21
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	44		56		6		—		—		—		85		—		191
Total	$	44	$	59	$	9	$	—	$	—	$	17	$	98	$	—	$	227
	Gross Charge-Offs for the Three Months Ended March 31, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - owner occupied	—		3		—		—		—		—		—		—		3
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		21		—		—		22
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	35		53		—		9		—		—		20		—		117
Total	$	35	$	56	$	—	$	9	$	1	$	21	$	20	$	—	$	142

22

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present loans and the related allowance for credit losses by category:

	March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	401,036	$	294,322	$	875,344	$	345,775	$	421,257	$	479,840	$	287,061	$	202,934	$	3,307,569
Individually evaluated for impairment	1,170		645		14,907		216		316		6,108		144		14,887		38,393
Total	$	402,206	$	294,967	$	890,251	$	345,991	$	421,573	$	485,948	$	287,205	$	217,821	$	3,345,962
Allowance for credit losses:
Collectively evaluated for impairment	$	4,882	$	2,157	$	9,224	$	5,545	$	3,845	$	4,603	$	1,014	$	5,414	$	36,684
Individually evaluated for impairment	348		—		834		—		—		243		—		2,706		4,131
Total	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	December 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417
Allowance for loan losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

23

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

	March 31, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	895	$	275	$	1,170	$	348
Commercial real estate - owner occupied	645		—		—		645		—
Commercial real estate - non-owner occupied	14,907		—		—		14,907		834
Construction and land development	216		—		—		216		—
Multi-family	316		—		—		316		—
One-to-four family residential	6,108		—		—		6,108		243
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,817		48		22		14,887		2,706
Total	$	37,153	$	943	$	297	$	38,393	$	4,131
	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

Accrued interest on loans is excluded from the estimate of credit losses and totaled $17.3 million and $18.4 million as of March 31, 2024 and December 31, 2023, respectively.

Past Due and Nonaccrual Status

Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

24

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present loans by category based on current payment and accrual status:

	March 31, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	400,152	$	884	$	—	$	1,170	$	402,206
Commercial real estate - owner occupied	294,148		174		—		645		294,967
Commercial real estate - non-owner occupied	885,963		2,645		—		1,643		890,251
Construction and land development	345,775		—		—		216		345,991
Multi-family	421,142		115		—		316		421,573
One-to-four family residential	478,351		2,143		—		5,454		485,948
Agricultural and farmland	286,977		84		—		144		287,205
Municipal, consumer, and other	217,629		123		—		69		217,821
Total	$	3,330,137	$	6,168	$	—	$	9,657	$	3,345,962

	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

25

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present nonaccrual loans with and without a related allowance for credit losses:

	March 31, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	1,057	$	113	$	1,170
Commercial real estate - owner occupied	—		645		645
Commercial real estate - non-owner occupied	—		1,643		1,643
Construction and land development	216		—		216
Multi-family	—		316		316
One-to-four family residential	145		5,309		5,454
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		69		69
Total	$	1,418	$	8,239	$	9,657
	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

26

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Credit Quality Indicators

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $750,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows:

Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a Substandard or Doubtful classification.

Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

27

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present loans by category based on their assigned risk ratings determined by management:

	March 31, 2024
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	388,483	$	8,882	$	4,841	$	—	$	402,206
Commercial real estate - owner occupied	275,346		12,611		7,010		—		294,967
Commercial real estate - non-owner occupied	825,513		40,095		24,643		—		890,251
Construction and land development	333,565		12,154		272		—		345,991
Multi-family	401,541		19,716		316		—		421,573
One-to-four family residential	466,266		7,000		12,682		—		485,948
Agricultural and farmland	276,427		7,092		3,686		—		287,205
Municipal, consumer, and other	201,083		1,732		15,006		—		217,821
Total	$	3,168,224	$	109,282	$	68,456	$	—	$	3,345,962

	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	419,494	$	7,128	$	1,178	$	—	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		—		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		—		880,681
Construction and land development	351,087		12,604		292		—		363,983
Multi-family	397,951		19,656		316		—		417,923
One-to-four family residential	472,355		6,671		12,482		—		491,508
Agricultural and farmland	280,867		3,071		3,356		—		287,294
Municipal, consumer, and other	222,474		1,721		15,191		—		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	—	$	3,404,417

28

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Risk ratings of loans, further sorted by origination year, are as follows as of March 31, 2024:

(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	17,320	$	73,281	$	55,707	$	17,771	$	24,591	$	33,691	$	162,876	$	3,246	$	388,483
Pass-Watch	—		3,490		1,374		955		124		1,161		766		1,012		8,882
Substandard	—		1,311		65		27		42		—		2,942		454		4,841
Total	$	17,320	$	78,082	$	57,146	$	18,753	$	24,757	$	34,852	$	166,584	$	4,712	$	402,206
Commercial real estate - owner occupied
Pass	$	7,568	$	27,742	$	63,093	$	54,117	$	52,110	$	57,399	$	13,250	$	67	$	275,346
Pass-Watch	352		3,199		919		5,070		1,414		1,657		—		—		12,611
Substandard	—		3,141		84		1,180		61		1,061		1,483		—		7,010
Total	$	7,920	$	34,082	$	64,096	$	60,367	$	53,585	$	60,117	$	14,733	$	67	$	294,967
Commercial real estate - non-owner occupied
Pass	$	11,210	$	124,093	$	246,855	$	234,215	$	87,338	$	110,263	$	9,840	$	1,699	$	825,513
Pass-Watch	—		790		6,824		6,925		348		11,383		13,586		239		40,095
Substandard	—		13,274		124		—		—		11,245		—		—		24,643
Total	$	11,210	$	138,157	$	253,803	$	241,140	$	87,686	$	132,891	$	23,426	$	1,938	$	890,251
Construction and land development
Pass	$	25,805	$	133,857	$	107,186	$	42,022	$	9,070	$	3,170	$	12,194	$	261	$	333,565
Pass-Watch	152		1,919		8,423		—		—		19		804		837		12,154
Substandard	—		—		216		—		—		56		—		—		272
Total	$	25,957	$	135,776	$	115,825	$	42,022	$	9,070	$	3,245	$	12,998	$	1,098	$	345,991
Multi-family
Pass	$	5,042	$	83,616	$	81,575	$	117,281	$	52,554	$	56,099	$	4,893	$	481	$	401,541
Pass-Watch	400		2,703		7,161		—		8,816		629		—		7		19,716
Substandard	—		—		—		316		—		—		—		—		316
Total	$	5,442	$	86,319	$	88,736	$	117,597	$	61,370	$	56,728	$	4,893	$	488	$	421,573
One-to-four family residential
Pass	$	14,674	$	98,623	$	90,394	$	78,700	$	62,792	$	61,198	$	53,859	$	6,026	$	466,266
Pass-Watch	365		2,039		283		931		605		2,296		202		279		7,000
Substandard	70		1,527		1,523		547		564		5,517		—		2,934		12,682
Total	$	15,109	$	102,189	$	92,200	$	80,178	$	63,961	$	69,011	$	54,061	$	9,239	$	485,948
Agricultural and farmland
Pass	$	17,509	$	43,295	$	35,500	$	34,208	$	31,935	$	12,397	$	100,006	$	1,577	$	276,427
Pass-Watch	137		2,878		794		94		27		761		2,355		46		7,092
Substandard	331		—		—		12		3,199		144		—		—		3,686
Total	$	17,977	$	46,173	$	36,294	$	34,314	$	35,161	$	13,302	$	102,361	$	1,623	$	287,205
Municipal, Consumer, and other
Pass	$	8,181	$	38,222	$	49,651	$	27,623	$	13,490	$	42,611	$	21,305	$	—	$	201,083
Pass-Watch	—		10		31		11		—		1,676		4		—		1,732
Substandard	31		64		62		—		—		14,825		24		—		15,006
Total	$	8,212	$	38,296	$	49,744	$	27,634	$	13,490	$	59,112	$	21,333	$	—	$	217,821
Total by Risk Rating
Pass	$	107,309	$	622,729	$	729,961	$	605,937	$	333,880	$	376,828	$	378,223	$	13,357	$	3,168,224
Pass-Watch	1,406		17,028		25,809		13,986		11,334		19,582		17,717		2,420		109,282
Substandard	432		19,317		2,074		2,082		3,866		32,848		4,449		3,388		68,456
Total	$	109,147	$	659,074	$	757,844	$	622,005	$	349,080	$	429,258	$	400,389	$	19,165	$	3,345,962

29

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2023:

(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2023		2022		2021		2020		2019		Prior
Commercial and industrial
Pass	$	90,931	$	58,364	$	19,283	$	26,816	$	5,269	$	29,550	$	187,579	$	1,702	$	419,494
Pass-Watch	2,025		1,340		892		144		753		471		956		547		7,128
Substandard	111		73		327		60		—		—		323		284		1,178
Total	$	93,067	$	59,777	$	20,502	$	27,020	$	6,022	$	30,021	$	188,858	$	2,533	$	427,800
Commercial real estate - owner occupied
Pass	$	27,516	$	64,229	$	55,376	$	53,634	$	32,469	$	28,876	$	13,549	$	—	$	275,649
Pass-Watch	4,061		943		5,210		1,474		1,573		811		—		—		14,072
Substandard	2,734		86		1,550		64		164		1,523		—		—		6,121
Total	$	34,311	$	65,258	$	62,136	$	55,172	$	34,206	$	31,210	$	13,549	$	—	$	295,842
Commercial real estate - non-owner occupied
Pass	$	121,536	$	240,323	$	237,953	$	88,894	$	82,094	$	39,228	$	10,274	$	1,710	$	822,012
Pass-Watch	810		6,893		7,013		353		4,230		154		13,585		245		33,283
Substandard	13,376		124		286		—		2,410		9,190		—		—		25,386
Total	$	135,722	$	247,340	$	245,252	$	89,247	$	88,734	$	48,572	$	23,859	$	1,955	$	880,681
Construction and land development
Pass	$	153,499	$	119,005	$	56,954	$	5,596	$	2,662	$	796	$	12,050	$	525	$	351,087
Pass-Watch	153		10,750		—		—		—		—		163		1,538		12,604
Substandard	—		216		—		—		—		76		—		—		292
Total	$	153,652	$	129,971	$	56,954	$	5,596	$	2,662	$	872	$	12,213	$	2,063	$	363,983
Multi-family
Pass	$	83,898	$	81,507	$	115,402	$	53,126	$	34,053	$	23,570	$	5,904	$	491	$	397,951
Pass-Watch	3,111		7,197		—		8,821		51		468		—		8		19,656
Substandard	—		—		316		—		—		—		—		—		316
Total	$	87,009	$	88,704	$	115,718	$	61,947	$	34,104	$	24,038	$	5,904	$	499	$	417,923
One-to-four family residential
Pass	$	105,337	$	91,636	$	82,289	$	64,094	$	21,986	$	44,241	$	57,248	$	5,524	$	472,355
Pass-Watch	2,382		286		940		486		212		1,804		203		358		6,671
Substandard	1,507		1,527		623		646		1,037		4,166		64		2,912		12,482
Total	$	109,226	$	93,449	$	83,852	$	65,226	$	23,235	$	50,211	$	57,515	$	8,794	$	491,508
Agricultural and farmland
Pass	$	52,766	$	37,600	$	36,604	$	33,960	$	8,910	$	7,756	$	100,486	$	2,785	$	280,867
Pass-Watch	953		361		425		30		71		719		172		340		3,071
Substandard	—		—		13		3,199		—		144		—		—		3,356
Total	$	53,719	$	37,961	$	37,042	$	37,189	$	8,981	$	8,619	$	100,658	$	3,125	$	287,294
Municipal, Consumer, and other
Pass	$	43,575	$	57,404	$	27,904	$	14,342	$	1,016	$	42,499	$	35,734	$	—	$	222,474
Pass-Watch	9		6		13		—		—		1,693		—		—		1,721
Substandard	51		103		2		6		8		15,012		8		1		15,191
Total	$	43,635	$	57,513	$	27,919	$	14,348	$	1,024	$	59,204	$	35,742	$	1	$	239,386
Total by Risk Rating
Pass	$	679,058	$	750,068	$	631,765	$	340,462	$	188,459	$	216,516	$	422,824	$	12,737	$	3,241,889
Pass-Watch	$	13,504	$	27,776	$	14,493	$	11,308	$	6,890	$	6,120	$	15,079	$	3,036	98,206
Substandard	$	17,779	$	2,129	$	3,117	$	3,975	$	3,619	$	30,111	$	395	$	3,197	64,322
Total	$	710,341	$	779,973	$	649,375	$	355,745	$	198,968	$	252,747	$	438,298	$	18,970	$	3,404,417

30

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Modifications

There were no loan modifications to borrowers in financial distress during the three months ended March 31, 2024 and 2023. There were no modified loans to borrowers in financial distress outstanding as of March 31, 2024 and December 31, 2023.

Pledged Loans

As of March 31, 2024 and December 31, 2023, the Company pledged loans totaling $1.85 billion and $1.20 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.

NOTE 5 – LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.64 billion and $1.66 billion as of March 31, 2024 and December 31, 2023, respectively. Activity in mortgage servicing rights is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	19,001	$	10,147
Acquired	—		10,469
Capitalized servicing rights	130		129
Fair value adjustments attributable to payments and principal reductions	(429)		(431)
Fair value adjustments attributable to changes in valuation inputs and assumptions	379		(322)
Ending balance	$	19,081	$	19,992

NOTE 6 – FORECLOSED ASSETS

Foreclosed assets activity is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	852	$	3,030
Acquired	—		271
Transfers from loans	203		105
Proceeds from sales	(865)		(40)
Net gain on sales	113		20
Direct write-downs	(26)		(30)
Ending balance	$	277	$	3,356

31

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Gains (losses) on foreclosed assets includes the following:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Direct write-downs	$	(26)	$	(30)
Net gain on sales	113		20
Gains (losses) on foreclosed assets	$	87	$	(10)

The carrying value of foreclosed one-to-four family residential real estate properties held was $0.1 million and $0.1 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, there were 20 one-to-four family residential real estate loans in the process of foreclosure totaling $2.0 million. As of December 31, 2023, there were 16 one-to-four family residential real estate loans in the process of foreclosure totaling $1.2 million.

NOTE 7 – DEPOSITS

The Company’s deposits are summarized below:

(dollars in thousands)	March 31, 2024		December 31, 2023
Noninterest-bearing deposits	$	1,047,074	$	1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,139,172		1,145,092
Money market	802,685		803,381
Savings	602,739		608,424
Time	713,142		627,253
Brokered	55,762		144,880
Total interest-bearing deposits	3,313,500		3,329,030
Total deposits	$	4,360,574	$	4,401,437

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $244.1 million and $236.8 million as of March 31, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $171.4 million and $130.2 million as of March 31, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $406.4 million and $342.8 million as of March 31, 2024 and December 31, 2023, respectively.

The components of interest expense on deposits are as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Interest-bearing demand	$	1,311	$	458
Money market	4,797		935
Savings	443		178
Time	5,925		803
Brokered	1,117		—
Total interest expense on deposits	$	13,593	$	2,374

32

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 8 – DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.

Interest Rate Swaps Designated as Cash Flow Hedges

The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreements designated as cash flow hedges are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets	$	17,000	$	254	$	17,000	$	322

As of March 31, 2024, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of March 31, 2024 and December 31, 2023, counterparties had cash pledged and held on deposit by the Company of $0.4 million and $0.6 million, respectively.

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:

Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	132	$	94

33

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Interest Rate Swaps Not Designated as Hedging Instruments

The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The interest rate swap agreements not designated as hedging instruments are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	93,199		7,507		94,497		6,227
Total fair value recorded in other assets	$	93,199	$	7,507	$	94,497	$	6,227
Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	93,199	$	(7,507)	$	94,497	$	(6,227)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	93,199	$	(7,507)	$	94,497	$	(6,227)

As of March 31, 2024, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035.

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Not designated as hedging instruments:
Gross gains	$	2,038	$	2,737
Gross losses	(2,038)		(2,737)
Net gains (losses)	$	—	$	—

34

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):

	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total
Three Months Ended March 31, 2024
Balance, December 31, 2023	$	(48,579)	$	(8,549)	$	(35)	$	(57,163)
Other comprehensive income (loss) before reclassifications	(2,255)		—		64		(2,191)
Reclassifications	3,382		501		(132)		3,751
Other comprehensive income (loss), before tax	1,127		501		(68)		1,560
Income tax expense (benefit)	322		143		(20)		445
Other comprehensive income (loss), after tax	805		358		(48)		1,115
Balance, March 31, 2024	$	(47,774)	$	(8,191)	$	(83)	$	(56,048)
Three Months Ended March 31, 2023
Balance, December 31, 2022	$	(61,998)	$	(9,946)	$	185	$	(71,759)
Other comprehensive income (loss) before reclassifications	11,443		—		(40)		11,403
Reclassifications	1,607		490		(94)		2,003
Other comprehensive income (loss), before tax	13,050		490		(134)		13,406
Income tax expense (benefit)	3,720		140		(38)		3,822
Other comprehensive income (loss), after tax	9,330		350		(96)		9,584
Balance, March 31, 2023	$	(52,668)	$	(9,596)	$	89	$	(62,175)

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 8 for additional information.

35

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 10 – EARNINGS PER SHARE

The Company previously granted restricted stock units that contained non-forfeitable rights to dividend equivalents which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Numerator:
Net income	$	15,258	$	9,208
Earnings allocated to participating securities	—		(5)
Numerator for earnings per share - basic and diluted	$	15,258	$	9,203
Denominator:
Weighted average common shares outstanding	31,662,954		30,977,204
Dilutive effect of outstanding restricted stock units	140,233		69,947
Weighted average common shares outstanding, including all dilutive potential shares	31,803,187		31,047,151
Earnings per share - Basic	$	0.48	$	0.30
Earnings per share - Diluted	$	0.48	$	0.30

NOTE 11 – STOCK-BASED COMPENSATION PLANS

The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.

The following is a summary of stock-based compensation expense (benefit):

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Restricted stock units	$	273	$	277
Performance restricted stock units	236		240
Total awards classified as equity	509		517
Stock appreciation rights	(129)		1
Total stock-based compensation expense	$	380	$	518

36

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Restricted Stock Units

A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2024 and 2023, the total grant date fair value of the restricted stock units granted was $1.0 million and $1.0 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the three months ended March 31, 2024 and 2023 was $1.4 million and $1.1 million, respectively.

The following is a summary of restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	128,159	$	19.56	139,986	$	18.01
Granted	51,246	19.06		41,847	22.72
Vested	(70,540)	18.96		(51,693)	17.91
Forfeited	—	—		(718)	16.58
Ending balance	108,865	$	19.71	129,422	$	19.58

As of March 31, 2024, unrecognized compensation cost related to the non-vested restricted stock units was $1.7 million. This cost is expected to be recognized over the weighted average remaining service period of 1.9 years.

37

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Performance Restricted Stock Units

A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2024 and 2023, the total fair value of the performance restricted stock units granted was $0.4 million and $0.4 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date. The total intrinsic value of performance restricted stock units that vested during the three months ended March 31, 2024 was $0.8 million.

The following is a summary of performance restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	79,097	$	18.25	62,067	$	17.02
Granted	19,933	19.06		17,030	22.72
Adjustment for performance condition	14,349	15.53		—	—
Vested	(43,046)	15.53		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

As of March 31, 2024, unrecognized compensation cost related to non-vested performance restricted stock units was $0.6 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.7 years.

38

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Stock Appreciation Rights

A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award.

The following is a summary of stock appreciation rights activity:

	Three Months Ended March 31,
	2024			2023
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

As of March 31, 2024, all stock appreciation rights were exercisable and had a weighted average remaining term of 5.1 years. There was no unrecognized compensation cost for stock appreciation rights as of March 31, 2024.

As of March 31, 2024 and December 31, 2023, the liability recorded for outstanding stock appreciation rights was $0.4 million and $0.6 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.

	March 31, 2024		December 31, 2023
Risk-free interest rate	4.21	%	3.85	%
Expected volatility	37.35	%	37.37	%
Expected life (in years)	5.4		5.7
Expected dividend yield	3.99	%	3.22	%

As of December 31, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million which was paid in 2024.

NOTE 12 – REGULATORY MATTERS

The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.

39

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.

Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer is 2.5% of risk-weighted assets.

As of March 31, 2024 and December 31, 2023, the Company and the Bank each met all capital adequacy requirements to which they were subject. The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:

	March 31, 2024
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	611,371	15.79	%	$	309,672	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	532,901		13.77		232,254		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	481,711		12.44		174,190		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	532,901		10.65		200,131		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	597,680	15.45	%	$	309,434	8.00	%	$	386,792	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		232,075		6.00		309,434		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		174,056		4.50		251,415		6.50
Tier 1 Capital (to Average Assets)	558,704		11.17		199,999		4.00		249,999		5.00

40

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

	December 31, 2023
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	603,234	15.33	%	$	314,814	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	527,964		13.42		236,110		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	476,789		12.12		177,083		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	527,964		10.49		201,231		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	586,604	14.92	%	$	314,496	8.00	%	$	393,119	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		235,872		6.00		314,496		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		176,904		4.50		255,528		6.50
Tier 1 Capital (to Average Assets)	550,808		10.96		201,063		4.00		251,329		5.00

NOTE 13 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

41

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Recurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income (loss). The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

42

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	138,186	$	—	$	—	$	138,186
U.S. government agency	—		50,459		—		50,459
Municipal	—		134,648		—		134,648
Mortgage-backed:
Agency residential	—		168,546		—		168,546
Agency commercial	—		124,475		—		124,475
Corporate	—		52,706		—		52,706
Equity securities with readily determinable fair values	3,324		—		—		3,324
Mortgage servicing rights	—		—		19,081		19,081
Derivative financial assets	—		7,761		—		7,761
Derivative financial liabilities	—		7,507		—		7,507

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	148,622	$	—	$	—	$	148,622
U.S. government agency	—		52,097		—		52,097
Municipal	—		205,557		—		205,557
Mortgage-backed:
Agency residential	—		173,984		—		173,984
Agency commercial	—		127,012		—		127,012
Corporate	—		52,189		—		52,189
Equity securities with readily determinable fair values	3,360		—		—		3,360
Mortgage servicing rights	—		—		19,001		19,001
Derivative financial assets	—		6,549		—		6,549
Derivative financial liabilities	—		6,227		—		6,227

43

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,081	Discounted cash flows	Constant pre-payment rates (CPR)	6.4% to 59.7% (8.6%)
				Discount rate	9.0% to 55.0% (9.8%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,001	Discounted cash flows	Constant pre-payment rates (CPR)	6.2% to 49.4% (8.4%)
				Discount rate	9.0% to 37.3% (9.6%)

Nonrecurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis.

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.

Collateral-Dependent Loans

Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

44

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following tables summarize assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	3,479	$	—	$	3,479
Collateral-dependent loans	—		—		34,262		34,262
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		277		277

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	2,318	$	—	$	2,318
Collateral-dependent loans	—		—		32,685		32,685
Foreclosed assets	—		—		852		852

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	34,262	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale	317		Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets	277		Appraisal	Appraisal adjustments	7% (7%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	32,685	Appraisal of collateral	Appraisal adjustments	Not meaningful
Foreclosed assets	852		Appraisal	Appraisal adjustments	7% (7%)

Other Fair Value Methods

The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

45

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time and Brokered Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

FHLB Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.

Subordinated Notes

The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

46

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments:

(dollars in thousands)	Fair Value Hierarchy Level	March 31, 2024				December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	260,212	$	260,212	$	141,252	$	141,252
Debt securities held-to-maturity	Level 2	517,472		458,640		521,439		466,496
Restricted stock	Level 3	5,155		5,155		7,160		7,160
Loans, net	Level 3	3,305,147		3,272,226		3,364,369		3,349,540
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	23,117		23,117		24,534		24,534
Financial liabilities:
Time deposits	Level 3	713,142		705,385		627,253		619,682
Brokered time deposits	Level 3	55,762		55,782		144,880		144,944
Securities sold under agreements to repurchase	Level 2	31,864		31,864		42,442		42,442
FHLB advances	Level 3	12,725		12,524		12,623		12,621
Subordinated notes	Level 3	39,494		37,031		39,474		36,993
Junior subordinated debentures	Level 3	52,804		48,682		52,789		48,529
Accrued interest payable	Level 2	6,316		6,316		6,969		6,969

The Company estimated the fair value of lending related commitments as described in Note 14 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods, and termination clauses provided in the agreements.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.

47

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Financial Instruments

The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Such commitments and conditional obligations were as follows:

	Contractual Amount
(dollars in thousands)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	894,571	$	869,013
Standby letters of credit	24,753		23,732

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.

Allowance for Credit Losses on Unfunded Lending-related Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $3.8 million and $3.8 million as of March 31, 2024 and December 31, 2023, respectively.

48

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Legal Contingencies

In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements.

DeBaere, et al v. Heartland Bank and Trust Company

The Bank was a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company

The Bank was a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction.

On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al and Miller, et al cases in which the Bank would make one-time cash payments totaling $3.4 million, without admitting fault, to release the Bank from further liability and claims in both the cases.

Definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court on December 15, 2023 in the DeBaere, et al case and on February 16, 2024 in the Miller, et al case. The Bank made the one-time cash payments totaling $3.4 million during the fourth quarter of 2023. The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders.

An initial $2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $0.8 million accrual was recognized in other noninterest expense during the second quarter of 2023, following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases.

49

HBT FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

John Pickett v. Town and Country Bank

The Bank is a defendant in a purported class action lawsuit filed in October 2023, in the Circuit Court of Sangamon County, Illinois. The plaintiff, a customer of Town and Country Bank, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

On March 29, 2024, the Bank reached an agreement in principle to settle this case in which the Bank would make a one-time cash payment of $0.3 million, without admitting fault, to release the Bank from further liability and claims in the case. If the proposed settlement agreement is approved by the Court and is not subject to appeal, the Bank will make a one-time cash payment of $0.3 million.

The proposed settlement does not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the case. The Bank has agreed in principle to the settlement to avoid the cost, risks, and distraction of continued litigation. The Company believes the proposed settlement is in the best interests of the Company and its shareholders.

An initial accrual of $0.2 million was recorded during the fourth quarter of 2023, reflecting management's best estimate at that time, and an additional $0.1 million accrual was recorded during the first quarter of 2024. As of March 31, 2024 and December 31, 2023, the Company had $0.3 million and $0.2 million accrued related to this matter, respectively.

50

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context requires otherwise, references in this report to the “Company,” “we,” “us” and “our” refer to HBT Financial, Inc. and its subsidiaries.

The following is management’s discussion and analysis of the financial condition as of March 31, 2024 (unaudited), as compared with December 31, 2023, and the results of operations for the three months ended March 31, 2024 and 2023 (unaudited). Management’s discussion and analysis should be read in conjunction with the Company’s unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 6, 2024. Results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of results to be attained for the year ended December 31, 2024, or for any other period.

OVERVIEW

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. As of March 31, 2024, the Company had total assets of $5.0 billion, loans held for investment of $3.3 billion, and total deposits of $4.4 billion.

Market Area

As of March 31, 2024, our branch network included 66 full-service branch locations throughout Illinois and eastern Iowa. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Loans		Deposits		Loans		Deposits
Central	$	1,686,224	$	3,030,401	$	1,693,794	$	3,094,305
Chicago MSA	1,345,263		1,215,153		1,406,348		1,197,865
Illinois	3,031,487		4,245,554		3,100,142		4,292,170
Iowa	314,475		115,020		304,275		109,267
Total	$	3,345,962	$	4,360,574	$	3,404,417	$	4,401,437

Town and Country Acquisition

On February 1, 2023, HBT Financial completed its acquisition of Town and Country, the holding company for Town and Country Bank. The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois and expanded our footprint into metro-east St. Louis. At the time of acquisition, Town and Country Bank operated 10 full-service branch locations which began operating as branches of Heartland Bank. The core system conversion was successfully completed in April 2023. After considering business combination accounting adjustments, Town and Country added total assets of $937 million, total loans held for investment of $635 million, and total deposits of $720 million.

Total consideration consisted of 3.4 million shares of HBT Financial’s common stock and $38.0 million in cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate consideration was approximately $109.4 million. Goodwill of $30.5 million was recorded in the acquisition. There were no acquisition-related expenses during the three months ended March 31, 2024. Acquisition-related expenses totaled $13.1 million for the three months ended March 31, 2023, including the recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through provision for credit losses.

51

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Economic Conditions

The Company's business and financial performance are affected by economic conditions generally in the U.S. and more directly in the Illinois and Iowa markets where we primarily operate. The significant economic factors that are most relevant to our business and our financial performance include the general economic conditions in the U.S. and in the Company's markets (including the effect of inflationary pressures), unemployment rates, real estate markets, and interest rates.

Interest Rates

Net interest income is our primary source of revenue. Net interest income is equal to the excess of interest income earned on interest earning assets (including discount accretion on purchased loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. The level of interest rates as well as the volume of interest-earning assets and interest-bearing liabilities both impact net interest income. Net interest income is also influenced by both the pricing and mix of interest-earning assets and interest-bearing liabilities which, in turn, are impacted by external factors such as local economic conditions, competition for loans and deposits, the monetary policy of the Federal Reserve Board (“FRB”), and market interest rates.

The cost of our deposits and short-term wholesale borrowings is largely based on short-term interest rates, which are primarily driven by the FRB’s actions. The yields generated by our loans and securities are typically driven by short-term and long-term interest rates, which are set by the market and, to some degree, by the FRB’s actions. Our net interest income is therefore influenced by movements in such interest rates and the pace at which such movements occur. Generally, we expect increases in market interest rates will increase our net interest income and net interest margin in future periods, while decreases in market interest rates may decrease our net interest income and net interest margin in future periods; however, this depends upon the timing and extent of interest rate fluctuations and may not always be the case.

Credit Trends

We focus on originating loans with appropriate risk/reward profiles. We have a detailed loan policy that guides our overall loan origination philosophy and a well-established loan approval process that requires experienced credit officers to approve larger loan relationships. Although we believe our loan approval and credit review processes are strengths that allow us to maintain a high-quality loan portfolio, we recognize that credit trends in the markets in which we operate and in our loan portfolio can materially impact our financial condition and performance and that these trends are primarily driven by the economic conditions in our markets.

Competition

Our profitability and growth are affected by the highly competitive nature of the financial services industry. We compete with community banks in all our markets and, to a lesser extent, with regional and national banks, primarily in the Chicago MSA. Additionally, we compete with non-bank financial services companies, FinTechs and other financial institutions operating within the areas we serve. We compete by emphasizing personalized service and efficient decision-making tailored to individual needs. We do not rely on any individual, group, or entity for a material portion of our loans or our deposits. We continue to see significant competitive pressure on loan rates and terms, as well as deposit pricing, which may affect our financial results in the future.

Digital Banking

Throughout the banking industry, in-person branch traffic is expected to continue to decline as more customers turn to digital banking for routine banking transactions. The COVID-19 pandemic accelerated this transition, and in-person branch traffic is not expected to return to pre-pandemic levels. Additionally, widespread adoption of faster payment and instant payment technologies could require us to substantially increase our expenditures on technology infrastructure, increase our regulatory compliance costs, and adversely impact the stability of our deposit base. We plan to continue investing in our digital banking platforms, while maintaining an appropriately sized branch network. An inability to meet evolving customer expectations, with the appropriate level of security, for both digital and in-person banking may adversely affect our financial results in the future.

52

Regulatory Environment and Trends

We are subject to federal and state regulation and supervision, which continue to evolve as the legal and regulatory framework governing our operations continues to change. The current operating environment includes extensive regulation and supervision in areas such as consumer compliance, the Bank Secrecy Act and anti-money laundering compliance, risk management, and internal audit. We anticipate that this environment of extensive regulation and supervision will continue for the industry. As a result, changes in the regulatory environment may result in additional costs for additional compliance, risk management, and audit personnel or professional fees associated with advisors and consultants.

FACTORS AFFECTING COMPARABILITY OF FINANCIAL RESULTS

JOBS Act Accounting Election

We qualify as an “emerging growth company” under the JOBS Act. The JOBS Act permits us an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Exchange Act, or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. We have elected to use the extended transition period until we are no longer an emerging growth company or until we choose to affirmatively and irrevocably opt out of the extended transition period. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

53

RESULTS OF OPERATIONS

Overview of Recent Financial Results

The following table presents selected financial results and measures:

	Three Months Ended March 31,
(dollars in thousands, except per share amounts)	2024			2023
Total interest and dividend income	$	61,961		$	51,779
Total interest expense	15,273			4,942
Net interest income	46,688			46,837
Provision for credit losses	527			6,210
Net interest income after provision for credit losses	46,161			40,627
Total noninterest income	5,626			7,437
Total noninterest expense	31,268			35,933
Income before income tax expense	20,519			12,131
Income tax expense	5,261			2,923
Net income	$	15,258		$	9,208
Adjusted net income (1)	$	18,073		$	19,859
Net interest income (tax-equivalent basis) (1) (2)	$	47,263		$	47,539
Share and Per Share Information
Earnings per share - Diluted	$	0.48		$	0.30
Adjusted earnings per share - Diluted (1)	0.57			0.64
Weighted average shares of common stock outstanding	31,662,954			30,977,204
Summary Ratios
Net interest margin *	3.94		%	4.20		%
Net interest margin (tax-equivalent basis) * (1) (2)	3.99			4.26
Yield on loans *	6.33			5.80
Yield on interest-earning assets *	5.23			4.64
Cost of interest-bearing liabilities *	1.79			0.63
Cost of total deposits *	1.26			0.24
Cost of funds *	1.37			0.47
Efficiency ratio	58.41		%	65.27		%
Efficiency ratio (tax-equivalent basis) (1) (2)	57.78			64.43
Return on average assets *	1.23		%	0.78		%
Return on average stockholders' equity *	12.42			8.84
Return on average tangible common equity * (1)	14.83			10.45
Adjusted return on average assets * (1)	1.45		%	1.69		%
Adjusted return on average stockholders' equity * (1)	14.72			19.08
Adjusted return on average tangible common equity * (1)	17.57			22.55

_________________________________________________

*    Annualized measure.

(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.

(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

54

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

For the three months ended March 31, 2024, net income was $15.3 million, increasing by $6.1 million, or 65.7%, when compared to net income for the three months ended March 31, 2023. Notable changes include the following:

•There were no Town and Country acquisition-related expenses during the first quarter of 2024, compared to $13.1 million of acquisition-related expenses incurred during the first quarter of 2023;

•Excluding Town and Country acquisition-related expenses, noninterest expense increased by $2.5 million, primarily reflecting one additional month of Town and Country's operations during the first quarter of 2024, compared to the first quarter of 2023, and an increase in salaries and benefits expenses driven by annual merit increases and higher medical benefit costs;

•Net interest income remained relatively stable overall with an increase in funding costs being mostly offset by higher interest-earning asset balances, following the Town and Country merger, and higher yields on interest-earning assets;

•Net losses of $3.4 million were realized on the sale of debt securities during the first quarter of 2024, compared to net losses of $1.0 million realized during the first quarter of 2023;

•A $0.7 million increase in the mortgage servicing rights fair value adjustment, primarily due to changes in prepayment assumptions utilized in the valuations; and

•Impairment losses on bank premises of $0.6 million related to the closure of two branch premises now held for sale were recognized during the first quarter of 2024 which were not present in the first quarter of 2023 results.

Net Interest Income

Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Interest rate spread and net interest margin are utilized to measure and explain changes in net interest income. Interest rate spread is the difference between the yield on interest-earning assets and the rate paid for interest-bearing liabilities that fund those assets. The net interest margin is expressed as the percentage of net interest income to average interest-earning assets. The net interest margin exceeds the interest rate spread because noninterest-bearing sources of funds, principally noninterest-bearing demand deposits and stockholders’ equity, also support interest-earning assets.

The following table sets forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs, discounts and premiums, as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.

55

	Three Months Ended
	March 31, 2024						March 31, 2023
(dollars in thousands)	Average Balance		Interest		Yield/Cost *		Average Balance		Interest		Yield/Cost *
ASSETS
Loans	$	3,371,219	$	53,020	6.33	%	$	3,012,320	$	43,111	5.80	%
Securities	1,221,447		6,847		2.25		1,411,613		7,813		2.24
Deposits with banks	167,297		1,952		4.69		92,363		739		3.24
Other	5,486		142		10.40		7,425		116		6.33
Total interest-earning assets	4,765,449		$	61,961	5.23	%	4,523,721		$	51,779	4.64	%
Allowance for credit losses	(40,238)						(33,301)
Noninterest-earning assets	278,253						274,870
Total assets	$	5,003,464					$	4,765,290
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,127,684	$	1,311	0.47	%	$	1,230,644	$	458	0.15	%
Money market	812,684		4,797		2.37		634,608		935		0.60
Savings	611,224		443		0.29		709,862		178		0.10
Time	664,498		5,925		3.59		356,779		803		0.91
Brokered	82,150		1,117		5.47		—		—		—
Total interest-bearing deposits	3,298,240		13,593		1.66		2,931,893		2,374		0.33
Securities sold under agreements to repurchase	32,456		152		1.89		39,619		38		0.38
Borrowings	13,003		125		3.87		113,896		1,297		4.62
Subordinated notes	39,484		470		4.78		39,403		470		4.83
Junior subordinated debentures issued to capital trusts	52,796		933		7.11		47,586		763		6.50
Total interest-bearing liabilities	3,435,979		$	15,273	1.79	%	3,172,397		$	4,942	0.63	%
Noninterest-bearing deposits	1,036,402						1,121,365
Noninterest-bearing liabilities	37,107						49,316
Total liabilities	4,509,488						4,343,078
Stockholders' Equity	493,976						422,212
Total liabilities and stockholders’ equity	$	5,003,464					$	4,765,290
Net interest income/Net interest margin (1)			$	46,688	3.94	%			$	46,837	4.20	%
Tax-equivalent adjustment (2)			575		0.05				702		0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)			$	47,263	3.99	%			$	47,539	4.26	%
Net interest rate spread (4)					3.44	%					4.01	%
Net interest-earning assets (5)	$	1,329,470					$	1,351,324
Ratio of interest-earning assets to interest-bearing liabilities	1.39						1.43
Cost of total deposits					1.26	%					0.24	%
Cost of funds					1.37						0.47

_________________________________________________

*Annualized measure.

(1)Net interest margin represents net interest income divided by average total interest-earning assets.

(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.

(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

56

The following table sets forth the components of loan interest income and their contributions to the total loan yield.

	Three Months Ended March 31,
	2024				2023
(dollars in thousands)	Interest		Yield Contribution *		Interest		Yield Contribution *
Contractual interest	$	50,517	6.04	%	$	40,976	5.51	%
Loan fees (excluding PPP loans)	1,041		0.12		1,106		0.15
PPP loan fees	—		—		1		—
Accretion of acquired loan discounts	1,195		0.14		813		0.11
Nonaccrual interest recoveries	267		0.03		215		0.03
Total loan interest income	$	53,020	6.33	%	$	43,111	5.80	%

_________________________________________________

*    Annualized measure.

The following table sets forth the components of net interest income and their contributions to the net interest margin.

	Three Months Ended March 31,
	2024				2023
(dollars in thousands)	Interest		Net Interest Margin Contribution *		Interest		Net Interest Margin Contribution *
Interest income:
Contractual interest on loans	$	50,517	4.26	%	$	40,976	3.67	%
Loan fees (excluding PPP loans)	1,041		0.09		1,106		0.10
PPP loan fees	—		—		1		—
Accretion of acquired loan discounts	1,195		0.10		813		0.07
Nonaccrual interest recoveries	267		0.02		215		0.02
Securities	6,847		0.58		7,813		0.70
Interest-bearing deposits in bank	1,952		0.17		739		0.07
Other	142		0.01		116		0.01
Total interest income	61,961		5.23		51,779		4.64
Interest expense:
Deposits	13,593		1.15		2,374		0.21
Other interest-bearing liabilities	1,680		0.14		2,568		0.23
Total interest expense	15,273		1.29		4,942		0.44
Net interest income	46,688		3.94		46,837		4.20
Tax-equivalent adjustment (1)	575		0.05		702		0.06
Net interest income (tax-equivalent) (1) (2)	$	47,263	3.99	%	$	47,539	4.26	%

_________________________________________________

*    Annualized measure.

(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.

57

Rate/Volume Analysis

The following table sets forth the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate), and changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both volume and rate that cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.

	Three Months Ended March 31, 2024 vs. Three Months Ended March 31, 2023
	Increase (Decrease) Due to				Total
(dollars in thousands)	Volume		Rate
Interest-earning assets:
Loans	$	5,413	$	4,496	$	9,909
Securities	(1,065)		99		(966)
Deposits with banks	775		438		1,213
Other	(36)		62		26
Total interest-earning assets	5,087		5,095		10,182
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	(41)		894		853
Money market	330		3,532		3,862
Savings	(28)		293		265
Time	1,155		3,967		5,122
Brokered	1,117		—		1,117
Total interest-bearing deposits	2,533		8,686		11,219
Securities sold under agreements to repurchase	(8)		122		114
Borrowings	(999)		(173)		(1,172)
Subordinated notes	1		(1)		—
Junior subordinated debentures issued to capital trusts	87		83		170
Total interest-bearing liabilities	1,614		8,717		10,331
Change in net interest income	$	3,473	$	(3,622)	$	(149)

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

Net interest income for the three months ended March 31, 2024 was $46.7 million, decreasing $0.1 million, or 0.3%, from the three months ended March 31, 2023. The slight decrease is primarily attributable to an increase in funding costs which were mostly offset by higher interest-earning asset balances, following the Town and Country merger, and higher yields on interest-earning assets.

Net interest margin decreased to 3.94% for the three months ended March 31, 2024, compared to 4.20% for the three months ended March 31, 2023. The decrease was primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields. Additionally, the contribution of acquired loan discount accretion to net interest margin increased to 10 basis points during the three months ended March 31, 2024, compared to 7 basis points during the three months ended March 31, 2023.

58

The quarterly net interest margins were as follows:

	2024		2023
Three months ended:
March 31	3.94	%	4.20	%
June 30	—		4.16
September 30	—		4.07
December 31	—		3.93

Our net interest margin decreased modestly beginning in the second quarter of 2023 as increased competition for deposits drove an increase in our funding costs. This continued during the remainder of 2023 with increases in funding costs outpacing increases in interest-earning asset yields. Our deposit balances and funding costs began to stabilize during the first quarter of 2024, but increases in market interest rates could lead to further increases in funding costs or decreases in core deposit balances which may be replaced by higher cost funding sources, such as FHLB advances and brokered deposits.

Provision for Credit Losses

The following table sets forth the components of provision for credit losses for the periods indicated:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
PROVISION FOR CREDIT LOSSES
Loans	$	560	$	5,101
Unfunded lending-related commitments	(33)		509
Debt securities	—		600
Total provision for credit losses	$	527	$	6,210

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

The Company recorded a provision for credit losses of $0.5 million for the first quarter of 2024. The provision for credit losses primarily reflects a $3.7 million increase in required reserves resulting from changes in qualitative factors; a $2.1 million decrease in required reserves resulting from changes in economic forecasts; a $1.0 million decrease in required reserves driven by a reduction in loan portfolio balances; and a $0.1 million decrease in specific reserves on individually evaluated loans.

Additionally, the first quarter of 2023 results included the recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through provision for credit losses which were related to the Town and Country acquisition and not present in the first quarter of 2024 results.

59

Noninterest Income

The following table sets forth the major categories of noninterest income for the periods indicated:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023		$ Change		% Change
Card income	$	2,616	$	2,658	$	(42)	(1.6)	%
Wealth management fees	2,547		2,338		209		8.9
Service charges on deposit accounts	1,869		1,871		(2)		(0.1)
Mortgage servicing	1,055		1,099		(44)		(4.0)
Mortgage servicing rights fair value adjustment	80		(624)		704		NM
Gains on sale of mortgage loans	298		276		22		8.0
Realized gains (losses) on sales of securities	(3,382)		(1,007)		(2,375)		NM
Unrealized gains (losses) on equity securities	(16)		(22)		6		NM
Gains (losses) on foreclosed assets	87		(10)		97		NM
Gains (losses) on other assets	(635)		—		(635)		NM
Income on bank owned life insurance	164		115		49		42.6
Other noninterest income	943		743		200		26.9
Total	$	5,626	$	7,437	$	(1,811)	(24.4)	%

_________________________________________________

NM    Not meaningful.

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

Total noninterest income for the three months ended March 31, 2024, was $5.6 million, a decrease of $1.8 million, or 24.4%, from the three months ended March 31, 2023. Notable changes in noninterest income include the following:

•Net losses of $3.4 million were realized on the sale of debt securities during the first quarter of 2024, compared to net losses of $1.0 million realized during the first quarter of 2023;

•A $0.7 million increase in the mortgage servicing rights fair value adjustment, primarily due to changes in prepayment assumptions utilized in the valuations;

•Impairment losses on bank premises of $0.6 million related to the closure of two branch premises now held for sale were recognized during the first quarter of 2024 which were not present in the first quarter of 2023 results; and

•A $0.2 million increase in wealth management fees was primarily attributable to higher asset management and trust service fees being partially offset by lower farm management and farmland real estate brokerage fees.

60

Noninterest Expense

The following table sets forth the major categories of noninterest expense for the periods indicated:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023		$ Change		% Change
Salaries	$	16,657	$	19,411	$	(2,754)	(14.2)	%
Employee benefits	2,805		2,335		470		20.1
Occupancy of bank premises	2,582		2,102		480		22.8
Furniture and equipment	550		659		(109)		(16.5)
Data processing	2,925		4,323		(1,398)		(32.3)
Marketing and customer relations	996		836		160		19.1
Amortization of intangible assets	710		510		200		39.2
FDIC insurance	560		563		(3)		(0.5)
Loan collection and servicing	452		278		174		62.6
Foreclosed assets	49		61		(12)		(19.7)
Other noninterest expense	2,982		4,855		(1,873)		(38.6)
Total	$	31,268	$	35,933	$	(4,665)	(13.0)	%

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

Total noninterest expense for the three months ended March 31, 2024, was $31.3 million, a decrease of $4.7 million, or 13.0%, from the three months ended March 31, 2023. Notable changes in noninterest expense include the following:

•There were no Town and Country acquisition-related noninterest expenses for the three months ended March 31, 2024, but acquisition-related noninterest expenses totaled $7.1 million during the three months ended March 31, 2023; and

•Excluding Town and Country acquisition-related expenses, the $2.5 million increase in noninterest expense primarily reflects one additional month of Town and Country's operations during the first quarter of 2024 compared to 2023, as well as an increase in salaries and benefits expenses driven by annual merit increases and higher medical benefit costs.

Income Taxes

During the three months ended March 31, 2024 and 2023, we recorded income tax expense of $5.3 million, or an effective tax rate of 25.6%, and $2.9 million, or an effective tax rate of 24.1%, respectively. The fluctuations in effective tax rate are primarily attributable to changes in the proportion of federally tax-exempt interest income to pre-tax income.

61

FINANCIAL CONDITION

(dollars in thousands, except per share data)	March 31, 2024			December 31, 2023			$ Change		% Change
Consolidated Balance Sheet Information
Cash and cash equivalents	$	260,212		$	141,252		$	118,960	84.2	%
Debt securities available-for-sale, at fair value	669,020			759,461			(90,441)		(11.9)
Debt securities held-to-maturity	517,472			521,439			(3,967)		(0.8)
Loans held for sale	3,479			2,318			1,161		50.1
Loans, before allowance for credit losses	3,345,962			3,404,417			(58,455)		(1.7)
Less: allowance for credit losses	40,815			40,048			767		1.9
Loans, net of allowance for credit losses	3,305,147			3,364,369			(59,222)		(1.8)
Goodwill	59,820			59,820			—		—
Intangible assets, net	19,972			20,682			(710)		(3.4)
Other assets	205,388			203,829			1,559		0.8
Total assets	$	5,040,510		$	5,073,170		$	(32,660)	(0.6)	%
Total deposits	$	4,360,574		$	4,401,437		$	(40,863)	(0.9)	%
Securities sold under agreements to repurchase	31,864			42,442			(10,578)		(24.9)
Borrowings	12,725			12,623			102		0.8
Subordinated notes	39,494			39,474			20		0.1
Junior subordinated debentures	52,804			52,789			15		—
Other liabilities	46,368			34,909			11,459		32.8
Total liabilities	4,543,829			4,583,674			(39,845)		(0.9)
Total stockholders' equity	496,681			489,496			7,185		1.5
Total liabilities and stockholders' equity	$	5,040,510		$	5,073,170		$	(32,660)	(0.6)	%
Tangible assets (1)	$	4,960,718		$	4,992,668		$	(31,950)	(0.6)	%
Tangible common equity (1)	416,889			408,994			7,895		1.9
Core deposits (1)	$	4,133,419		$	4,126,374		$	7,045	0.2	%
Share and Per Share Information
Book value per share	$	15.71		$	15.44
Tangible book value per share (1)	13.19			12.90
Shares of common stock outstanding	31,612,888			31,695,828
Balance Sheet Ratios
Loan to deposit ratio	76.73		%	77.35		%
Core deposits to total deposits (1)	94.79			93.75
Stockholders' equity to total assets	9.85			9.65
Tangible common equity to tangible assets (1)	8.40			8.19

_________________________________________________

(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.

62

Notable changes in our consolidated balance sheet include the following:

•Debt securities decreased $94.4 million, largely due to the sale of $66.8 million of municipal securities with sales proceeds used to reduce wholesale funding. Additionally, paydowns, maturities, and calls of debt securities generated another $29.6 million of cash proceeds;

•Loans decreased by $58.5 million with lower line of credit utilization as well as early payoffs of loans;

•The $40.9 million decrease in total deposits was primarily attributable to an $89.1 million decrease in brokered deposits, partially offset by the addition of $33.9 million of time deposits from a State of Illinois loan matching program which are a lower cost source of funding; and

•The $119.0 million increase in cash and cash equivalents was primarily the result of the items noted above.

Loan Portfolio

The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.

	March 31, 2024				December 31, 2023
(dollars in thousands)	Balance		Percent		Balance		Percent
Commercial and industrial	$	402,206	12.0	%	$	427,800	12.6	%
Commercial real estate - owner occupied	294,967		8.8		295,842		8.7
Commercial real estate - non-owner occupied	890,251		26.6		880,681		25.9
Construction and land development	345,991		10.4		363,983		10.7
Multi-family	421,573		12.6		417,923		12.3
One-to-four family residential	485,948		14.5		491,508		14.4
Agricultural and farmland	287,205		8.6		287,294		8.4
Municipal, consumer, and other	217,821		6.5		239,386		7.0
Loans, before allowance for credit losses	3,345,962		100.0	%	3,404,417		100.0	%
Allowance for credit losses	(40,815)				(40,048)
Loans, net of allowance for credit losses	$	3,305,147			$	3,364,369

Loans, before allowance for credit losses were $3.35 billion at March 31, 2024, a decrease of $58.5 million, or 1.7%, from December 31, 2023. Notable changes included with the following:

•A $28.3 million decrease in line utilization on existing lines of credit, including $13.2 million drawn on two customers' lines of credit in late December 2023 that paid off in early January 2024;

•Across the portfolio, early payoffs of loans maturing or repricing beyond 2024 and with fixed rates of 4.00% or less totaled $14.4 million;

•Construction and land development loans decreased by $18.0 million with several completed projects shifting to other loan categories; and

•Although grain elevator lines of credit increased $5.7 million during the first quarter of 2024, seasonal line utilization was significantly lower relative to historical levels.

As of March 31, 2024, office commercial real estate loans totaled $167.3 million, with 3.5% rated pass-watch, less than 0.1% rated substandard, and 1.6% was past due 30 days or more. Management regularly monitors office and other industry concentrations within the loan portfolio.

63

Loan Portfolio Maturities

The following table summarizes the scheduled maturities of the loan portfolio as of March 31, 2024. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in one year or less.

(dollars in thousands)	1 Year or Less		After 1 Year Through 5 Years		After 5 Years Through 15 Years		After 15 Years		Total
Commercial and industrial	$	201,270	$	168,556	$	32,380	$	—	$	402,206
Commercial real estate - owner occupied	41,257		149,214		97,102		7,394		294,967
Commercial real estate - non-owner occupied	154,979		544,423		185,285		5,564		890,251
Construction and land development	176,269		151,832		17,408		482		345,991
Multi-family	59,231		288,935		72,048		1,359		421,573
One-to-four family residential	47,735		200,234		111,986		125,993		485,948
Agricultural and farmland	124,518		117,055		41,205		4,427		287,205
Municipal, consumer, and other	64,174		51,614		73,691		28,342		217,821
Total	$	869,433	$	1,671,863	$	631,105	$	173,561	$	3,345,962

The following table summarizes loans maturing after one year, segregated into variable and fixed interest rates.

	Variable Interest Rates
(dollars in thousands)	Repricing 1 Year or Less		Repricing After 1 Year		Total Variable Interest Rates		Predetermined (Fixed) Interest Rates		Total
Commercial and industrial	$	44,644	$	7,805	$	52,449	$	148,487	$	200,936
Commercial real estate - owner occupied	39,368		37,954		77,322		176,388		253,710
Commercial real estate - non-owner occupied	115,076		23,799		138,875		596,397		735,272
Construction and land development	53,522		4,029		57,551		112,171		169,722
Multi-family	50,179		30,180		80,359		281,983		362,342
One-to-four family residential	79,410		71,764		151,174		287,039		438,213
Agricultural and farmland	4,644		9,281		13,925		148,762		162,687
Municipal, consumer, and other	25,670		25,868		51,538		102,109		153,647
Total	$	412,513	$	210,680	$	623,193	$	1,853,336	$	2,476,529

64

Nonperforming Assets

The following table sets forth information concerning nonperforming loans and nonperforming assets as of each of the dates indicated.

(dollars in thousands)	March 31, 2024			December 31, 2023
NONPERFORMING ASSETS
Nonaccrual	$	9,657		$	7,820
Past due 90 days or more, still accruing	—			37
Total nonperforming loans	9,657			7,857
Foreclosed assets	277			852
Total nonperforming assets	$	9,934		$	8,709
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	2,676		$	2,641
Allowance for credit losses	$	40,815		$	40,048
Loans, before allowance for credit losses	3,345,962			3,404,417
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses	1.22		%	1.18		%
Allowance for credit losses to nonaccrual loans	422.65			512.12
Allowance for credit losses to nonperforming loans	422.65			509.71
Nonaccrual loans to loans, before allowance for credit losses	0.29			0.23
Nonperforming loans to loans, before allowance for credit losses	0.29			0.23
Nonperforming assets to total assets	0.20			0.17
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets	0.30			0.26

Total nonperforming assets were $9.9 million at March 31, 2024, increasing by $1.2 million since December 31, 2023. The increase was primarily attributable to the movement of a few commercial and industrial and commercial real estate - owner occupied credits to nonaccrual status which was partially offset by the sale of several foreclosed properties. Additionally, of the $9.7 million of nonperforming loans held as of March 31, 2024, $2.7 million are either wholly or partially guaranteed by the U.S. Government.

Risk Classification of Loans

Our risk classifications of loans were as follows:

(dollars in thousands)	March 31, 2024		December 31, 2023
Pass	$	3,168,224	$	3,241,889
Pass-watch	109,282		98,206
Substandard	68,456		64,322
Doubtful	—		—
Total	$	3,345,962	$	3,404,417

Pass-watch loans increased $11.1 million, or 11.3%, and substandard loans increased $4.1 million, or 6.4%, from December 31, 2023 to March 31, 2024. The increase in pass-watch loans was primarily attributable to the downgrade of two commercial real estate - non-owner occupied credits, and the increase in substandard loans was primarily attributable to the downgrade of one commercial and industrial credit.

65

Net Charge-offs (Recoveries)

The following table summarizes net charge-offs (recoveries) to average loans, before allowance for credit losses, by loan category.

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Net charge-offs (recoveries)
Commercial and industrial	$	(11)		$	(19)
Commercial real estate - owner occupied	(2)			(9)
Commercial real estate - non-owner occupied	(242)			(74)
Construction and land development	(1)			(3)
Multi-family	—			—
One-to-four family residential	(63)			(36)
Agricultural and farmland	(7)			(1)
Municipal, consumer, and other	119			30
Total	$	(207)		$	(112)
Average loans
Commercial and industrial	$	411,384		$	325,411
Commercial real estate - owner occupied	297,342			276,225
Commercial real estate - non-owner occupied	882,704			814,702
Construction and land development	366,912			379,677
Multi-family	414,315			341,301
One-to-four family residential	491,769			434,969
Agricultural and farmland	277,439			227,230
Municipal, consumer, and other	229,354			212,805
Total	$	3,371,219		$	3,012,320
Charge-offs (recoveries) to average loans *
Commercial and industrial	(0.01)		%	(0.02)		%
Commercial real estate - owner occupied	—			(0.01)
Commercial real estate - non-owner occupied	(0.11)			(0.04)
Construction and land development	—			—
Multi-family	—			—
One-to-four family residential	(0.05)			(0.03)
Agricultural and farmland	(0.01)			—
Municipal, consumer, and other	0.21			0.06
Total	(0.02)		%	(0.02)		%

_________________________________________________

*    Annualized measure.

The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of loan losses, we also recognize that substantial federal economic stimulus following the COVID-19 pandemic and the relatively stable economic conditions after the pandemic have also contributed to reduced loan losses.

66

Securities

The Company’s investment policy emphasizes safety of the principal, liquidity needs, expected returns, cash flow targets, and consistency with our interest rate risk management strategy. The composition and maturities of the debt securities portfolio as of March 31, 2024, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Security yields have not been adjusted to a tax-equivalent basis.

	March 31, 2024
	Available-for-Sale				Held-to-Maturity				Total
(dollars in thousands)	Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield		Amortized Cost		Weighted Average Yield
Due in 1 year or less
U.S. Treasury	$	40,099	1.42	%	$	—	—	%	$	40,099	1.42	%
U.S. government agency	3,376		2.59		—		—		3,376		2.59
Municipal	3,226		2.95		2,791		3.62		6,017		3.26
Mortgage-backed:
Agency residential	40		2.78		—		—		40		2.78
Agency commercial	6,318		3.38		—		—		6,318		3.38
Total	$	53,059	1.82	%	$	2,791	3.62	%	$	55,850	1.91	%
Due after 1 year through 5 years
U.S. Treasury	$	89,987	1.27	%	$	—	—	%	$	89,987	1.27	%
U.S. government agency	41,433		2.57		27,205		2.14		68,638		2.40
Municipal	37,209		1.74		17,543		3.07		54,752		2.17
Mortgage-backed:
Agency residential	12,939		2.79		8,224		1.62		21,163		2.34
Agency commercial	65,837		1.79		36,214		2.87		102,051		2.17
Corporate	24,930		5.00		—		—		24,930		5.00
Total	$	272,335	2.07	%	$	89,186	2.57	%	$	361,521	2.20	%
Due after 5 years through 10 years
U.S. Treasury	$	19,611	1.62	%	$	—	—	%	$	19,611	1.62	%
U.S. government agency	9,027		2.26		58,158		2.62		67,185		2.57
Municipal	95,869		1.72		15,548		3.48		111,417		1.96
Mortgage-backed:
Agency residential	64,585		2.15		3,352		3.51		67,937		2.22
Agency commercial	28,208		1.61		219,914		1.86		248,122		1.83
Corporate	30,764		4.02		—		—		30,764		4.02
Total	$	248,064	2.11	%	$	296,972	2.11	%	$	545,036	2.11	%
Due after 10 years
U.S. government agency	$	—	—	%	$	3,091	2.83	%	$	3,091	2.83	%
Municipal	20,099		1.65		2,577		3.39		22,676		1.85
Mortgage-backed:
Agency residential	105,989		3.02		82,161		3.65		188,150		3.30
Agency commercial	38,510		2.29		40,694		1.87		79,204		2.08
Corporate	2,000		4.50		—		—		2,000		4.50
Total	$	166,598	2.71	%	$	128,523	3.06	%	$	295,121	2.86	%
Total
U.S. Treasury	$	149,697	1.36	%	$	—	—	%	$	149,697	1.36	%
U.S. government agency	53,836		2.52		88,454		2.48		142,290		2.49
Municipal	156,403		1.74		38,459		3.30		194,862		2.05
Mortgage-backed:
Agency residential	183,553		2.70		93,737		3.47		277,290		2.96
Agency commercial	138,873		1.96		296,822		1.98		435,695		1.98
Corporate	57,694		4.46		—		—		57,694		4.46
Total	$	740,056	2.21	%	$	517,472	2.43	%	$	1,257,528	2.30	%

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SOURCES OF FUNDS

Deposits

Management continues to focus on growing deposits through the Company’s relationship-driven banking philosophy and community-focused marketing programs. Additionally, the Bank continues to add and improve digital banking services to solidify deposit relationships.

The following table sets forth the distribution of average deposits, by account type:

	Three Months Ended March 31,												Percent Change in Average Balance
	2024						2023
(dollars in thousands)	Average Balance		Percent of Total Deposits		Weighted Average Cost *		Average Balance		Percent of Total Deposits		Weighted Average Cost *
Noninterest-bearing	$	1,036,402	23.9	%	—	%	$	1,121,365	27.7	%	—	%	(7.6)	%
Interest-bearing demand	1,127,684		26.0		0.47		1,230,644		30.4		0.15		(8.4)
Money market	812,684		18.8		2.37		634,608		15.6		0.60		28.1
Savings	611,224		14.1		0.29		709,862		17.5		0.10		(13.9)
Time	664,498		15.3		3.59		356,779		8.8		0.91		86.2
Brokered	82,150		1.9		5.47		—		—		—		100.0
Total deposits	$	4,334,642	100.0	%	1.26	%	$	4,053,258	100.0	%	0.24	%	6.9	%

_________________________________________________

*Annualized measure.

The increase in average deposits balances in 2024 compared to 2023 is primarily attributable to the Town and Country merger which added $720.4 million of deposits on February 1, 2023. Increased market interest rates and competition for deposits drove an increase in deposit costs throughout 2023 as well as a shift from lower to higher cost deposit products. Additionally, we brought the majority of our wealth management customer reciprocal deposits on balance sheet in December 2023, which increased average money market deposits by $142.4 million during the three months ended March 31, 2024.

As of March 31, 2024, the Company had $55.8 million of wholesale brokered deposits outstanding. Brokered deposits are generally considered to be deposits that have been received from a third party who is engaged in the business of placing deposits on behalf of others. A traditional deposit broker will direct deposits to the banking institution offering the highest interest rate available. Federal banking laws and regulations place restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship based and are at a greater risk of being withdrawn and placed on deposit at another institution offering a higher interest rate, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts.

The following table sets forth time deposits by remaining maturity as of March 31, 2024:

(dollars in thousands)	3 Months or Less		Over 3 through 6 Months		Over 6 through 12 Months		Over 12 Months		Total
Time and brokered time deposits:
Amounts less than $100,000	$	105,985	$	103,418	$	115,414	$	37,669	$	362,486
Amounts of $100,000 or more but less than $250,000	57,543		96,712		67,912		12,858		235,025
Amounts of $250,000 or more	42,648		45,427		76,098		7,220		171,393
Total time and brokered time deposits	$	206,176	$	245,557	$	259,424	$	57,747	$	768,904

As of March 31, 2024 and December 31, 2023, the Bank’s uninsured deposits were estimated to be $867.9 million and $867.7 million, respectively.

68

LIQUIDITY

Bank Liquidity

The overall objective of bank liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. The Bank manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.

The Bank continuously monitors its liquidity positions to ensure that assets and liabilities are managed in a manner that will meet all of our short-term and long-term cash requirements. The Bank manages its liquidity position to meet our daily cash flow needs, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives. The Bank also monitors liquidity requirements in light of interest rate trends, changes in the economy, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.

As part of the Bank’s liquidity management strategy, the Bank is also focused on minimizing costs of liquidity and attempts to decrease these costs by promoting noninterest-bearing and low-cost deposits. While the Bank does not control the types of deposit instruments our clients choose, those choices can be influenced with the rates and the deposit specials offered.

Additional sources of liquidity include unpledged securities, federal funds purchased, borrowings from the FHLB and Federal Reserve, and brokered deposits. Unpledged securities may be sold or pledged as collateral for borrowings to meet liquidity needs. Interest is charged at the prevailing market rate.

As of March 31, 2024, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Bank. As of March 31, 2024, the Bank had no material commitments for capital expenditures.

Holding Company Liquidity

The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of March 31, 2024, the Holding Company had cash and cash equivalents of $12.8 million.

The Holding Company’s main source of funding is dividends declared and paid to it by the Bank. Due to state banking laws, the Bank may not declare dividends in any calendar year in an amount that would exceed accumulated retained earnings, after giving effect to any unrecognized losses and bad debts, without the prior approval of the Illinois Department of Financial and Professional Regulation. In addition, dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Management believes that these limitations will not impact the Holding Company’s ability to meet its ongoing short-term cash obligations. During the three months ended March 31, 2024 and 2023, the Bank paid $8.0 million and $25.0 million in dividends to the Holding Company, respectively.

The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on the subordinated notes and junior subordinated debentures, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended March 31, 2024 and 2023, holding company operating expenses consisted of interest expense of $1.4 million and $1.2 million, respectively, and other operating expenses of $1.1 million and $2.2 million, respectively.

Additionally, the Holding Company paid $6.1 million and $5.5 million of dividends to stockholders during the three months ended March 31, 2024 and 2023, respectively. The Holding Company also paid $38.0 million in cash consideration in the acquisition of Town and Country during the first quarter of 2023.

As of March 31, 2024, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Holding Company’s liquidity.

69

As of March 31, 2024, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Holding Company. As of March 31, 2024, the Holding Company had no material commitments for capital expenditures.

CAPITAL RESOURCES

The overall objectives of capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. The Company seeks to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.

Regulatory Capital Requirements

The Company and Bank are each subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank.

In addition to meeting minimum capital requirements, the Company and the Bank must also maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer requirement is 2.5% of risk-weighted assets.

As of March 31, 2024 and December 31, 2023, the Company and the Bank met all capital adequacy requirements to which they were subject. As of those dates, the Bank was “well capitalized” under the regulatory prompt corrective action provisions.

The following table sets forth actual capital ratios of the Company and the Bank as of the dates indicated, as well as the minimum ratios for capital adequacy purposes with the capital conservation buffer, and the minimum ratios to be well capitalized under regulatory prompt corrective action provisions.

	March 31, 2024		December 31, 2023		For Capital Adequacy Purposes With Capital Conversation Buffer (1)		To Be Well Capitalized Under Prompt Corrective Action Provisions (2)
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	15.79	%	15.33	%	10.50	%	N/A
Tier 1 Capital (to Risk Weighted Assets)	13.77		13.42		8.50		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.44		12.12		7.00		N/A
Tier 1 Capital (to Average Assets)	10.65		10.49		4.00		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	15.45	%	14.92	%	10.50	%	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	14.44		14.01		8.50		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	14.44		14.01		7.00		6.50
Tier 1 Capital (to Average Assets)	11.17		10.96		4.00		5.00

_________________________________________________

(1)The Tier 1 capital to average assets ratio (known as the “leverage ratio”) is not impacted by the capital conservation buffer.

(2)The prompt corrective action provisions are not applicable to bank holding companies.

N/A   Not applicable.

As of March 31, 2024, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Company’s capital resources.

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Cash Dividends

During 2023, the Company paid quarterly cash dividends of $0.17 per share. On January 23, 2024, the Company announced an increase of $0.02 and paid a $0.19 per share dividend during the first quarter of 2024.

Stock Repurchase Program

Under the Company’s stock repurchase program, the Company repurchased 179,281 shares of its common stock at a weighted average price of $18.93 during the three months ended March 31, 2024. The Company’s Board of Directors authorized the repurchase of up to $15.0 million of its common stock under its stock repurchase program in effect until January 1, 2025. As of March 31, 2024, the Company had $11.6 million remaining under the current stock repurchase authorization.

OFF-BALANCE SHEET ARRANGEMENTS

As a financial services provider, the Bank routinely is a party to various financial instruments with off-balance sheet risks, such as commitments to extend credit, standby letters of credit, unused lines of credit, commitments to sell loans, and interest rate swaps. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process afforded to loans originated by the Bank. For additional information, see “Note 14 – Commitments and Contingencies” to the consolidated financial statements.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting estimates are those that are critical to the portrayal and understanding of the Company’s financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company’s critical accounting estimates. The following accounting estimate could be deemed critical:

Allowance for Credit Losses

The allowance for credit losses reflects an estimate of lifetime expected credit losses. Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is established through a provision for credit losses which is charged to expense. Additions to the allowance for credit losses are expected to maintain the adequacy of the total allowance for credit losses. Loan losses are charged off against the allowance for credit losses when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance for credit losses.

Management uses the discounted cash flow method to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. The Company uses regression analysis of historical internal and peer data to determine which macroeconomic variables are most closely correlated with credit losses, such as the unemployment rate and changes in GDP. Management leverages economic projections from a reputable third party to inform its economic forecasts with a reversion to historical averages for periods beyond a reasonable and supportable forecast period.

Nonaccrual loans and loans which do not share risk characteristics with other loans in the pool are individually evaluated to determine expected credit losses.

The allowance for credit losses on unfunded commitments is estimated in the same manner as the associated loans adjusted for anticipated funding rate.

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NON-GAAP FINANCIAL INFORMATION

This Quarterly Report on Form 10-Q contains certain financial information determined by methods other than those in accordance with GAAP. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures below.

Non-GAAP Financial Measure	Definition	How the Measure Provides Useful Information to Investors
Adjusted Net Income	•Net income, with the following adjustments: -excludes acquisition expenses, including the day 2 provision for credit losses on non-PCD loans and unfunded commitments, -excludes branch closure expenses, -excludes net earnings (losses) from closed or sold operations, -excludes gains (losses) on closed branch premises, -excludes realized gains (losses) on sales of securities, -excludes mortgage servicing rights fair value adjustment, and -the income tax effect of these pre-tax adjustments.	•Enhances comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. •We also sometimes refer to ratios that include Adjusted Net Income, such as: -Adjusted Return on Average Assets, which is Adjusted Net Income divided by average assets. -Adjusted Return on Average Equity, which is Adjusted Net Income divided by average equity. -Adjusted Earnings Per Share - Basic, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding. -Adjusted Earnings Per Share – Diluted, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding, including all dilutive potential shares.
Net Interest Income (Tax Equivalent Basis)	•Net interest income adjusted for the tax-favored status of tax-exempt loans and securities. (1)	•We believe the tax equivalent basis is the preferred industry measurement of net interest income. •Enhances comparability of net interest income arising from taxable and tax-exempt sources. •We also sometimes refer to Net Interest Margin (Tax Equivalent Basis), which is Net Interest Income (Tax Equivalent Basis) divided by average interest-earning assets.
Efficiency Ratio (Tax Equivalent Basis)	•Noninterest expense less amortization of intangible assets divided by the sum of net interest income (tax equivalent basis) and noninterest income. (1)	•Provides a measure of productivity in the banking industry. •Calculated to measure the cost of generating one dollar of revenue. That is, the ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.

_________________________________________________

(1)Tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

72

Non-GAAP Financial Measure	Definition	How the Measure Provides Useful Information to Investors
Ratio of Tangible Common Equity to Tangible Assets	•Tangible Common Equity is total stockholders’ equity less goodwill and other intangible assets. •Tangible Assets is total assets less goodwill and other intangible assets.	•Generally used by investors, our management, and banking regulators to evaluate capital adequacy. •Facilitates comparison of our earnings with the earnings of other banking organization with significant amounts of goodwill or intangible assets. •We also sometimes refer to ratios that include Tangible Common Equity, such as: -Tangible Book Value Per Share, which is Tangible Common Equity divided by shares of common stock outstanding. -Return on Average Tangible Common Equity, which is net income divided by average Tangible Common Equity. -Adjusted Return on Average Tangible Common Equity, which is Adjusted Net Income divided by average Tangible Common Equity.
Core Deposits	•Total deposits, excluding: -Time deposits of $250,000 or more, and -Brokered deposits	•Provides investors with information regarding the stability of the Company’s sources of funds. •We also sometimes refer to the ratio of Core Deposits to total deposits.

73

Reconciliation of Non-GAAP Financial Measure —

Adjusted Net Income and Adjusted Return on Average Assets

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Net income	$	15,258		$	9,208
Adjustments:
Acquisition expenses (1)	—			(13,064)
Gains (losses) on closed branch premises	(635)			—
Realized gains (losses) on sales of securities	(3,382)			(1,007)
Mortgage servicing rights fair value adjustment	80			(624)
Total adjustments	(3,937)			(14,695)
Tax effect of adjustments	1,122			4,044
Total adjustments after tax effect	(2,815)			(10,651)
Adjusted net income	$	18,073		$	19,859
Average assets	$	5,003,464		$	4,765,290
Return on average assets *	1.23		%	0.78		%
Adjusted return on average assets *	1.45			1.69

_________________________________________________

*    Annualized measure.

(1)Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023 in accordance with ASC 326 which was adopted on January 1, 2023.

74

Reconciliation of Non-GAAP Financial Measure —

Adjusted Earnings Per Share

	Three Months Ended March 31,
(dollars in thousands, except per share amounts)	2024		2023
Numerator:
Net income	$	15,258	$	9,208
Earnings allocated to participating securities (1)	—		(5)
Numerator for earnings per share - basic and diluted	$	15,258	$	9,203
Adjusted net income	$	18,073	$	19,859
Earnings allocated to participating securities (1)	—		(13)
Numerator for adjusted earnings per share - basic and diluted	$	18,073	$	19,846
Denominator:
Weighted average common shares outstanding	31,662,954		30,977,204
Dilutive effect of outstanding restricted stock units	140,233		69,947
Weighted average common shares outstanding, including all dilutive potential shares	31,803,187		31,047,151
Earnings per share - Basic	$	0.48	$	0.30
Earnings per share - Diluted	$	0.48	$	0.30
Adjusted earnings per share - Basic	$	0.57	$	0.64
Adjusted earnings per share - Diluted	$	0.57	$	0.64

_________________________________________________

(1)The Company previously granted restricted stock units that contained non-forfeitable rights to dividend equivalents which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

75

Reconciliation of Non-GAAP Financial Measure —

Net Interest Income and Net Interest Margin (Tax Equivalent Basis)

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Net interest income (tax-equivalent basis)
Net interest income	$	46,688		$	46,837
Tax-equivalent adjustment (1)	575			702
Net interest income (tax-equivalent basis) (1)	$	47,263		$	47,539
Net interest margin (tax-equivalent basis)
Net interest margin *	3.94		%	4.20		%
Tax-equivalent adjustment (1)	0.05			0.06
Net interest margin (tax-equivalent basis) (1)	3.99		%	4.26		%
Average interest-earning assets	$	4,765,449		$	4,523,721

_________________________________________________

*    Annualized measure.

(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measure —

Efficiency Ratio (Tax Equivalent Basis)

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Efficiency ratio (tax-equivalent basis)
Total noninterest expense	$	31,268		$	35,933
Less: amortization of intangible assets	710			510
Noninterest expense excluding amortization of intangible assets	$	30,558		$	35,423
Net interest income	$	46,688		$	46,837
Total noninterest income	5,626			7,437
Operating revenue	52,314			54,274
Tax-equivalent adjustment (1)	575			702
Operating revenue (tax-equivalent basis) (1)	$	52,889		$	54,976
Efficiency ratio	58.41		%	65.27		%
Efficiency ratio (tax-equivalent basis) (1)	57.78			64.43

_________________________________________________

(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

76

Reconciliation of Non-GAAP Financial Measure —

Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

(dollars in thousands, except per share data)	March 31, 2024			December 31, 2023
Tangible Common Equity
Total stockholders' equity	$	496,681		$	489,496
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	19,972			20,682
Tangible common equity	$	416,889		$	408,994
Tangible Assets
Total assets	$	5,040,510		$	5,073,170
Less: Goodwill	59,820			59,820
Less: Intangible assets, net	19,972			20,682
Tangible assets	$	4,960,718		$	4,992,668
Total stockholders' equity to total assets	9.85		%	9.65		%
Tangible common equity to tangible assets	8.40			8.19
Shares of common stock outstanding	31,612,888			31,695,828
Book value per share	$	15.71		$	15.44
Tangible book value per share	13.19			12.90

Reconciliation of Non-GAAP Financial Measure —

Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders’ Equity, and Adjusted Return on Average Tangible Common Equity

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Average Tangible Common Equity
Total stockholders' equity	$	493,976		$	422,212
Less: Goodwill	59,820			49,352
Less: Intangible assets, net	20,334			15,635
Average tangible common equity	$	413,822		$	357,225
Net income	$	15,258		$	9,208
Adjusted net income	18,073			19,859
Return on average stockholders' equity *	12.42		%	8.84		%
Return on average tangible common equity *	14.83			10.45
Adjusted return on average stockholders' equity *	14.72		%	19.08		%
Adjusted return on average tangible common equity *	17.57			22.55

_________________________________________________

*    Annualized measure.

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Reconciliation of Non-GAAP Financial Measure —

Core Deposits

(dollars in thousands)	March 31, 2024			December 31, 2023
Core Deposits
Total deposits	$	4,360,574		$	4,401,437
Less: time deposits of $250,000 or more	171,393			130,183
Less: brokered deposits	55,762			144,880
Core deposits	$	4,133,419		$	4,126,374
Core deposits to total deposits	94.79		%	93.75		%

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Managing risk is an essential part of successfully managing a financial institution. Our most prominent risk exposures are interest rate risk and credit risk.

Interest Rate Risk

Our most significant form of market risk is interest rate risk inherent in the normal course of lending and deposit-taking activities. Interest rate risk is the potential reduction of net interest income as a result of changes in interest rates. Management believes that our ability to successfully respond to changes in interest rates will have a significant impact on our financial results. To that end, management actively monitors and manages our interest rate exposure.

The Company’s Asset/Liability Management Committee (“ALCO”), which is authorized by the Company’s board of directors, monitors our interest rate sensitivity and makes decisions relating to that process. The ALCO’s goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a rising or declining interest rate environment. Profitability is affected by fluctuations in interest rates. A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis.

We monitor the impact of changes in interest rates on our net interest income and economic value of equity (“EVE”) using rate shock analysis. Net interest income simulations measure the short-term earnings exposure from changes in market rates of interest in a rigorous and explicit fashion. Our current financial position is combined with assumptions regarding future business to calculate net interest income under varying hypothetical rate scenarios. EVE measures our long-term earnings exposure from changes in market rates of interest. EVE is defined as the present value of assets minus the present value of liabilities at a point in time. A decrease in EVE due to a specified rate change indicates a decline in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet.

79

The following table sets forth the estimated impact on our EVE and net interest income of immediate and parallel changes in interest rates at the specified levels.

Change in Interest Rates (basis points)	Estimated Increase (Decrease) in EVE		Increase (Decrease) in Estimated Net Interest Income
			Year 1		Year 2
March 31, 2024
+400	18.5	%	9.0	%	14.5	%
+300	15.7		6.7		11.2
+200	11.3		4.2		7.2
+100	6.3		1.8		3.4
-100	(8.4)		(5.0)		(6.6)
-200	(19.0)		(8.1)		(12.0)
-300	(15.7)		(11.2)		(17.8)
-400	(5.6)		(12.6)		(20.5)
December 31, 2023
+400	10.7	%	7.5	%	13.0	%
+300	9.7		5.8		10.3
+200	7.1		3.4		6.4
+100	4.2		1.4		3.1
-100	(6.3)		(4.4)		(6.1)
-200	(13.2)		(7.1)		(11.2)
-300	(4.5)		(9.5)		(16.0)
-400	5.4		(10.2)		(17.3)

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in EVE and net interest income requires that we make certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The EVE and net interest income table presented above assumes that the composition of our interest-rate-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and, accordingly, the data does not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts based on local competitive factors, which could change the actual impact on EVE and net interest income. The table also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or the repricing characteristics of specific assets and liabilities. Accordingly, although the EVE and net interest income table provides an indication of our sensitivity to interest rate changes at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

Credit Risk

Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We manage and control credit risk in the loan portfolio by adhering to well-defined underwriting criteria and account administration standards established by management. Our loan policy documents underwriting standards, approval levels, exposure limits and other limits or standards deemed necessary and prudent. Portfolio diversification at the borrower, industry, and product levels is actively managed to mitigate concentration risk. In addition, credit risk management also includes an independent loan review process that assesses compliance with loan policy, compliance with loan documentation standards, accuracy of the risk rating and overall credit quality of the loan portfolio.

80

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report was carried out under the supervision and with the participation of the Company’s Chief Executive Officer, Chief Financial Officer and other members of the Company’s senior management. The Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2024, the end of the period covered by this report, the Company’s disclosure controls and procedures were effective in ensuring that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is: (i) accumulated and communicated to the Company’s management (including the Chief Executive Officer and Chief Financial Officer) to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) or Rule 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

81

PART II. OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are sometimes party to legal actions that are routine and incidental to our business. Management, in consultation with legal counsel, does not expect the ultimate disposition of any or a combination of these matters to have a material adverse effect on our assets, business, cash flow, financial condition, liquidity, prospects and results of operations; however, given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to our business, including laws and regulations governing consumer protection, fair lending, fair labor, privacy, information security, and anti-money laundering and anti-terrorism laws, we, like all banking organizations, are subject to heightened legal and regulatory compliance and litigation risk.

ITEM 1A.    RISK FACTORS

There have been no material changes to the risk factors disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 6, 2024.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Unregistered Sales of Equity Securities

None.

Issuer Purchases of Equity Securities

On December 19, 2023, the Company’s board of directors approved a stock repurchase program that authorizes the Company to repurchase up to $15.0 million of its common stock. The stock repurchase program will be in effect until January 1, 2025, with the timing of purchases and number of shares repurchased dependent upon a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The Company is not obligated to purchase any shares under the stock repurchase program, and the stock repurchase program may be suspended or discontinued at any time without notice.

The following table sets forth information about the Company’s purchases of its common stock during the first quarter of 2024:

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet be Purchased  Under the Plans or Programs (in thousands)
January 1 - 31, 2024	—	$	—	—	$	15,000
February 1 - 29, 2024	123,191	18.91		123,191	12,670
March 1 - 31, 2024	56,090	18.97		56,090	11,606
Total	179,281	$	18.93	179,281	$	11,606

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

None.

82

ITEM 5.    OTHER INFORMATION

During the fiscal quarter ended March 31, 2024, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

ITEM 6.    EXHIBITS

Exhibit No.	Description
10.1 §	Amendment to Amended and Restated Employment Agreement, dated March 15, 2024, by and between the Company, the Bank, and Fred L. Drake.
10.2 §	Amendment to Amended and Restated Employment Agreement, dated March 15, 2024, by and between the Company, the Bank, and J. Lance Carter.
10.3 §	Amendment to Employment Agreement, dated March 15, 2024, by and between the Company, the Bank, and Peter Chapman.
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).
32.1 *	Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350.
32.2 *	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350.
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibits 101).

_________________________________________________

*This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically incorporates it by reference.

§    A management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S-K.

83

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HBT FINANCIAL, INC.
May 1, 2024	By:	/s/ Peter R. Chapman
		Peter R. Chapman
		Chief Financial Officer
		(on behalf of the registrant and as principal financial officer)

84

EX-10.1

AMENDMENTTOAMENDEDANDRESTATEDEMPLOYMENTAGREEMENT

ThisAmendmenttoAmendedandRestatedEmploymentAgreement(this“Amendment”)is made and entered into as of March 15, 2024, by and among HBT Financial, Inc., a Delaware corporation (“HBT”), Heartland Bank and Trust Company, an Illinois state-chartered bank (the “Bank,”andtogetherwithHBT,“Heartland”),andFred L. Drake (“Employee”) (HBT, the Bank and Employee, the “Parties”).

RECITALS

A.    EmployeeiscurrentlyemployedbyHeartlandasExecutive Chairman of Heartland, pursuant to that certain Amended and Restated Employment Agreement by and among Heartland and Employee dated February 22, 2021, which was amended Mary 24, 2023, (the “EmploymentAgreement”).

B.    As part of its retention strategy for its executive officer, the Parties have discussed from time-to-time Employee’s performance and plans to retain and reward employee’s service to Heartland

C.    PursuanttoSection 14oftheEmploymentAgreement,HeartlandandEmployeemay amendtheEmploymentAgreementinwritingexecutedbyallpartiesthereto.

D.    HeartlandandEmployeedesiretoamend theEmploymentAgreementasprovided herein for the purpose of setting forth provisions applicable to Employee’s employment and service as of the Effective Date.

AGREEMENTS

InconsiderationoftheforegoingandofthemutualpromisesandcovenantsofthePartiesset forthinthisAmendment,andforothergoodandvaluableconsideration,thereceiptandsufficiencyof whichareherebyacknowledged,theParties,intendingtobelegallybound,herebycovenantandagree tothefollowingrevisionstotheEmploymentAgreement:

1.Effective as of March 4, 2024, Exhibit A of the Employment Agreement shall be amended and restated in its entirety to read as set forth on Exhibit 1 to this Amendment.

2.Except as expressly amended pursuant to clause 1 above, the Employment Agreement shall continue if full force and effect.

3.Capitalized terms not defined in this Amendment shall have the meanings proscribedtosuchtermsintheEmploymentAgreement.

4.Employee acknowledges and agrees that nothing contained in this Amendment will constitute Good Reason for purposes of the Employment Agreement.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth above.

HBT FINANCIAL, INC. By:     /s/ J. Lance Carter     Name: J. Lance Carter Its: President and Chief Executive Officer	EMPLOYEE    /s/ Fred L. Drake     Name: Fred L. Drake
HEARTLAND BANK AND TRUST COMPANY By:     /s/ J. Lance Carter         Name: J. Lance Carter Its: President and Chief Executive Officer

Exhibit 1

(Modifies Exhibit A Amendment to Amended and Restate Employment Agreement

“Employee”:     Fred L. Drake

“Effective Date”: March 4, 2024

“Position”: Executive Chairman of HBT Financial, Inc. and Executive Chairman of Heartland Bank and Trust Company (expected time commitment of 75% of time commitment while serving as Chairman and Chief Executive Officer)

“Initial Expiration Date”: December 31, 2026

“Reporting Person”:    Board of Directors of HBT Financial, Inc.

“Location of Employment”:     Principal headquarters of HBT Financial, Inc.

“Base Salary”: $350,000

“Target Bonus”: 40% of Base Salary

“Annual LTI Awards Target”: 40% of Base Salary

“Annual PTO Days”: 28 days (which includes vacation, personal, and sick days)

“Outside Covered Period Severance Months”: 6

“Covered Period Severance Amount”: 2 times the sum of Base Salary and Target Bonus for the year in which Involuntary Termination occurs

“COBRA Months”: 18

“Restricted Period”: 6 months following your Involuntary Termination outside of a Covered Period or your Termination due to your Disability inside or outside of a Covered Period; 12 months following your Termination initiated by HBT and Heartland for Cause or by you without Good Reason (including non-extension of the Employment Period by you in accordance with Section 2 above), in each case either inside or outside of a Covered Period; or 24 months following your Involuntary Termination inside of a Covered Period

EX-10.2

AMENDMENTTOAMENDEDANDRESTATEDEMPLOYMENTAGREEMENT

ThisAmendmenttoAmendedandRestatedEmploymentAgreement(this“Amendment”)is made and entered into as of March 15, 2024, by and among HBT Financial, Inc., a Delaware corporation (“HBT”), Heartland Bank and Trust Company, an Illinois state-chartered bank (the “Bank,”andtogetherwithHBT,“Heartland”),andJ. Lance Carter (“Employee”)(HBT, the Bank and Employee, the “Parties”).

RECITALS

A.    EmployeeiscurrentlyemployedbyHeartlandasPresident and Chief Executive Officer of Heartland, pursuant to that certain Amended and Restated Employment Agreement by and among Heartland and Employee dated February 22, 2021, which was amended May 24, 2023, (the “EmploymentAgreement”).

B.    As part of its retention strategy for its executive officers, the Parties have discussed from time-to-time Employee’s performance and plans to retain and reward Employee’s service to Heartland.

C.    PursuanttoSection 14oftheEmploymentAgreement,HeartlandandEmployeemay amendtheEmploymentAgreementinwritingexecutedbyallpartiesthereto.

D.    HeartlandandEmployeedesiretoamend theEmploymentAgreementasprovided herein for the purpose of setting forth provisions applicable to Employee’s employment and service as of the Effective Date.

AGREEMENTS

InconsiderationoftheforegoingandofthemutualpromisesandcovenantsofthePartiesset forthinthisAmendment,andforothergoodandvaluableconsideration,thereceiptandsufficiencyof whichareherebyacknowledged,theParties,intendingtobelegallybound,herebycovenantandagree tothefollowingrevisionstotheEmploymentAgreement:

1.Effective as of March 4, 2024, Exhibit A of the Employment Agreement shall be amended and restated in its entirety to read as set forth on Exhibit 1 to this Amendment.

2.Except as expressly amended pursuant to clause 1 above, the Employment Agreement shall continue if full force and effect.

3.Capitalized terms not defined in this Amendment shall have the meanings proscribedtosuchtermsintheEmploymentAgreement.

4.Employee acknowledges and agrees that nothing contained in this Amendment will constitute Good Reason for purposes of the Employment Agreement.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth above.

HBT FINANCIAL, INC. By:     /s/ Fred L. Drake     Name: Fred L. Drake Its: Executive Chairman	EMPLOYEE    /s/ J. Lance Carter     Name: J. Lance Carter
HEARTLAND BANK AND TRUST COMPANY By:     /s/ Fred L. Drake     Name: Fred L. Drake Its: Executive Chairman

Exhibit 1

“Employee”:     J. Lance Carter

“Effective Date”: March 4, 2024

“Position”: President and Chief Executive Officer of HBT Financial, Inc. and President and Chief Executive Officer of Heartland Bank and Trust Company

“Initial Expiration Date”: December 31, 2026

“Reporting Person”:    Executive Chairman and Board of Directors of HBT Financial, Inc.

“Location of Employment”:     Principal headquarters of HBT Financial, Inc.

“Base Salary: $557,185

“Target Bonus”: 50% of Base Salary

“Annual LTI Awards Target”: 50% of Base Salary

“Annual PTO Days”: 28 days (which includes vacation, personal and sick days)

“Outside Covered Period Severance Months”: 6

“Covered Period Severance Amount”: 2 times the sum of Base Salary and Target Bonus for the year in which Involuntary Termination occurs

“COBRA Months”: 18

“Restricted Period”: 6 months following your Involuntary Termination outside of a Covered Period or your Termination due to your Disability inside or outside of a Covered Period; 12 months following your Termination initiated by HBT and Heartland for Cause or by you without Good Reason (including non-extension of the Employment Period by you in accordance with Section 2 above), in each case either inside or outside of a Covered Period; or 24 months following your Involuntary Termination inside of a Covered Period

EX-10.3

AMENDMENTTOEMPLOYMENTAGREEMENT

ThisAmendmenttoEmploymentAgreement(this“Amendment”)is made and entered into as of March 15, 2024, by and among HBT Financial, Inc., a Delaware corporation (“HBT”), Heartland Bank and Trust Company, an Illinois state-chartered bank (the “Bank,”andtogetherwithHBT,“Heartland”),andPeter Chapman (“Employee”) (HBT, the Bank and Employee, the “Parties”).

RECITALS

A.    EmployeeiscurrentlyemployedbyHeartlandasExecutive Vice President and Chief Financial Officer of Heartland, pursuant to that certain Employment Agreement by and among Heartland and Employee dated October 3, 2022, (the “EmploymentAgreement”).

B.    As part of its retention strategy for its executive officers, the Parties have discussed from time-to-time Employee’s performance and plans to retain and reward Employee’s service to Heartland.

C.    PursuanttoSection 14oftheEmploymentAgreement,HeartlandandEmployeemay amendtheEmploymentAgreementinwritingexecutedbyallpartiesthereto.

D.    HeartlandandEmployeedesiretoamend theEmploymentAgreementasprovided herein for the purpose of setting forth provisions applicable to Employee’s employment and service as of the Effective Date.

AGREEMENTS

InconsiderationoftheforegoingandofthemutualpromisesandcovenantsofthePartiesset forthinthisAmendment,andforothergoodandvaluableconsideration,thereceiptandsufficiencyof whichareherebyacknowledged,theParties,intendingtobelegallybound,herebycovenantandagree tothefollowingrevisionstotheEmploymentAgreement:

1.Effective as of March 4, 2024, Exhibit A of the Employment Agreement shall be amended and restated in its entirety to read as set forth on Exhibit 1 to this Amendment.

2.Except as expressly amended pursuant to clause 1 above, the Employment Agreement shall continue in full force and effect.

3.Capitalized terms not defined in this Amendment shall have the meanings proscribedtosuchtermsintheEmploymentAgreement.

4.Employee acknowledges and agrees that nothing contained in this Amendment will constitute Good Reason for purposes of the Employment Agreement.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth above.

HBT FINANCIAL, INC. By:     /s/ J. Lance Carter     Name: J. Lance Carter Its: President and Chief Executive Officer	EMPLOYEE    /s/ Peter Chapman     Name: Peter Chapman
HEARTLAND BANK AND TRUST COMPANY By:     /s/ J. Lance Carter     Name: J. Lance Carter Its: President and Chief Executive Officer

Exhibit 1

(Modifies Exhibit A to Employment Agreement)

“Employee”: Peter Chapman

“Effective Date”: March 4, 2024

“Position”: Executive Vice President and Chief Financial Officerof HBT Financial, Inc.

and Heartland Bank and Trust Company

“Initial Expiration Date”: December 31, 2026

“Reporting Person”: President and Chief Executive Officer of HBT Financial, Inc. and Heartland Bank and Trust Company

“Location of Employment”: Principal headquarters of HBT Financial, Inc.

“Base Salary”: $336,000

“Target Bonus”: 40% of Base Salary

“Annual LTI Awards Target”: 40% of Base Salary

“Annual PTO Days”: 28 days (which includes vacation, personal, and sick days)

“Outside Covered Period Severance Months”: 6

“Covered Period Severance Amount”: 2 times the sum of your Base Salary and Target

Bonus for the year in which Involuntary Termination occurs

“COBRA Months”: 18

“Restricted Period”: 6 months following your Involuntary Termination outside of a

Covered Period or your Termination due to your Disability inside or outside of a Covered

Period; 12 months following your Termination initiated by HBT and Heartland for Cause

or by you without Good Reason (including non-extension of the Employment Period by

you in accordance with Section 2 above), in each case either inside or outside of a Covered

Period; or 24 months following your Involuntary Termination inside of a Covered Period

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, J. Lance Carter, certify that:

1.I have reviewed this quarterly report on Form 10-Q of HBT Financial, Inc.:

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 1, 2024	/s/ J. Lance Carter
	J. Lance Carter
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Peter R. Chapman, certify that:

1.I have reviewed this quarterly report on Form 10-Q of HBT Financial, Inc.:

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 1, 2024	/s/ Peter R. Chapman
	Peter R. Chapman
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of HBT Financial, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ J. Lance Carter

J. Lance Carter

President and Chief Executive Officer

(Principal Executive Officer)

May 1, 2024

EX-32.2

EXHIBIT 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of HBT Financial, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Peter R. Chapman

Peter R. Chapman

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

May 1, 2024

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 24, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39085
Entity Registrant Name	HBT Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1117216
Entity Address, Address Line One	401 North Hershey Rd
Entity Address, City or Town	Bloomington
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61704
City Area Code	309
Local Phone Number	662-4444
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HBT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,591,466
Amendment Flag	false
Entity Central Index Key	0000775215
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 19,989	$ 26,256
Interest-bearing deposits with banks	240,223	114,996
Cash and cash equivalents	260,212	141,252
Interest-bearing time deposits with banks	515	509
Debt securities available-for-sale, at fair value	669,020	759,461
Debt securities held-to-maturity (fair value of $458,640 at 2024 and $466,496 at 2023)	517,472	521,439
Equity securities with readily determinable fair value	3,324	3,360
Equity securities with no readily determinable fair value	2,622	2,505
Restricted stock, at cost	5,155	7,160
Loans held for sale	3,479	2,318
Loans, before allowance for credit losses	3,345,962	3,404,417
Allowance for credit losses	(40,815)	(40,048)
Loans, net of allowance for credit losses	3,305,147	3,364,369
Bank owned life insurance	24,069	23,905
Bank premises and equipment, net	64,755	65,150
Bank premises held for sale	317	0
Foreclosed assets	277	852
Goodwill	59,820	59,820
Intangible assets, net	19,972	20,682
Mortgage servicing rights, at fair value	19,081	19,001
Investments in unconsolidated subsidiaries	1,614	1,614
Accrued interest receivable	23,117	24,534
Other assets	60,542	55,239
Total assets	5,040,510	5,073,170
Deposits:
Noninterest-bearing	1,047,074	1,072,407
Interest-bearing	3,313,500	3,329,030
Total deposits	4,360,574	4,401,437
Securities sold under agreements to repurchase	31,864	42,442
FHLB advances	12,725	12,623
Subordinated notes	39,494	39,474
Junior subordinated debentures issued to capital trusts	52,804	52,789
Other liabilities	46,368	34,909
Total liabilities	4,543,829	4,583,674
COMMITMENTS AND CONTINGENCIES (Note 14)
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 32,827,039 at 2024 and 32,730,698 at 2023; shares outstanding of 31,612,888 at 2024 and 31,695,828 at 2023	328	327
Surplus	296,054	295,877
Retained earnings	278,353	269,051
Accumulated other comprehensive income (loss)	(56,048)	(57,163)
Treasury stock at cost, 1,214,151 shares at 2024 and 1,034,870 at 2023	(22,006)	(18,596)
Total stockholders’ equity	496,681	489,496
Total liabilities and stockholders’ equity	$ 5,040,510	$ 5,073,170

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Stockholders' Equity
Debt securities held-to-maturity	$ 458,640	$ 466,496
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	125,000,000	125,000,000
Common stock, issued (in shares)	32,827,039	32,730,698
Common stock, outstanding (in shares)	31,612,888	31,695,828
Treasury stock, (in shares)	1,214,151	1,034,870

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Loans, including fees:
Taxable	$ 51,926	$ 42,159
Federally tax exempt	1,094	952
Securities:
Taxable	6,250	6,616
Federally tax exempt	597	1,197
Interest-bearing deposits in bank	1,952	739
Other interest and dividend income	142	116
Total interest and dividend income	61,961	51,779
INTEREST EXPENSE
Deposits	13,593	2,374
Securities sold under agreements to repurchase	152	38
Borrowings	125	1,297
Subordinated notes	470	470
Junior subordinated debentures issued to capital trusts	933	763
Total interest expense	15,273	4,942
Net interest income	46,688	46,837
PROVISION FOR CREDIT LOSSES	527	6,210
Net interest income after provision for credit losses	46,161	40,627
NONINTEREST INCOME
Mortgage servicing	1,055	1,099
Mortgage servicing rights fair value adjustment	80	(624)
Gains on sale of mortgage loans	298	276
Realized gains (losses) on sales of securities	(3,382)	(1,007)
Unrealized gains (losses) on equity securities	(16)	(22)
Gains (losses) on foreclosed assets	87	(10)
Gains (losses) on other assets	(635)	0
Income on bank owned life insurance	164	115
Other noninterest income	943	743
Total noninterest income	5,626	7,437
NONINTEREST EXPENSE
Salaries	16,657	19,411
Employee benefits	2,805	2,335
Occupancy of bank premises	2,582	2,102
Furniture and equipment	550	659
Data processing	2,925	4,323
Marketing and customer relations	996	836
Amortization of intangible assets	710	510
FDIC insurance	560	563
Loan collection and servicing	452	278
Foreclosed assets	49	61
Other noninterest expense	2,982	4,855
Total noninterest expense	31,268	35,933
INCOME BEFORE INCOME TAX EXPENSE	20,519	12,131
INCOME TAX EXPENSE	5,261	2,923
NET INCOME	$ 15,258	$ 9,208
Earnings per share, basic (in dollars per share)	$ 0.48	$ 0.30
Earnings per share, diluted (in dollars per share)	$ 0.48	$ 0.30
Weighted average shares of common stock outstanding (in shares)	31,662,954	30,977,204
Card income
NONINTEREST INCOME
Revenue	$ 2,616	$ 2,658
Wealth management fees
NONINTEREST INCOME
Revenue	2,547	2,338
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	$ 1,869	$ 1,871

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 15,258	$ 9,208
OTHER COMPREHENSIVE INCOME
Unrealized gains (losses) on debt securities available-for-sale	(2,255)	11,443
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income	3,382	1,607
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	501	490
Unrealized gains (losses) on derivative instruments	64	(40)
Reclassification adjustment for net settlements on derivative instruments	(132)	(94)
Other comprehensive income (loss), before tax	1,560	13,406
Income tax expense (benefit)	445	3,822
Total other comprehensive income	1,115	9,584
TOTAL COMPREHENSIVE INCOME	$ 16,373	$ 18,792

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Surplus	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022			28,752,626
Beginning balance at Dec. 31, 2022	$ 373,632	$ (6,922)	$ 293	$ 222,783	$ 232,004	$ (6,922)	$ (71,759)	$ (9,689)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,208				9,208
Other comprehensive income	9,584						9,584
Stock-based compensation	517			517
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares)			43,607
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	(181)			(181)
Issuance of common stock in town and country acquisition (in shares)			3,378,600
Issuance of common stock in Town and Country acquisition	71,356		$ 34	71,322
Repurchase of common stock (in shares)			(79,463)
Repurchase of common stock	(1,588)							(1,588)
Cash dividends and dividend equivalents	(5,508)				(5,508)
Ending balance (in shares) at Mar. 31, 2023			32,095,370
Ending balance at Mar. 31, 2023	450,098		$ 327	294,441	228,782		(62,175)	(11,277)
Beginning balance (in shares) at Dec. 31, 2022			28,752,626
Beginning balance at Dec. 31, 2022	$ 373,632	(6,922)	$ 293	222,783	232,004	(6,922)	(71,759)	(9,689)
Ending balance (in shares) at Dec. 31, 2023	31,695,828		31,695,828
Ending balance at Dec. 31, 2023	$ 489,496	$ 116	$ 327	295,877	269,051	$ 116	(57,163)	(18,596)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2023-02
Net income	$ 15,258				15,258
Other comprehensive income	1,115						1,115
Stock-based compensation	509			509
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares)			96,341
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	(331)		$ 1	(332)
Repurchase of common stock (in shares)			(179,281)
Repurchase of common stock	(3,410)							(3,410)
Cash dividends and dividend equivalents	$ (6,072)				(6,072)
Ending balance (in shares) at Mar. 31, 2024	31,612,888		31,612,888
Ending balance at Mar. 31, 2024	$ 496,681		$ 328	$ 296,054	$ 278,353		$ (56,048)	$ (22,006)

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.19	$ 0.17

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 15,258	$ 9,208
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	729	793
Provision for credit losses	527	6,210
Net amortization of debt securities	1,036	1,518
Deferred income tax expense (benefit)	1,154	(1,079)
Stock-based compensation	509	517
Net accretion of discount and deferred loan fees on loans	(1,854)	(1,635)
Net realized loss on sales of securities	3,382	1,007
Net unrealized loss on equity securities	16	22
Net loss on disposals of bank premises and equipment	55	0
Impairment losses on bank premises held for sale	580	0
Net gain on sales of foreclosed assets	(113)	(20)
Write-down of foreclosed assets	26	30
Amortization of intangibles	710	510
Decrease (increase) in mortgage servicing rights	(80)	624
Amortization of discount and issuance costs on subordinated notes and debentures	35	37
Amortization of discount on Federal Home Loan Bank advances	102	69
Amortization of premium on time deposits	(30)	(110)
Mortgage loans originated for sale	(12,459)	(15,734)
Proceeds from sale of mortgage loans	11,596	13,107
Net gain on sale of mortgage loans	(298)	(276)
Increase in cash surrender value of bank owned life insurance	(164)	(108)
Decrease in accrued interest receivable	1,417	2,318
Decrease (increase) in other assets	(5,574)	7,846
Increase (decrease) in other liabilities	10,212	(3,364)
Net cash provided by operating activities	26,772	21,490
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of interest-bearing time deposits with banks	(6)	0
Proceeds from sales of securities	66,832	145,844
Proceeds from paydowns, maturities, and calls of debt securities	29,563	26,513
Purchase of securities	(4,874)	(51)
Purchase of loans	(4,448)	0
Net decrease in loans	64,761	61,964
Purchase of restricted stock	0	(3,545)
Proceeds from redemption of restricted stock	2,005	9,341
Purchases of bank premises and equipment	(1,286)	(622)
Proceeds from sales of bank premises and equipment	0	7
Proceeds from sales of foreclosed assets	865	40
Net cash paid for acquisition of Town and Country	0	(14,454)
Net cash provided by investing activities	153,412	225,037
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	(40,833)	3,190
Net decrease in repurchase agreements	(10,578)	(8,162)
Net decrease in Federal Home Loan Bank advances	0	(171,325)
Taxes paid related to the vesting of restricted stock units	(331)	(181)
Repurchase of common stock	(3,410)	(1,588)
Cash dividends and dividend equivalents paid	(6,072)	(5,508)
Net cash used in financing activities	(61,224)	(183,574)
NET INCREASE IN CASH AND CASH EQUIVALENTS	118,960	62,953
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	141,252	114,159
CASH AND CASH EQUIVALENTS AT END OF PERIOD	260,212	177,112
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	15,926	4,903
Net refunds received for income taxes	(749)	0
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	203	105
Transfers of bank premises and equipment to bank premises held for sale	$ 317	$ 0

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ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

ACCOUNTING POLICIES

ACCOUNTING POLICIES

Basis of Presentation

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 6, 2024.

The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses.

Low Income Housing Tax Credits

The Company holds an ownership interest in a limited liability company, as a limited partner, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method.

The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $7.5 million as of March 31, 2024.

Segment Reporting

The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Impact of Recently Adopted Accounting Standards

On January 1, 2024, the Company adopted ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323). ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $7.2 million increase to other assets and other liabilities, as a result of the adoption.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method. ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

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ACQUISITIONS

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

Town and Country Financial Corporation

On February 1, 2023, HBT Financial acquired 100% of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity.

At the effective time of the merger, each share of Town and Country was converted into the right to receive, subject to the election and proration procedures as provided in the Merger Agreement, one of the following: (i) 1.9010 shares of HBT Financial’s common stock, or (ii) $35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate transaction value was approximately $109.4 million.

This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Measurement period adjustments of $0.1 million were recorded in the third quarter of 2023 as more information became available regarding Town and Country's tax assets and liabilities. Goodwill of $30.5 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes.

The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois, and expanded our footprint into metro-east St. Louis. No expenses were incurred related to the acquisition of Town and Country for the three months ended March 31, 2024. During the three months ended March 31, 2023, HBT Financial incurred the following expenses related to the acquisition of Town and Country:

(dollars in thousands)	Three Months Ended March 31, 2023
PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries	3,518
Data processing	1,855
Marketing and customer relations	14
Legal fees and other noninterest expense	1,753
Total noninterest expense	7,140
Total Town and Country acquisition-related expenses	$	13,064

The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands):

	Fair Value
Assets acquired:
Cash and cash equivalents	$	23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	301
Restricted stock	2,822
Loans held for sale	1,612
Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129
Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	8,940
Total assets acquired	906,658
Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	$	78,854
Consideration paid:
Cash	$	37,996
Common stock	71,356
Total consideration paid	$	109,352
Goodwill	$	30,498

Of the loans acquired, there were $89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands):

Unpaid principal balance	$	89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$	86,357

Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through an increase to the provision for credit losses.

The following table provides the pro forma information for the results of operations for the three months ended March 31, 2023 as if the acquisition of Town and Country had occurred on January 1, 2022. The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table.

	Pro Forma
(dollars in thousands, except per share data)	Three Months Ended March 31, 2023
Total revenues (net interest income and noninterest income)	$	57,770
Net income	10,015
Earnings per share - basic	0.31
Earnings per share - diluted	0.31

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SECURITIES

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

SECURITIES

SECURITIES

Debt Securities

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:

	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	149,697	$	—	$	(11,511)	$	—	$	138,186
U.S. government agency	53,836		—		(3,377)		—		50,459
Municipal	156,403		1		(21,756)		—		134,648
Mortgage-backed:
Agency residential	183,553		51		(15,058)		—		168,546
Agency commercial	138,873		2		(14,400)		—		124,475
Corporate	57,694		—		(4,988)		—		52,706
Total available-for-sale	$	740,056	$	54	$	(71,090)	$	—	$	669,020
	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,454	$	—	$	(8,977)	$	79,477	$	—
Municipal	38,459		158		(351)		38,266		—
Mortgage-backed:
Agency residential	93,737		—		(6,497)		87,240		—
Agency commercial	296,822		—		(43,165)		253,657		—
Total held-to-maturity	$	517,472	$	158	$	(58,990)	$	458,640	$	—

	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461
	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

As of March 31, 2024 and December 31, 2023, the Bank had debt securities with a carrying value of $388.8 million and $419.4 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of March 31, 2024, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in 1 year or less	$	46,701	$	45,715	$	2,791	$	2,789
Due after 1 year through 5 years	193,559		179,686		44,748		42,300
Due after 5 years through 10 years	155,271		132,382		73,706		67,434
Due after 10 years	22,099		18,216		5,668		5,220
Mortgage-backed:
Agency residential	183,553		168,546		93,737		87,240
Agency commercial	138,873		124,475		296,822		253,657
Total	$	740,056	$	669,020	$	517,472	$	458,640

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of March 31, 2024 and December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:

	March 31, 2024
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,511)	$	138,186	$	(11,511)	$	138,186
U.S. government agency	—		—		(3,377)		50,432		(3,377)		50,432
Municipal	(10)		2,648		(21,746)		131,224		(21,756)		133,872
Mortgage-backed:
Agency residential	(32)		7,947		(15,026)		155,172		(15,058)		163,119
Agency commercial	(10)		913		(14,390)		123,480		(14,400)		124,393
Corporate	(7)		1,987		(4,981)		50,706		(4,988)		52,693
Total available-for-sale	$	(59)	$	13,495	$	(71,031)	$	649,200	$	(71,090)	$	662,695

	December 31, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

As of March 31, 2024, there were 690 debt securities in an unrealized loss position for a period of twelve months or more, and 73 debt securities in an unrealized loss position for a period of less than twelve months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

Municipal securities include approximately 73% general obligation bonds as of March 31, 2024, which have a very low historical default rate due to issuers generally having taxing authority to service the debt. The remainder of the municipal securities are also of high credit quality with ratings of A1/A+ or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. During 2024, the changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. During the three months ended March 31, 2023, a $0.6 million allowance for credit losses was established for one bank subordinated debt security, reflecting heightened potential credit risk following the failures of other banks in early 2023. This allowance for credit losses was later reversed during the third quarter of 2023 after a merger announcement by the issuer of the bank subordinated debt security.

As of March 31, 2024, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.

Accrued interest on debt securities is excluded from the estimate of credit losses and totaled $5.4 million and $6.0 million as of March 31, 2024 and December 31, 2023, respectively.

Sales of debt securities were as follows during the three months ended March 31:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds from sales	$	66,812	$	145,844
Gross realized gains	—		—
Gross realized losses	(3,382)		(1,007)

Equity Securities

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows:

	March 31, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,124	$	2,957
Cumulative net unrealized gains (losses)	200		(335)
Carrying value	$	3,324	$	2,622

	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

As of March 31, 2024 and December 31, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

During the three months ended March 31, 2024, the Company sold equity securities with a readily determinable fair value totaling $20 thousand at their carrying value. There were no sales of equity securities during the three months ended March 31, 2023.

Unrealized gains (losses) on equity securities were as follows during the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Readily determinable fair value	$	(16)	$	116
No readily determinable fair value	—		(138)
Unrealized gains (losses) on equity securities	$	(16)	$	(22)

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Major categories of loans are summarized as follows:

(dollars in thousands)	March 31, 2024		December 31, 2023
Commercial and industrial	$	402,206	$	427,800
Commercial real estate - owner occupied	294,967		295,842
Commercial real estate - non-owner occupied	890,251		880,681
Construction and land development	345,991		363,983
Multi-family	421,573		417,923
One-to-four family residential	485,948		491,508
Agricultural and farmland	287,205		287,294
Municipal, consumer, and other	217,821		239,386
Loans, before allowance for credit losses	3,345,962		3,404,417
Allowance for credit losses	(40,815)		(40,048)
Loans, net of allowance for credit losses	$	3,305,147	$	3,364,369

Allowance for Credit Losses

Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At March 31, 2024, the economic forecast used by management anticipates an economic slowdown, but not a recession, with the unemployment rate remaining stable and GDP growth slowing and then remaining stable over the next 4 quarters considered in the forecast period. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.

The following tables detail activity in the allowance for credit losses:

	Three Months Ended March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048
Provision for credit losses	239		(117)		2,102		(454)		8		(421)		32		(829)		560
Charge-offs	(15)		—		—		—		—		(21)		—		(191)		(227)
Recoveries	26		2		242		1		—		84		7		72		434
Ending balance	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	Three Months Ended March 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for loan losses	387		619		305		1,139		526		1,081		305		739		5,101
Charge-offs	—		(3)		—		—		—		(22)		—		(117)		(142)
Recoveries	19		12		74		3		—		58		1		87		254
Ending balance	$	2,932	$	2,535	$	7,840	$	7,574	$	2,151	$	4,165	$	2,674	$	8,905	$	38,776

Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2024 and 2023.

	Gross Charge-Offs for the Three Months Ended March 31, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior
Commercial and industrial	$	—	$	3	$	—	$	—	$	—	$	11	$	1	$	—	$	15
Commercial real estate - owner occupied	—		—		—		—		—		—		—		—		—
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		3		—		—		6		12		—		21
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	44		56		6		—		—		—		85		—		191
Total	$	44	$	59	$	9	$	—	$	—	$	17	$	98	$	—	$	227
	Gross Charge-Offs for the Three Months Ended March 31, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - owner occupied	—		3		—		—		—		—		—		—		3
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		21		—		—		22
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	35		53		—		9		—		—		20		—		117
Total	$	35	$	56	$	—	$	9	$	1	$	21	$	20	$	—	$	142

The following tables present loans and the related allowance for credit losses by category:

	March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	401,036	$	294,322	$	875,344	$	345,775	$	421,257	$	479,840	$	287,061	$	202,934	$	3,307,569
Individually evaluated for impairment	1,170		645		14,907		216		316		6,108		144		14,887		38,393
Total	$	402,206	$	294,967	$	890,251	$	345,991	$	421,573	$	485,948	$	287,205	$	217,821	$	3,345,962
Allowance for credit losses:
Collectively evaluated for impairment	$	4,882	$	2,157	$	9,224	$	5,545	$	3,845	$	4,603	$	1,014	$	5,414	$	36,684
Individually evaluated for impairment	348		—		834		—		—		243		—		2,706		4,131
Total	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	December 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417
Allowance for loan losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

	March 31, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	895	$	275	$	1,170	$	348
Commercial real estate - owner occupied	645		—		—		645		—
Commercial real estate - non-owner occupied	14,907		—		—		14,907		834
Construction and land development	216		—		—		216		—
Multi-family	316		—		—		316		—
One-to-four family residential	6,108		—		—		6,108		243
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,817		48		22		14,887		2,706
Total	$	37,153	$	943	$	297	$	38,393	$	4,131
	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

Accrued interest on loans is excluded from the estimate of credit losses and totaled $17.3 million and $18.4 million as of March 31, 2024 and December 31, 2023, respectively.

Past Due and Nonaccrual Status

Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

The following tables present loans by category based on current payment and accrual status:

	March 31, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	400,152	$	884	$	—	$	1,170	$	402,206
Commercial real estate - owner occupied	294,148		174		—		645		294,967
Commercial real estate - non-owner occupied	885,963		2,645		—		1,643		890,251
Construction and land development	345,775		—		—		216		345,991
Multi-family	421,142		115		—		316		421,573
One-to-four family residential	478,351		2,143		—		5,454		485,948
Agricultural and farmland	286,977		84		—		144		287,205
Municipal, consumer, and other	217,629		123		—		69		217,821
Total	$	3,330,137	$	6,168	$	—	$	9,657	$	3,345,962

	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

The following tables present nonaccrual loans with and without a related allowance for credit losses:

	March 31, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	1,057	$	113	$	1,170
Commercial real estate - owner occupied	—		645		645
Commercial real estate - non-owner occupied	—		1,643		1,643
Construction and land development	216		—		216
Multi-family	—		316		316
One-to-four family residential	145		5,309		5,454
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		69		69
Total	$	1,418	$	8,239	$	9,657
	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

Credit Quality Indicators

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $750,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows:

Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a Substandard or Doubtful classification.

Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables present loans by category based on their assigned risk ratings determined by management:

	March 31, 2024
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	388,483	$	8,882	$	4,841	$	—	$	402,206
Commercial real estate - owner occupied	275,346		12,611		7,010		—		294,967
Commercial real estate - non-owner occupied	825,513		40,095		24,643		—		890,251
Construction and land development	333,565		12,154		272		—		345,991
Multi-family	401,541		19,716		316		—		421,573
One-to-four family residential	466,266		7,000		12,682		—		485,948
Agricultural and farmland	276,427		7,092		3,686		—		287,205
Municipal, consumer, and other	201,083		1,732		15,006		—		217,821
Total	$	3,168,224	$	109,282	$	68,456	$	—	$	3,345,962

	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	419,494	$	7,128	$	1,178	$	—	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		—		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		—		880,681
Construction and land development	351,087		12,604		292		—		363,983
Multi-family	397,951		19,656		316		—		417,923
One-to-four family residential	472,355		6,671		12,482		—		491,508
Agricultural and farmland	280,867		3,071		3,356		—		287,294
Municipal, consumer, and other	222,474		1,721		15,191		—		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	—	$	3,404,417

Risk ratings of loans, further sorted by origination year, are as follows as of March 31, 2024:

(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	17,320	$	73,281	$	55,707	$	17,771	$	24,591	$	33,691	$	162,876	$	3,246	$	388,483
Pass-Watch	—		3,490		1,374		955		124		1,161		766		1,012		8,882
Substandard	—		1,311		65		27		42		—		2,942		454		4,841
Total	$	17,320	$	78,082	$	57,146	$	18,753	$	24,757	$	34,852	$	166,584	$	4,712	$	402,206
Commercial real estate - owner occupied
Pass	$	7,568	$	27,742	$	63,093	$	54,117	$	52,110	$	57,399	$	13,250	$	67	$	275,346
Pass-Watch	352		3,199		919		5,070		1,414		1,657		—		—		12,611
Substandard	—		3,141		84		1,180		61		1,061		1,483		—		7,010
Total	$	7,920	$	34,082	$	64,096	$	60,367	$	53,585	$	60,117	$	14,733	$	67	$	294,967
Commercial real estate - non-owner occupied
Pass	$	11,210	$	124,093	$	246,855	$	234,215	$	87,338	$	110,263	$	9,840	$	1,699	$	825,513
Pass-Watch	—		790		6,824		6,925		348		11,383		13,586		239		40,095
Substandard	—		13,274		124		—		—		11,245		—		—		24,643
Total	$	11,210	$	138,157	$	253,803	$	241,140	$	87,686	$	132,891	$	23,426	$	1,938	$	890,251
Construction and land development
Pass	$	25,805	$	133,857	$	107,186	$	42,022	$	9,070	$	3,170	$	12,194	$	261	$	333,565
Pass-Watch	152		1,919		8,423		—		—		19		804		837		12,154
Substandard	—		—		216		—		—		56		—		—		272
Total	$	25,957	$	135,776	$	115,825	$	42,022	$	9,070	$	3,245	$	12,998	$	1,098	$	345,991
Multi-family
Pass	$	5,042	$	83,616	$	81,575	$	117,281	$	52,554	$	56,099	$	4,893	$	481	$	401,541
Pass-Watch	400		2,703		7,161		—		8,816		629		—		7		19,716
Substandard	—		—		—		316		—		—		—		—		316
Total	$	5,442	$	86,319	$	88,736	$	117,597	$	61,370	$	56,728	$	4,893	$	488	$	421,573
One-to-four family residential
Pass	$	14,674	$	98,623	$	90,394	$	78,700	$	62,792	$	61,198	$	53,859	$	6,026	$	466,266
Pass-Watch	365		2,039		283		931		605		2,296		202		279		7,000
Substandard	70		1,527		1,523		547		564		5,517		—		2,934		12,682
Total	$	15,109	$	102,189	$	92,200	$	80,178	$	63,961	$	69,011	$	54,061	$	9,239	$	485,948
Agricultural and farmland
Pass	$	17,509	$	43,295	$	35,500	$	34,208	$	31,935	$	12,397	$	100,006	$	1,577	$	276,427
Pass-Watch	137		2,878		794		94		27		761		2,355		46		7,092
Substandard	331		—		—		12		3,199		144		—		—		3,686
Total	$	17,977	$	46,173	$	36,294	$	34,314	$	35,161	$	13,302	$	102,361	$	1,623	$	287,205
Municipal, Consumer, and other
Pass	$	8,181	$	38,222	$	49,651	$	27,623	$	13,490	$	42,611	$	21,305	$	—	$	201,083
Pass-Watch	—		10		31		11		—		1,676		4		—		1,732
Substandard	31		64		62		—		—		14,825		24		—		15,006
Total	$	8,212	$	38,296	$	49,744	$	27,634	$	13,490	$	59,112	$	21,333	$	—	$	217,821
Total by Risk Rating
Pass	$	107,309	$	622,729	$	729,961	$	605,937	$	333,880	$	376,828	$	378,223	$	13,357	$	3,168,224
Pass-Watch	1,406		17,028		25,809		13,986		11,334		19,582		17,717		2,420		109,282
Substandard	432		19,317		2,074		2,082		3,866		32,848		4,449		3,388		68,456
Total	$	109,147	$	659,074	$	757,844	$	622,005	$	349,080	$	429,258	$	400,389	$	19,165	$	3,345,962

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2023:

(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2023		2022		2021		2020		2019		Prior
Commercial and industrial
Pass	$	90,931	$	58,364	$	19,283	$	26,816	$	5,269	$	29,550	$	187,579	$	1,702	$	419,494
Pass-Watch	2,025		1,340		892		144		753		471		956		547		7,128
Substandard	111		73		327		60		—		—		323		284		1,178
Total	$	93,067	$	59,777	$	20,502	$	27,020	$	6,022	$	30,021	$	188,858	$	2,533	$	427,800
Commercial real estate - owner occupied
Pass	$	27,516	$	64,229	$	55,376	$	53,634	$	32,469	$	28,876	$	13,549	$	—	$	275,649
Pass-Watch	4,061		943		5,210		1,474		1,573		811		—		—		14,072
Substandard	2,734		86		1,550		64		164		1,523		—		—		6,121
Total	$	34,311	$	65,258	$	62,136	$	55,172	$	34,206	$	31,210	$	13,549	$	—	$	295,842
Commercial real estate - non-owner occupied
Pass	$	121,536	$	240,323	$	237,953	$	88,894	$	82,094	$	39,228	$	10,274	$	1,710	$	822,012
Pass-Watch	810		6,893		7,013		353		4,230		154		13,585		245		33,283
Substandard	13,376		124		286		—		2,410		9,190		—		—		25,386
Total	$	135,722	$	247,340	$	245,252	$	89,247	$	88,734	$	48,572	$	23,859	$	1,955	$	880,681
Construction and land development
Pass	$	153,499	$	119,005	$	56,954	$	5,596	$	2,662	$	796	$	12,050	$	525	$	351,087
Pass-Watch	153		10,750		—		—		—		—		163		1,538		12,604
Substandard	—		216		—		—		—		76		—		—		292
Total	$	153,652	$	129,971	$	56,954	$	5,596	$	2,662	$	872	$	12,213	$	2,063	$	363,983
Multi-family
Pass	$	83,898	$	81,507	$	115,402	$	53,126	$	34,053	$	23,570	$	5,904	$	491	$	397,951
Pass-Watch	3,111		7,197		—		8,821		51		468		—		8		19,656
Substandard	—		—		316		—		—		—		—		—		316
Total	$	87,009	$	88,704	$	115,718	$	61,947	$	34,104	$	24,038	$	5,904	$	499	$	417,923
One-to-four family residential
Pass	$	105,337	$	91,636	$	82,289	$	64,094	$	21,986	$	44,241	$	57,248	$	5,524	$	472,355
Pass-Watch	2,382		286		940		486		212		1,804		203		358		6,671
Substandard	1,507		1,527		623		646		1,037		4,166		64		2,912		12,482
Total	$	109,226	$	93,449	$	83,852	$	65,226	$	23,235	$	50,211	$	57,515	$	8,794	$	491,508
Agricultural and farmland
Pass	$	52,766	$	37,600	$	36,604	$	33,960	$	8,910	$	7,756	$	100,486	$	2,785	$	280,867
Pass-Watch	953		361		425		30		71		719		172		340		3,071
Substandard	—		—		13		3,199		—		144		—		—		3,356
Total	$	53,719	$	37,961	$	37,042	$	37,189	$	8,981	$	8,619	$	100,658	$	3,125	$	287,294
Municipal, Consumer, and other
Pass	$	43,575	$	57,404	$	27,904	$	14,342	$	1,016	$	42,499	$	35,734	$	—	$	222,474
Pass-Watch	9		6		13		—		—		1,693		—		—		1,721
Substandard	51		103		2		6		8		15,012		8		1		15,191
Total	$	43,635	$	57,513	$	27,919	$	14,348	$	1,024	$	59,204	$	35,742	$	1	$	239,386
Total by Risk Rating
Pass	$	679,058	$	750,068	$	631,765	$	340,462	$	188,459	$	216,516	$	422,824	$	12,737	$	3,241,889
Pass-Watch	$	13,504	$	27,776	$	14,493	$	11,308	$	6,890	$	6,120	$	15,079	$	3,036	98,206
Substandard	$	17,779	$	2,129	$	3,117	$	3,975	$	3,619	$	30,111	$	395	$	3,197	64,322
Total	$	710,341	$	779,973	$	649,375	$	355,745	$	198,968	$	252,747	$	438,298	$	18,970	$	3,404,417

Modifications

There were no loan modifications to borrowers in financial distress during the three months ended March 31, 2024 and 2023. There were no modified loans to borrowers in financial distress outstanding as of March 31, 2024 and December 31, 2023.

Pledged Loans

As of March 31, 2024 and December 31, 2023, the Company pledged loans totaling $1.85 billion and $1.20 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.

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LOAN SERVICING

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

LOAN SERVICING

LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.64 billion and $1.66 billion as of March 31, 2024 and December 31, 2023, respectively. Activity in mortgage servicing rights is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	19,001	$	10,147
Acquired	—		10,469
Capitalized servicing rights	130		129
Fair value adjustments attributable to payments and principal reductions	(429)		(431)
Fair value adjustments attributable to changes in valuation inputs and assumptions	379		(322)
Ending balance	$	19,081	$	19,992

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FORECLOSED ASSETS

3 Months Ended

Mar. 31, 2024

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

FORCLOSED ASSETS

FORECLOSED ASSETS

Foreclosed assets activity is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	852	$	3,030
Acquired	—		271
Transfers from loans	203		105
Proceeds from sales	(865)		(40)
Net gain on sales	113		20
Direct write-downs	(26)		(30)
Ending balance	$	277	$	3,356

Gains (losses) on foreclosed assets includes the following:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Direct write-downs	$	(26)	$	(30)
Net gain on sales	113		20
Gains (losses) on foreclosed assets	$	87	$	(10)

The carrying value of foreclosed one-to-four family residential real estate properties held was $0.1 million and $0.1 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, there were 20 one-to-four family residential real estate loans in the process of foreclosure totaling $2.0 million. As of December 31, 2023, there were 16 one-to-four family residential real estate loans in the process of foreclosure totaling $1.2 million.

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DEPOSITS

3 Months Ended

Mar. 31, 2024

Deposits [Abstract]

DEPOSITS

DEPOSITS

The Company’s deposits are summarized below:

(dollars in thousands)	March 31, 2024		December 31, 2023
Noninterest-bearing deposits	$	1,047,074	$	1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,139,172		1,145,092
Money market	802,685		803,381
Savings	602,739		608,424
Time	713,142		627,253
Brokered	55,762		144,880
Total interest-bearing deposits	3,313,500		3,329,030
Total deposits	$	4,360,574	$	4,401,437

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $244.1 million and $236.8 million as of March 31, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $171.4 million and $130.2 million as of March 31, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $406.4 million and $342.8 million as of March 31, 2024 and December 31, 2023, respectively.

The components of interest expense on deposits are as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Interest-bearing demand	$	1,311	$	458
Money market	4,797		935
Savings	443		178
Time	5,925		803
Brokered	1,117		—
Total interest expense on deposits	$	13,593	$	2,374

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DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.

Interest Rate Swaps Designated as Cash Flow Hedges

The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreements designated as cash flow hedges are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets	$	17,000	$	254	$	17,000	$	322

As of March 31, 2024, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of March 31, 2024 and December 31, 2023, counterparties had cash pledged and held on deposit by the Company of $0.4 million and $0.6 million, respectively.

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:

Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	132	$	94

Interest Rate Swaps Not Designated as Hedging Instruments

The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The interest rate swap agreements not designated as hedging instruments are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	93,199		7,507		94,497		6,227
Total fair value recorded in other assets	$	93,199	$	7,507	$	94,497	$	6,227
Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	93,199	$	(7,507)	$	94,497	$	(6,227)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	93,199	$	(7,507)	$	94,497	$	(6,227)

As of March 31, 2024, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035.

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Not designated as hedging instruments:
Gross gains	$	2,038	$	2,737
Gross losses	(2,038)		(2,737)
Net gains (losses)	$	—	$	—

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2024

AOCI Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):

	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total
Three Months Ended March 31, 2024
Balance, December 31, 2023	$	(48,579)	$	(8,549)	$	(35)	$	(57,163)
Other comprehensive income (loss) before reclassifications	(2,255)		—		64		(2,191)
Reclassifications	3,382		501		(132)		3,751
Other comprehensive income (loss), before tax	1,127		501		(68)		1,560
Income tax expense (benefit)	322		143		(20)		445
Other comprehensive income (loss), after tax	805		358		(48)		1,115
Balance, March 31, 2024	$	(47,774)	$	(8,191)	$	(83)	$	(56,048)
Three Months Ended March 31, 2023
Balance, December 31, 2022	$	(61,998)	$	(9,946)	$	185	$	(71,759)
Other comprehensive income (loss) before reclassifications	11,443		—		(40)		11,403
Reclassifications	1,607		490		(94)		2,003
Other comprehensive income (loss), before tax	13,050		490		(134)		13,406
Income tax expense (benefit)	3,720		140		(38)		3,822
Other comprehensive income (loss), after tax	9,330		350		(96)		9,584
Balance, March 31, 2023	$	(52,668)	$	(9,596)	$	89	$	(62,175)

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 8 for additional information.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The Company previously granted restricted stock units that contained non-forfeitable rights to dividend equivalents which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Numerator:
Net income	$	15,258	$	9,208
Earnings allocated to participating securities	—		(5)
Numerator for earnings per share - basic and diluted	$	15,258	$	9,203
Denominator:
Weighted average common shares outstanding	31,662,954		30,977,204
Dilutive effect of outstanding restricted stock units	140,233		69,947
Weighted average common shares outstanding, including all dilutive potential shares	31,803,187		31,047,151
Earnings per share - Basic	$	0.48	$	0.30
Earnings per share - Diluted	$	0.48	$	0.30

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STOCK-BASED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.

The following is a summary of stock-based compensation expense (benefit):

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Restricted stock units	$	273	$	277
Performance restricted stock units	236		240
Total awards classified as equity	509		517
Stock appreciation rights	(129)		1
Total stock-based compensation expense	$	380	$	518

Restricted Stock Units

A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2024 and 2023, the total grant date fair value of the restricted stock units granted was $1.0 million and $1.0 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the three months ended March 31, 2024 and 2023 was $1.4 million and $1.1 million, respectively.

The following is a summary of restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	128,159	$	19.56	139,986	$	18.01
Granted	51,246	19.06		41,847	22.72
Vested	(70,540)	18.96		(51,693)	17.91
Forfeited	—	—		(718)	16.58
Ending balance	108,865	$	19.71	129,422	$	19.58

As of March 31, 2024, unrecognized compensation cost related to the non-vested restricted stock units was $1.7 million. This cost is expected to be recognized over the weighted average remaining service period of 1.9 years.

Performance Restricted Stock Units

A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the three months ended March 31, 2024 and 2023, the total fair value of the performance restricted stock units granted was $0.4 million and $0.4 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date. The total intrinsic value of performance restricted stock units that vested during the three months ended March 31, 2024 was $0.8 million.

The following is a summary of performance restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	79,097	$	18.25	62,067	$	17.02
Granted	19,933	19.06		17,030	22.72
Adjustment for performance condition	14,349	15.53		—	—
Vested	(43,046)	15.53		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

As of March 31, 2024, unrecognized compensation cost related to non-vested performance restricted stock units was $0.6 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.7 years.

Stock Appreciation Rights

A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award.

The following is a summary of stock appreciation rights activity:

	Three Months Ended March 31,
	2024			2023
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

As of March 31, 2024, all stock appreciation rights were exercisable and had a weighted average remaining term of 5.1 years. There was no unrecognized compensation cost for stock appreciation rights as of March 31, 2024.

As of March 31, 2024 and December 31, 2023, the liability recorded for outstanding stock appreciation rights was $0.4 million and $0.6 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.

	March 31, 2024		December 31, 2023
Risk-free interest rate	4.21	%	3.85	%
Expected volatility	37.35	%	37.37	%
Expected life (in years)	5.4		5.7
Expected dividend yield	3.99	%	3.22	%

As of December 31, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million which was paid in 2024.

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REGULATORY MATTERS

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Other Disclosure [Abstract]

REGULATORY MATTERS

REGULATORY MATTERS

The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.

Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer is 2.5% of risk-weighted assets.

As of March 31, 2024 and December 31, 2023, the Company and the Bank each met all capital adequacy requirements to which they were subject. The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:

	March 31, 2024
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	611,371	15.79	%	$	309,672	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	532,901		13.77		232,254		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	481,711		12.44		174,190		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	532,901		10.65		200,131		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	597,680	15.45	%	$	309,434	8.00	%	$	386,792	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		232,075		6.00		309,434		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		174,056		4.50		251,415		6.50
Tier 1 Capital (to Average Assets)	558,704		11.17		199,999		4.00		249,999		5.00

	December 31, 2023
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	603,234	15.33	%	$	314,814	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	527,964		13.42		236,110		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	476,789		12.12		177,083		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	527,964		10.49		201,231		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	586,604	14.92	%	$	314,496	8.00	%	$	393,119	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		235,872		6.00		314,496		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		176,904		4.50		255,528		6.50
Tier 1 Capital (to Average Assets)	550,808		10.96		201,063		4.00		251,329		5.00

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FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

Recurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income (loss). The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	138,186	$	—	$	—	$	138,186
U.S. government agency	—		50,459		—		50,459
Municipal	—		134,648		—		134,648
Mortgage-backed:
Agency residential	—		168,546		—		168,546
Agency commercial	—		124,475		—		124,475
Corporate	—		52,706		—		52,706
Equity securities with readily determinable fair values	3,324		—		—		3,324
Mortgage servicing rights	—		—		19,081		19,081
Derivative financial assets	—		7,761		—		7,761
Derivative financial liabilities	—		7,507		—		7,507

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	148,622	$	—	$	—	$	148,622
U.S. government agency	—		52,097		—		52,097
Municipal	—		205,557		—		205,557
Mortgage-backed:
Agency residential	—		173,984		—		173,984
Agency commercial	—		127,012		—		127,012
Corporate	—		52,189		—		52,189
Equity securities with readily determinable fair values	3,360		—		—		3,360
Mortgage servicing rights	—		—		19,001		19,001
Derivative financial assets	—		6,549		—		6,549
Derivative financial liabilities	—		6,227		—		6,227

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,081	Discounted cash flows	Constant pre-payment rates (CPR)	6.4% to 59.7% (8.6%)
				Discount rate	9.0% to 55.0% (9.8%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,001	Discounted cash flows	Constant pre-payment rates (CPR)	6.2% to 49.4% (8.4%)
				Discount rate	9.0% to 37.3% (9.6%)

Nonrecurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis.

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.

Collateral-Dependent Loans

Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

The following tables summarize assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	3,479	$	—	$	3,479
Collateral-dependent loans	—		—		34,262		34,262
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		277		277

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	2,318	$	—	$	2,318
Collateral-dependent loans	—		—		32,685		32,685
Foreclosed assets	—		—		852		852

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	34,262	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale	317		Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets	277		Appraisal	Appraisal adjustments	7% (7%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	32,685	Appraisal of collateral	Appraisal adjustments	Not meaningful
Foreclosed assets	852		Appraisal	Appraisal adjustments	7% (7%)

Other Fair Value Methods

The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time and Brokered Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

FHLB Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.

Subordinated Notes

The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments:

(dollars in thousands)	Fair Value Hierarchy Level	March 31, 2024				December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	260,212	$	260,212	$	141,252	$	141,252
Debt securities held-to-maturity	Level 2	517,472		458,640		521,439		466,496
Restricted stock	Level 3	5,155		5,155		7,160		7,160
Loans, net	Level 3	3,305,147		3,272,226		3,364,369		3,349,540
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	23,117		23,117		24,534		24,534
Financial liabilities:
Time deposits	Level 3	713,142		705,385		627,253		619,682
Brokered time deposits	Level 3	55,762		55,782		144,880		144,944
Securities sold under agreements to repurchase	Level 2	31,864		31,864		42,442		42,442
FHLB advances	Level 3	12,725		12,524		12,623		12,621
Subordinated notes	Level 3	39,494		37,031		39,474		36,993
Junior subordinated debentures	Level 3	52,804		48,682		52,789		48,529
Accrued interest payable	Level 2	6,316		6,316		6,969		6,969

The Company estimated the fair value of lending related commitments as described in Note 14 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods, and termination clauses provided in the agreements.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Financial Instruments

The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Such commitments and conditional obligations were as follows:

	Contractual Amount
(dollars in thousands)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	894,571	$	869,013
Standby letters of credit	24,753		23,732

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.

Allowance for Credit Losses on Unfunded Lending-related Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $3.8 million and $3.8 million as of March 31, 2024 and December 31, 2023, respectively.

Legal Contingencies

In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements.

DeBaere, et al v. Heartland Bank and Trust Company

The Bank was a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company

The Bank was a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction.

On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al and Miller, et al cases in which the Bank would make one-time cash payments totaling $3.4 million, without admitting fault, to release the Bank from further liability and claims in both the cases.

Definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court on December 15, 2023 in the DeBaere, et al case and on February 16, 2024 in the Miller, et al case. The Bank made the one-time cash payments totaling $3.4 million during the fourth quarter of 2023. The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders.

An initial $2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $0.8 million accrual was recognized in other noninterest expense during the second quarter of 2023, following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases.

John Pickett v. Town and Country Bank

The Bank is a defendant in a purported class action lawsuit filed in October 2023, in the Circuit Court of Sangamon County, Illinois. The plaintiff, a customer of Town and Country Bank, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

On March 29, 2024, the Bank reached an agreement in principle to settle this case in which the Bank would make a one-time cash payment of $0.3 million, without admitting fault, to release the Bank from further liability and claims in the case. If the proposed settlement agreement is approved by the Court and is not subject to appeal, the Bank will make a one-time cash payment of $0.3 million.

The proposed settlement does not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the case. The Bank has agreed in principle to the settlement to avoid the cost, risks, and distraction of continued litigation. The Company believes the proposed settlement is in the best interests of the Company and its shareholders.

An initial accrual of $0.2 million was recorded during the fourth quarter of 2023, reflecting management's best estimate at that time, and an additional $0.1 million accrual was recorded during the first quarter of 2024. As of March 31, 2024 and December 31, 2023, the Company had $0.3 million and $0.2 million accrued related to this matter, respectively.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
NET INCOME	$ 15,258	$ 9,208

XML

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 6, 2024.

The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

Use of Estimates

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses.

Low Income Housing Tax Credits

Low Income Housing Tax Credits

The Company holds an ownership interest in a limited liability company, as a limited partner, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method.

The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $7.5 million as of March 31, 2024.

Segment Reporting

Segment Reporting

The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Impact of Recently Adopted Accounting Standards and Recent Accounting Pronouncements

Impact of Recently Adopted Accounting Standards

On January 1, 2024, the Company adopted ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323). ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $7.2 million increase to other assets and other liabilities, as a result of the adoption.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method. ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard did not have an impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

Recurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income (loss). The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.

Collateral-Dependent Loans

Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time and Brokered Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

FHLB Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.

Subordinated Notes

The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

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ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of expenses incurred related to the acquisition

During the three months ended March 31, 2023, HBT Financial incurred the following expenses related to the acquisition of Town and Country:

(dollars in thousands)	Three Months Ended March 31, 2023
PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries	3,518
Data processing	1,855
Marketing and customer relations	14
Legal fees and other noninterest expense	1,753
Total noninterest expense	7,140
Total Town and Country acquisition-related expenses	$	13,064

Schedule of recognized identified assets acquired and liabilities assumed

The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands):

	Fair Value
Assets acquired:
Cash and cash equivalents	$	23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	301
Restricted stock	2,822
Loans held for sale	1,612
Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129
Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	8,940
Total assets acquired	906,658
Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	$	78,854
Consideration paid:
Cash	$	37,996
Common stock	71,356
Total consideration paid	$	109,352
Goodwill	$	30,498

Schedule of the components of the purchase price of financing receivables purchased with credit deterioration

The following table provides a summary of these PCD loans at acquisition (dollars in thousands):

Unpaid principal balance	$	89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$	86,357

Business acquisition, pro forma information

The acquisition-related expenses that have been recognized are included in net income in the following table.

	Pro Forma
(dollars in thousands, except per share data)	Three Months Ended March 31, 2023
Total revenues (net interest income and noninterest income)	$	57,770
Net income	10,015
Earnings per share - basic	0.31
Earnings per share - diluted	0.31

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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:

	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	149,697	$	—	$	(11,511)	$	—	$	138,186
U.S. government agency	53,836		—		(3,377)		—		50,459
Municipal	156,403		1		(21,756)		—		134,648
Mortgage-backed:
Agency residential	183,553		51		(15,058)		—		168,546
Agency commercial	138,873		2		(14,400)		—		124,475
Corporate	57,694		—		(4,988)		—		52,706
Total available-for-sale	$	740,056	$	54	$	(71,090)	$	—	$	669,020
	March 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,454	$	—	$	(8,977)	$	79,477	$	—
Municipal	38,459		158		(351)		38,266		—
Mortgage-backed:
Agency residential	93,737		—		(6,497)		87,240		—
Agency commercial	296,822		—		(43,165)		253,657		—
Total held-to-maturity	$	517,472	$	158	$	(58,990)	$	458,640	$	—

	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461
	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-maturity:
U.S. government agency	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of March 31, 2024 and December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:

	March 31, 2024
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,511)	$	138,186	$	(11,511)	$	138,186
U.S. government agency	—		—		(3,377)		50,432		(3,377)		50,432
Municipal	(10)		2,648		(21,746)		131,224		(21,756)		133,872
Mortgage-backed:
Agency residential	(32)		7,947		(15,026)		155,172		(15,058)		163,119
Agency commercial	(10)		913		(14,390)		123,480		(14,400)		124,393
Corporate	(7)		1,987		(4,981)		50,706		(4,988)		52,693
Total available-for-sale	$	(59)	$	13,495	$	(71,031)	$	649,200	$	(71,090)	$	662,695

	December 31, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

Schedule of amortized cost and fair value of securities by contractual maturity

The amortized cost and fair value of debt securities by contractual maturity, as of March 31, 2024, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in 1 year or less	$	46,701	$	45,715	$	2,791	$	2,789
Due after 1 year through 5 years	193,559		179,686		44,748		42,300
Due after 5 years through 10 years	155,271		132,382		73,706		67,434
Due after 10 years	22,099		18,216		5,668		5,220
Mortgage-backed:
Agency residential	183,553		168,546		93,737		87,240
Agency commercial	138,873		124,475		296,822		253,657
Total	$	740,056	$	669,020	$	517,472	$	458,640

Schedule of sales of debt securities

Sales of debt securities were as follows during the three months ended March 31:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds from sales	$	66,812	$	145,844
Gross realized gains	—		—
Gross realized losses	(3,382)		(1,007)

Schedule of equity securities with initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows:

	March 31, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,124	$	2,957
Cumulative net unrealized gains (losses)	200		(335)
Carrying value	$	3,324	$	2,622

	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value
Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

Schedule of unrealized gains (losses) on equity securities

Unrealized gains (losses) on equity securities were as follows during the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Readily determinable fair value	$	(16)	$	116
No readily determinable fair value	—		(138)
Unrealized gains (losses) on equity securities	$	(16)	$	(22)

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

Summary of Loans

Major categories of loans are summarized as follows:

(dollars in thousands)	March 31, 2024		December 31, 2023
Commercial and industrial	$	402,206	$	427,800
Commercial real estate - owner occupied	294,967		295,842
Commercial real estate - non-owner occupied	890,251		880,681
Construction and land development	345,991		363,983
Multi-family	421,573		417,923
One-to-four family residential	485,948		491,508
Agricultural and farmland	287,205		287,294
Municipal, consumer, and other	217,821		239,386
Loans, before allowance for credit losses	3,345,962		3,404,417
Allowance for credit losses	(40,815)		(40,048)
Loans, net of allowance for credit losses	$	3,305,147	$	3,364,369

Schedule of activity in allowance for loan losses

The following tables detail activity in the allowance for credit losses:

	Three Months Ended March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048
Provision for credit losses	239		(117)		2,102		(454)		8		(421)		32		(829)		560
Charge-offs	(15)		—		—		—		—		(21)		—		(191)		(227)
Recoveries	26		2		242		1		—		84		7		72		434
Ending balance	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	Three Months Ended March 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Beginning balance	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for loan losses	387		619		305		1,139		526		1,081		305		739		5,101
Charge-offs	—		(3)		—		—		—		(22)		—		(117)		(142)
Recoveries	19		12		74		3		—		58		1		87		254
Ending balance	$	2,932	$	2,535	$	7,840	$	7,574	$	2,151	$	4,165	$	2,674	$	8,905	$	38,776

The following tables present loans and the related allowance for credit losses by category:

	March 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	401,036	$	294,322	$	875,344	$	345,775	$	421,257	$	479,840	$	287,061	$	202,934	$	3,307,569
Individually evaluated for impairment	1,170		645		14,907		216		316		6,108		144		14,887		38,393
Total	$	402,206	$	294,967	$	890,251	$	345,991	$	421,573	$	485,948	$	287,205	$	217,821	$	3,345,962
Allowance for credit losses:
Collectively evaluated for impairment	$	4,882	$	2,157	$	9,224	$	5,545	$	3,845	$	4,603	$	1,014	$	5,414	$	36,684
Individually evaluated for impairment	348		—		834		—		—		243		—		2,706		4,131
Total	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815
	December 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total
Loan balances:
Collectively evaluated for impairment	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417
Allowance for loan losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

Schedule of gross charge-offs, further sorted by origination year

Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2024 and 2023.

	Gross Charge-Offs for the Three Months Ended March 31, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior
Commercial and industrial	$	—	$	3	$	—	$	—	$	—	$	11	$	1	$	—	$	15
Commercial real estate - owner occupied	—		—		—		—		—		—		—		—		—
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		3		—		—		6		12		—		21
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	44		56		6		—		—		—		85		—		191
Total	$	44	$	59	$	9	$	—	$	—	$	17	$	98	$	—	$	227
	Gross Charge-Offs for the Three Months Ended March 31, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - owner occupied	—		3		—		—		—		—		—		—		3
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		21		—		—		22
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	35		53		—		9		—		—		20		—		117
Total	$	35	$	56	$	—	$	9	$	1	$	21	$	20	$	—	$	142

Schedule of amortized cost of collateral dependent loans

The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

	March 31, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	895	$	275	$	1,170	$	348
Commercial real estate - owner occupied	645		—		—		645		—
Commercial real estate - non-owner occupied	14,907		—		—		14,907		834
Construction and land development	216		—		—		216		—
Multi-family	316		—		—		316		—
One-to-four family residential	6,108		—		—		6,108		243
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,817		48		22		14,887		2,706
Total	$	37,153	$	943	$	297	$	38,393	$	4,131
	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total
Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

Schedule of recorded investment on past due basis

The following tables present loans by category based on current payment and accrual status:

	March 31, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	400,152	$	884	$	—	$	1,170	$	402,206
Commercial real estate - owner occupied	294,148		174		—		645		294,967
Commercial real estate - non-owner occupied	885,963		2,645		—		1,643		890,251
Construction and land development	345,775		—		—		216		345,991
Multi-family	421,142		115		—		316		421,573
One-to-four family residential	478,351		2,143		—		5,454		485,948
Agricultural and farmland	286,977		84		—		144		287,205
Municipal, consumer, and other	217,629		123		—		69		217,821
Total	$	3,330,137	$	6,168	$	—	$	9,657	$	3,345,962

	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans
Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

Schedule of non-accrual loans

The following tables present nonaccrual loans with and without a related allowance for credit losses:

	March 31, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	1,057	$	113	$	1,170
Commercial real estate - owner occupied	—		645		645
Commercial real estate - non-owner occupied	—		1,643		1,643
Construction and land development	216		—		216
Multi-family	—		316		316
One-to-four family residential	145		5,309		5,454
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		69		69
Total	$	1,418	$	8,239	$	9,657
	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual
Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

Schedule of loans by category risk ratings

The following tables present loans by category based on their assigned risk ratings determined by management:

	March 31, 2024
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	388,483	$	8,882	$	4,841	$	—	$	402,206
Commercial real estate - owner occupied	275,346		12,611		7,010		—		294,967
Commercial real estate - non-owner occupied	825,513		40,095		24,643		—		890,251
Construction and land development	333,565		12,154		272		—		345,991
Multi-family	401,541		19,716		316		—		421,573
One-to-four family residential	466,266		7,000		12,682		—		485,948
Agricultural and farmland	276,427		7,092		3,686		—		287,205
Municipal, consumer, and other	201,083		1,732		15,006		—		217,821
Total	$	3,168,224	$	109,282	$	68,456	$	—	$	3,345,962

	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total
Commercial and industrial	$	419,494	$	7,128	$	1,178	$	—	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		—		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		—		880,681
Construction and land development	351,087		12,604		292		—		363,983
Multi-family	397,951		19,656		316		—		417,923
One-to-four family residential	472,355		6,671		12,482		—		491,508
Agricultural and farmland	280,867		3,071		3,356		—		287,294
Municipal, consumer, and other	222,474		1,721		15,191		—		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	—	$	3,404,417

Schedule of risk ratings of loans, further sorted by origination year

Risk ratings of loans, further sorted by origination year, are as follows as of March 31, 2024:

(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	17,320	$	73,281	$	55,707	$	17,771	$	24,591	$	33,691	$	162,876	$	3,246	$	388,483
Pass-Watch	—		3,490		1,374		955		124		1,161		766		1,012		8,882
Substandard	—		1,311		65		27		42		—		2,942		454		4,841
Total	$	17,320	$	78,082	$	57,146	$	18,753	$	24,757	$	34,852	$	166,584	$	4,712	$	402,206
Commercial real estate - owner occupied
Pass	$	7,568	$	27,742	$	63,093	$	54,117	$	52,110	$	57,399	$	13,250	$	67	$	275,346
Pass-Watch	352		3,199		919		5,070		1,414		1,657		—		—		12,611
Substandard	—		3,141		84		1,180		61		1,061		1,483		—		7,010
Total	$	7,920	$	34,082	$	64,096	$	60,367	$	53,585	$	60,117	$	14,733	$	67	$	294,967
Commercial real estate - non-owner occupied
Pass	$	11,210	$	124,093	$	246,855	$	234,215	$	87,338	$	110,263	$	9,840	$	1,699	$	825,513
Pass-Watch	—		790		6,824		6,925		348		11,383		13,586		239		40,095
Substandard	—		13,274		124		—		—		11,245		—		—		24,643
Total	$	11,210	$	138,157	$	253,803	$	241,140	$	87,686	$	132,891	$	23,426	$	1,938	$	890,251
Construction and land development
Pass	$	25,805	$	133,857	$	107,186	$	42,022	$	9,070	$	3,170	$	12,194	$	261	$	333,565
Pass-Watch	152		1,919		8,423		—		—		19		804		837		12,154
Substandard	—		—		216		—		—		56		—		—		272
Total	$	25,957	$	135,776	$	115,825	$	42,022	$	9,070	$	3,245	$	12,998	$	1,098	$	345,991
Multi-family
Pass	$	5,042	$	83,616	$	81,575	$	117,281	$	52,554	$	56,099	$	4,893	$	481	$	401,541
Pass-Watch	400		2,703		7,161		—		8,816		629		—		7		19,716
Substandard	—		—		—		316		—		—		—		—		316
Total	$	5,442	$	86,319	$	88,736	$	117,597	$	61,370	$	56,728	$	4,893	$	488	$	421,573
One-to-four family residential
Pass	$	14,674	$	98,623	$	90,394	$	78,700	$	62,792	$	61,198	$	53,859	$	6,026	$	466,266
Pass-Watch	365		2,039		283		931		605		2,296		202		279		7,000
Substandard	70		1,527		1,523		547		564		5,517		—		2,934		12,682
Total	$	15,109	$	102,189	$	92,200	$	80,178	$	63,961	$	69,011	$	54,061	$	9,239	$	485,948
Agricultural and farmland
Pass	$	17,509	$	43,295	$	35,500	$	34,208	$	31,935	$	12,397	$	100,006	$	1,577	$	276,427
Pass-Watch	137		2,878		794		94		27		761		2,355		46		7,092
Substandard	331		—		—		12		3,199		144		—		—		3,686
Total	$	17,977	$	46,173	$	36,294	$	34,314	$	35,161	$	13,302	$	102,361	$	1,623	$	287,205
Municipal, Consumer, and other
Pass	$	8,181	$	38,222	$	49,651	$	27,623	$	13,490	$	42,611	$	21,305	$	—	$	201,083
Pass-Watch	—		10		31		11		—		1,676		4		—		1,732
Substandard	31		64		62		—		—		14,825		24		—		15,006
Total	$	8,212	$	38,296	$	49,744	$	27,634	$	13,490	$	59,112	$	21,333	$	—	$	217,821
Total by Risk Rating
Pass	$	107,309	$	622,729	$	729,961	$	605,937	$	333,880	$	376,828	$	378,223	$	13,357	$	3,168,224
Pass-Watch	1,406		17,028		25,809		13,986		11,334		19,582		17,717		2,420		109,282
Substandard	432		19,317		2,074		2,082		3,866		32,848		4,449		3,388		68,456
Total	$	109,147	$	659,074	$	757,844	$	622,005	$	349,080	$	429,258	$	400,389	$	19,165	$	3,345,962

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LOAN SERVICING (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Schedule of activity in mortgage servicing rights

Activity in mortgage servicing rights is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	19,001	$	10,147
Acquired	—		10,469
Capitalized servicing rights	130		129
Fair value adjustments attributable to payments and principal reductions	(429)		(431)
Fair value adjustments attributable to changes in valuation inputs and assumptions	379		(322)
Ending balance	$	19,081	$	19,992

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FORECLOSED ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

Schedule of foreclosed assets activity

Foreclosed assets activity is as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	852	$	3,030
Acquired	—		271
Transfers from loans	203		105
Proceeds from sales	(865)		(40)
Net gain on sales	113		20
Direct write-downs	(26)		(30)
Ending balance	$	277	$	3,356

Schedule of gains (losses) on foreclosed assets

Gains (losses) on foreclosed assets includes the following:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Direct write-downs	$	(26)	$	(30)
Net gain on sales	113		20
Gains (losses) on foreclosed assets	$	87	$	(10)

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DEPOSITS (Tables)

3 Months Ended

Mar. 31, 2024

Deposits [Abstract]

Schedule of Company's interest-bearing deposits

The Company’s deposits are summarized below:

(dollars in thousands)	March 31, 2024		December 31, 2023
Noninterest-bearing deposits	$	1,047,074	$	1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,139,172		1,145,092
Money market	802,685		803,381
Savings	602,739		608,424
Time	713,142		627,253
Brokered	55,762		144,880
Total interest-bearing deposits	3,313,500		3,329,030
Total deposits	$	4,360,574	$	4,401,437

Schedule of interest expense on deposits

The components of interest expense on deposits are as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Interest-bearing demand	$	1,311	$	458
Money market	4,797		935
Savings	443		178
Time	5,925		803
Brokered	1,117		—
Total interest expense on deposits	$	13,593	$	2,374

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts

The interest rate swap agreements designated as cash flow hedges are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets	$	17,000	$	254	$	17,000	$	322

Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:

Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	132	$	94

Summary of interest rate swap agreements not designated as hedging instruments

The interest rate swap agreements not designated as hedging instruments are summarized as follows:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	93,199		7,507		94,497		6,227
Total fair value recorded in other assets	$	93,199	$	7,507	$	94,497	$	6,227
Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	93,199	$	(7,507)	$	94,497	$	(6,227)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	93,199	$	(7,507)	$	94,497	$	(6,227)

Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Not designated as hedging instruments:
Gross gains	$	2,038	$	2,737
Gross losses	(2,038)		(2,737)
Net gains (losses)	$	—	$	—

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2024

AOCI Attributable to Parent [Abstract]

Schedule of the activity and accumulated balances for components of other comprehensive income (loss)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):

	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total
Three Months Ended March 31, 2024
Balance, December 31, 2023	$	(48,579)	$	(8,549)	$	(35)	$	(57,163)
Other comprehensive income (loss) before reclassifications	(2,255)		—		64		(2,191)
Reclassifications	3,382		501		(132)		3,751
Other comprehensive income (loss), before tax	1,127		501		(68)		1,560
Income tax expense (benefit)	322		143		(20)		445
Other comprehensive income (loss), after tax	805		358		(48)		1,115
Balance, March 31, 2024	$	(47,774)	$	(8,191)	$	(83)	$	(56,048)
Three Months Ended March 31, 2023
Balance, December 31, 2022	$	(61,998)	$	(9,946)	$	185	$	(71,759)
Other comprehensive income (loss) before reclassifications	11,443		—		(40)		11,403
Reclassifications	1,607		490		(94)		2,003
Other comprehensive income (loss), before tax	13,050		490		(134)		13,406
Income tax expense (benefit)	3,720		140		(38)		3,822
Other comprehensive income (loss), after tax	9,330		350		(96)		9,584
Balance, March 31, 2023	$	(52,668)	$	(9,596)	$	89	$	(62,175)

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Numerator:
Net income	$	15,258	$	9,208
Earnings allocated to participating securities	—		(5)
Numerator for earnings per share - basic and diluted	$	15,258	$	9,203
Denominator:
Weighted average common shares outstanding	31,662,954		30,977,204
Dilutive effect of outstanding restricted stock units	140,233		69,947
Weighted average common shares outstanding, including all dilutive potential shares	31,803,187		31,047,151
Earnings per share - Basic	$	0.48	$	0.30
Earnings per share - Diluted	$	0.48	$	0.30

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STOCK-BASED COMPENSATION PLANS (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary of stock-based compensation expense

The following is a summary of stock-based compensation expense (benefit):

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Restricted stock units	$	273	$	277
Performance restricted stock units	236		240
Total awards classified as equity	509		517
Stock appreciation rights	(129)		1
Total stock-based compensation expense	$	380	$	518

Schedule of the summary of outstanding restricted stock units

The following is a summary of restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	128,159	$	19.56	139,986	$	18.01
Granted	51,246	19.06		41,847	22.72
Vested	(70,540)	18.96		(51,693)	17.91
Forfeited	—	—		(718)	16.58
Ending balance	108,865	$	19.71	129,422	$	19.58

The following is a summary of performance restricted stock unit activity:

	Three Months Ended March 31,
	2024			2023
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	79,097	$	18.25	62,067	$	17.02
Granted	19,933	19.06		17,030	22.72
Adjustment for performance condition	14,349	15.53		—	—
Vested	(43,046)	15.53		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

Schedule of the status of stock appreciation rights and changes

The following is a summary of stock appreciation rights activity:

	Three Months Ended March 31,
	2024			2023
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

Schedule of assumptions used in valuing stock appreciation rights

The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.

	March 31, 2024		December 31, 2023
Risk-free interest rate	4.21	%	3.85	%
Expected volatility	37.35	%	37.37	%
Expected life (in years)	5.4		5.7
Expected dividend yield	3.99	%	3.22	%

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REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Other Disclosure [Abstract]

Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios

The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:

	March 31, 2024
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	611,371	15.79	%	$	309,672	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	532,901		13.77		232,254		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	481,711		12.44		174,190		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	532,901		10.65		200,131		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	597,680	15.45	%	$	309,434	8.00	%	$	386,792	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		232,075		6.00		309,434		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	558,704		14.44		174,056		4.50		251,415		6.50
Tier 1 Capital (to Average Assets)	558,704		11.17		199,999		4.00		249,999		5.00

	December 31, 2023
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	603,234	15.33	%	$	314,814	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	527,964		13.42		236,110		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	476,789		12.12		177,083		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	527,964		10.49		201,231		4.00		N/A		N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	586,604	14.92	%	$	314,496	8.00	%	$	393,119	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		235,872		6.00		314,496		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		176,904		4.50		255,528		6.50
Tier 1 Capital (to Average Assets)	550,808		10.96		201,063		4.00		251,329		5.00

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Summary of assets measured at fair value on a recurring basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	138,186	$	—	$	—	$	138,186
U.S. government agency	—		50,459		—		50,459
Municipal	—		134,648		—		134,648
Mortgage-backed:
Agency residential	—		168,546		—		168,546
Agency commercial	—		124,475		—		124,475
Corporate	—		52,706		—		52,706
Equity securities with readily determinable fair values	3,324		—		—		3,324
Mortgage servicing rights	—		—		19,081		19,081
Derivative financial assets	—		7,761		—		7,761
Derivative financial liabilities	—		7,507		—		7,507

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available-for-sale:
U.S. Treasury	$	148,622	$	—	$	—	$	148,622
U.S. government agency	—		52,097		—		52,097
Municipal	—		205,557		—		205,557
Mortgage-backed:
Agency residential	—		173,984		—		173,984
Agency commercial	—		127,012		—		127,012
Corporate	—		52,189		—		52,189
Equity securities with readily determinable fair values	3,360		—		—		3,360
Mortgage servicing rights	—		—		19,001		19,001
Derivative financial assets	—		6,549		—		6,549
Derivative financial liabilities	—		6,227		—		6,227

Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,081	Discounted cash flows	Constant pre-payment rates (CPR)	6.4% to 59.7% (8.6%)
				Discount rate	9.0% to 55.0% (9.8%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	19,001	Discounted cash flows	Constant pre-payment rates (CPR)	6.2% to 49.4% (8.4%)
				Discount rate	9.0% to 37.3% (9.6%)

Summary of assets measured at fair value on a nonrecurring basis

The following tables summarize assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy:

	March 31, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	3,479	$	—	$	3,479
Collateral-dependent loans	—		—		34,262		34,262
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		277		277

	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans held for sale	$	—	$	2,318	$	—	$	2,318
Collateral-dependent loans	—		—		32,685		32,685
Foreclosed assets	—		—		852		852

Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	34,262	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale	317		Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets	277		Appraisal	Appraisal adjustments	7% (7%)

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans	$	32,685	Appraisal of collateral	Appraisal adjustments	Not meaningful
Foreclosed assets	852		Appraisal	Appraisal adjustments	7% (7%)

Summary information on the carrying amounts and estimated fair values of the Company's financial instruments

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments:

(dollars in thousands)	Fair Value Hierarchy Level	March 31, 2024				December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	260,212	$	260,212	$	141,252	$	141,252
Debt securities held-to-maturity	Level 2	517,472		458,640		521,439		466,496
Restricted stock	Level 3	5,155		5,155		7,160		7,160
Loans, net	Level 3	3,305,147		3,272,226		3,364,369		3,349,540
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	23,117		23,117		24,534		24,534
Financial liabilities:
Time deposits	Level 3	713,142		705,385		627,253		619,682
Brokered time deposits	Level 3	55,762		55,782		144,880		144,944
Securities sold under agreements to repurchase	Level 2	31,864		31,864		42,442		42,442
FHLB advances	Level 3	12,725		12,524		12,623		12,621
Subordinated notes	Level 3	39,494		37,031		39,474		36,993
Junior subordinated debentures	Level 3	52,804		48,682		52,789		48,529
Accrued interest payable	Level 2	6,316		6,316		6,969		6,969

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of commitments and conditional obligations

Such commitments and conditional obligations were as follows:

	Contractual Amount
(dollars in thousands)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	894,571	$	869,013
Standby letters of credit	24,753		23,732

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ACCOUNTING POLICIES - (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum loss exposure, amount	$ 7,500
Number of segments | segment	1
Stockholders’ equity	$ 496,681	$ 489,496	$ 450,098	$ 373,632
Other assets	60,542	55,239
Other liabilities	46,368	34,909
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity	$ 278,353	269,051	$ 228,782	232,004
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity		116		(6,922)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2023-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in deferred tax liabilities		100
Other assets		7,200
Other liabilities		7,200
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity		116		$ (6,922)
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accounting Standards Update 2023-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity		$ 100

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ACQUISITIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 01, 2023	Sep. 30, 2023	Mar. 31, 2024	Dec. 31, 2023
NONINTEREST EXPENSE
Goodwill			$ 59,820	$ 59,820
Town and Country
NONINTEREST EXPENSE
Percentage of voting interests acquired	100.00%
Stock consideration per share (shares per share)	1.9010
Cash consideration per share (in dollars per share)	$ 35.66
Business acquisition, equity interest issued or issuable (in shares)	3,378,600
Cash consideration	$ 37,996
Share price (in dollars per share)	$ 21.12
Business combination, consideration transferred	$ 109,352
Maximum period for refinement of fair values from closing date	1 year
Adjustment, income tax assets and liabilities		$ 100
Goodwill	$ 30,498

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ACQUISITIONS - Acquisition-related expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
NONINTEREST EXPENSE
Provision for credit losses	$ (560)	$ (5,101)
NONINTEREST EXPENSE
Marketing and customer relations	996	836
Total noninterest expense	31,268	35,933
Town and Country
NONINTEREST EXPENSE
Provision for credit losses		5,924
NONINTEREST EXPENSE
Salaries		3,518
Data processing		1,855
Marketing and customer relations		14
Legal fees and other noninterest expense		1,753
Total noninterest expense		7,140
Total Town and Country acquisition-related expenses	$ 0	$ 13,064

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ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands	Feb. 01, 2023	Mar. 31, 2024	Dec. 31, 2023
Consideration paid:
Goodwill		$ 59,820	$ 59,820
Town and Country
Assets acquired:
Cash and cash equivalents	$ 23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	301
Restricted stock	2,822
Loans held for sale	1,612
Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129
Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	8,940
Total assets acquired	906,658
Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	78,854
Consideration paid:
Cash	37,996
Common stock	71,356
Total consideration paid	109,352
Goodwill	$ 30,498

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ACQUISITIONS - PCD loans and subsequent changes (Details) - USD ($) $ in Thousands		3 Months Ended	11 Months Ended
	Feb. 01, 2023	Mar. 31, 2023	Dec. 31, 2023
NONINTEREST EXPENSE
Allowance for credit losses at acquisition		$ (1,247)
Town and Country
NONINTEREST EXPENSE
Unpaid principal balance	$ 89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$ 86,357
Subsequent adjustment to allowance for credit losses on loans			$ 5,200
Subsequent adjustment to allowance for credit losses on unfunded commitments			$ 700

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ACQUISITIONS - Schedule of pro forma (Details) - Town and Country $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares
NONINTEREST EXPENSE
Total revenues (net interest income and noninterest income) | $	$ 57,770
Net income | $	$ 10,015
Earnings per share - basic (in dollars per share) | $ / shares	$ 0.31
Earnings per share - diluted (in dollars per share) | $ / shares	$ 0.31

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SECURITIES - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) security	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
SECURITIES
Number of securities in an unrealized loss position for a period of twelve months or more | security	690
Number of securities in an unrealized loss position for a period of less than twelve months | security	73
Debt securities, available-for-sale, accrued interest	$ 5,400			$ 6,000
Proceeds from sale of equity securities	20		$ 0
Impairments of downward adjustments	200
Adjustment to carrying value of equity securities with no readily determinable fair value	200
Upward adjustment on equity securities with no readily determinable fair value	$ 0			0
Municipal
SECURITIES
Percentage of securities with general obligation issue	73.00%
Corporate
SECURITIES
Provision for credit losses increase (decrease)		$ (600)	$ 600
Assets Pledged
SECURITIES
Carrying value of securities pledged to secure public and trust deposits	$ 388,800			$ 419,400

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SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale:
Amortized Cost	$ 740,056	$ 831,624
Gross Unrealized Gains	54	99
Gross Unrealized Losses	(71,090)	(72,262)
Allowance for Credit Losses	0	0
Fair Value	669,020	759,461
Held-to-maturity
Amortized Cost	517,472	521,439
Gross Unrealized Gains	158	394
Gross Unrealized Losses	(58,990)	(55,337)
Fair Value	458,640	466,496
Allowance for Credit Losses	0	0
U.S. Treasury
Available-for-sale:
Amortized Cost	149,697	159,715
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(11,511)	(11,093)
Allowance for Credit Losses	0	0
Fair Value	138,186	148,622
U.S. government agency
Available-for-sale:
Amortized Cost	53,836	55,359
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(3,377)	(3,262)
Allowance for Credit Losses	0	0
Fair Value	50,459	52,097
Held-to-maturity
Amortized Cost	88,454	88,448
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(8,977)	(8,292)
Fair Value	79,477	80,156
Allowance for Credit Losses	0	0
Municipal
Available-for-sale:
Amortized Cost	156,403	229,030
Gross Unrealized Gains	1	26
Gross Unrealized Losses	(21,756)	(23,499)
Allowance for Credit Losses	0	0
Fair Value	134,648	205,557
Held-to-maturity
Amortized Cost	38,459	38,442
Gross Unrealized Gains	158	394
Gross Unrealized Losses	(351)	(163)
Fair Value	38,266	38,673
Allowance for Credit Losses	0	0
Agency residential
Available-for-sale:
Amortized Cost	183,553	188,641
Gross Unrealized Gains	51	61
Gross Unrealized Losses	(15,058)	(14,718)
Allowance for Credit Losses	0	0
Fair Value	168,546	173,984
Held-to-maturity
Amortized Cost	93,737	95,828
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6,497)	(5,569)
Fair Value	87,240	90,259
Allowance for Credit Losses	0	0
Agency commercial
Available-for-sale:
Amortized Cost	138,873	141,214
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(14,400)	(14,205)
Allowance for Credit Losses	0	0
Fair Value	124,475	127,012
Held-to-maturity
Amortized Cost	296,822	298,721
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(43,165)	(41,313)
Fair Value	253,657	257,408
Allowance for Credit Losses	0	0
Corporate
Available-for-sale:
Amortized Cost	57,694	57,665
Gross Unrealized Gains	0	9
Gross Unrealized Losses	(4,988)	(5,485)
Allowance for Credit Losses	0	0
Fair Value	$ 52,706	$ 52,189

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SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in 1 year or less	$ 46,701
Due after 1 year through 5 years	193,559
Due after 5 years through 10 years	155,271
Due after 10 years	22,099
Total	740,056
Fair Value
Due in 1 year or less	45,715
Due after 1 year through 5 years	179,686
Due after 5 years through 10 years	132,382
Due after 10 years	18,216
Fair Value	669,020	$ 759,461
Amortized Cost
Due in 1 year or less	2,791
Due after 1 year through 5 years	44,748
Due after 5 years through 10 years	73,706
Due after 10 years	5,668
Total	517,472
Fair Value
Due in 1 year or less	2,789
Due after 1 year through 5 years	42,300
Due after 5 years through 10 years	67,434
Due after 10 years	5,220
Fair Value	458,640	466,496
Agency residential
Amortized Cost
Total	183,553
Fair Value
Fair Value	168,546	173,984
Amortized Cost
Total	93,737
Fair Value
Fair Value	87,240	90,259
Agency commercial
Amortized Cost
Total	138,873
Fair Value
Fair Value	124,475	127,012
Amortized Cost
Total	296,822
Fair Value
Fair Value	$ 253,657	$ 257,408

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SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Unrealized Loss
Less than 12 Months	$ (59)	$ (631)
12 Months or More	(71,031)	(71,631)
Total	(71,090)	(72,262)
Fair Value
Less than 12 Months	13,495	21,648
12 Months or More	649,200	720,834
Total	662,695	742,482
U.S. Treasury
Unrealized Loss
Less than 12 Months	0	0
12 Months or More	(11,511)	(11,093)
Total	(11,511)	(11,093)
Fair Value
Less than 12 Months	0	0
12 Months or More	138,186	148,622
Total	138,186	148,622
U.S. government agency
Unrealized Loss
Less than 12 Months	0	(2)
12 Months or More	(3,377)	(3,260)
Total	(3,377)	(3,262)
Fair Value
Less than 12 Months	0	168
12 Months or More	50,432	51,910
Total	50,432	52,078
Municipal
Unrealized Loss
Less than 12 Months	(10)	(26)
12 Months or More	(21,746)	(23,473)
Total	(21,756)	(23,499)
Fair Value
Less than 12 Months	2,648	4,749
12 Months or More	131,224	194,287
Total	133,872	199,036
Agency residential
Unrealized Loss
Less than 12 Months	(32)	(163)
12 Months or More	(15,026)	(14,555)
Total	(15,058)	(14,718)
Fair Value
Less than 12 Months	7,947	9,354
12 Months or More	155,172	156,785
Total	163,119	166,139
Agency commercial
Unrealized Loss
Less than 12 Months	(10)	(26)
12 Months or More	(14,390)	(14,179)
Total	(14,400)	(14,205)
Fair Value
Less than 12 Months	913	3,016
12 Months or More	123,480	123,404
Total	124,393	126,420
Corporate
Unrealized Loss
Less than 12 Months	(7)	(414)
12 Months or More	(4,981)	(5,071)
Total	(4,988)	(5,485)
Fair Value
Less than 12 Months	1,987	4,361
12 Months or More	50,706	45,826
Total	$ 52,693	$ 50,187

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SECURITIES - Sale of debt securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 66,812	$ 145,844
Gross realized gains	0	0
Gross realized losses	$ (3,382)	$ (1,007)

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SECURITIES - Equity securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Readily Determinable Fair Value
Initial cost	$ 3,124	$ 3,143
Cumulative net unrealized gains (losses)	200	217
Carrying value	3,324	3,360
No Readily Determinable Fair Value
Initial cost	2,957	2,840
Cumulative net unrealized gains (losses)	(335)	(335)
Carrying value	$ 2,622	$ 2,505

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SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net unrealized gains (losses) on equity securities:
Readily determinable fair value	$ (16)	$ 116
No readily determinable fair value	0	(138)
Unrealized gains (losses) on equity securities	$ (16)	$ (22)

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,345,962	$ 3,404,417
Allowance for credit losses	(40,815)	(40,048)	$ (38,776)	$ (25,333)
Loans, net of allowance for credit losses	3,305,147	3,364,369
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	402,206	427,800
Allowance for credit losses	(5,230)	(4,980)	(2,932)	(3,279)
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	294,967	295,842
Allowance for credit losses	(2,157)	(2,272)	(2,535)	(1,193)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	890,251	880,681
Allowance for credit losses	(10,058)	(7,714)	(7,840)	(6,721)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	345,991	363,983
Allowance for credit losses	(5,545)	(5,998)	(7,574)	(4,223)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	421,573	417,923
Allowance for credit losses	(3,845)	(3,837)	(2,151)	(1,472)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	485,948	491,508
Allowance for credit losses	(4,846)	(5,204)	(4,165)	(1,759)
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	287,205	287,294
Allowance for credit losses	(1,014)	(975)	(2,674)	(796)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	217,821	239,386
Allowance for credit losses	$ (8,120)	$ (9,068)	$ (8,905)	$ (5,890)

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 40,048	$ 25,333
PCD allowance established in acquisition		1,247
Provision for credit losses	560	5,101
Charge-offs	(227)	(142)
Recoveries	434	254
Ending balance	40,815	38,776
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,980	3,279
PCD allowance established in acquisition		69
Provision for credit losses	239	387
Charge-offs	(15)	0
Recoveries	26	19
Ending balance	5,230	2,932
Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,272	1,193
PCD allowance established in acquisition		127
Provision for credit losses	(117)	619
Charge-offs	0	(3)
Recoveries	2	12
Ending balance	2,157	2,535
Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	7,714	6,721
PCD allowance established in acquisition		239
Provision for credit losses	2,102	305
Charge-offs	0	0
Recoveries	242	74
Ending balance	10,058	7,840
Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,998	4,223
PCD allowance established in acquisition		240
Provision for credit losses	(454)	1,139
Charge-offs	0	0
Recoveries	1	3
Ending balance	5,545	7,574
Multi-family
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,837	1,472
PCD allowance established in acquisition		68
Provision for credit losses	8	526
Charge-offs	0	0
Recoveries	0	0
Ending balance	3,845	2,151
One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,204	1,759
PCD allowance established in acquisition		492
Provision for credit losses	(421)	1,081
Charge-offs	(21)	(22)
Recoveries	84	58
Ending balance	4,846	4,165
Agricultural and farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	975	796
PCD allowance established in acquisition		5
Provision for credit losses	32	305
Charge-offs	0	0
Recoveries	7	1
Ending balance	1,014	2,674
Municipal, consumer, and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	9,068	5,890
PCD allowance established in acquisition		7
Provision for credit losses	(829)	739
Charge-offs	(191)	(117)
Recoveries	72	87
Ending balance	8,120	$ 8,905
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	6,983
Cumulative Effect, Period of Adoption, Adjustment | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	(822)
Cumulative Effect, Period of Adoption, Adjustment | Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	587
Cumulative Effect, Period of Adoption, Adjustment | Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	501
Cumulative Effect, Period of Adoption, Adjustment | Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,969
Cumulative Effect, Period of Adoption, Adjustment | Multi-family
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	85
Cumulative Effect, Period of Adoption, Adjustment | One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	797
Cumulative Effect, Period of Adoption, Adjustment | Agricultural and farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,567
Cumulative Effect, Period of Adoption, Adjustment | Municipal, consumer, and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,299

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Gross Chargeoffs by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Term Loans by Origination Year
Gross write-offs, year one	$ 44	$ 35
Gross write-offs, year two	59	56
Gross write-offs year three	9	0
Gross write-offs, year four	0	9
Gross write-offs, year five	0	1
Gross write-offs, prior	17	21
Revolving Loans	98	20
Revolving Loans Converted to Term	0	0
Total	227	142
Commercial and industrial
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	3	0
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	11	0
Revolving Loans	1	0
Revolving Loans Converted to Term	0	0
Total	15	0
Commercial real estate - owner occupied
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	3
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	3
Commercial real estate - non-owner occupied
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	0
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Construction and land development
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	0
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Multi-family
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	0
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
One-to-four family residential
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	0
Gross write-offs year three	3	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	1
Gross write-offs, prior	6	21
Revolving Loans	12	0
Revolving Loans Converted to Term	0	0
Total	21	22
Agricultural and farmland
Term Loans by Origination Year
Gross write-offs, year one	0	0
Gross write-offs, year two	0	0
Gross write-offs year three	0	0
Gross write-offs, year four	0	0
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Municipal, consumer, and other
Term Loans by Origination Year
Gross write-offs, year one	44	35
Gross write-offs, year two	56	53
Gross write-offs year three	6	0
Gross write-offs, year four	0	9
Gross write-offs, year five	0	0
Gross write-offs, prior	0	0
Revolving Loans	85	20
Revolving Loans Converted to Term	0	0
Total	$ 191	$ 117

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Loan balances:
Collectively evaluated for impairment	$ 3,307,569	$ 3,367,513
Individually evaluated for impairment	38,393	36,904
Total	3,345,962	3,404,417
Allowance for loan losses:
Collectively evaluated for impairment	36,684	35,829
Individually evaluated for impairment	4,131	4,219
Allowance for Credit Losses	40,815	40,048	$ 38,776	$ 25,333
Commercial and industrial
Loan balances:
Collectively evaluated for impairment	401,036	427,528
Individually evaluated for impairment	1,170	272
Total	402,206	427,800
Allowance for loan losses:
Collectively evaluated for impairment	4,882	4,960
Individually evaluated for impairment	348	20
Allowance for Credit Losses	5,230	4,980	2,932	3,279
Commercial real estate - owner occupied
Loan balances:
Collectively evaluated for impairment	294,322	295,672
Individually evaluated for impairment	645	170
Total	294,967	295,842
Allowance for loan losses:
Collectively evaluated for impairment	2,157	2,272
Individually evaluated for impairment	0	0
Allowance for Credit Losses	2,157	2,272	2,535	1,193
Commercial real estate - non-owner occupied
Loan balances:
Collectively evaluated for impairment	875,344	865,394
Individually evaluated for impairment	14,907	15,287
Total	890,251	880,681
Allowance for loan losses:
Collectively evaluated for impairment	9,224	6,693
Individually evaluated for impairment	834	1,021
Allowance for Credit Losses	10,058	7,714	7,840	6,721
Construction and land development
Loan balances:
Collectively evaluated for impairment	345,775	363,767
Individually evaluated for impairment	216	216
Total	345,991	363,983
Allowance for loan losses:
Collectively evaluated for impairment	5,545	5,998
Individually evaluated for impairment	0	0
Allowance for Credit Losses	5,545	5,998	7,574	4,223
Multi-family
Loan balances:
Collectively evaluated for impairment	421,257	417,608
Individually evaluated for impairment	316	315
Total	421,573	417,923
Allowance for loan losses:
Collectively evaluated for impairment	3,845	3,837
Individually evaluated for impairment	0	0
Allowance for Credit Losses	3,845	3,837	2,151	1,472
One-to-four family residential
Loan balances:
Collectively evaluated for impairment	479,840	486,049
Individually evaluated for impairment	6,108	5,459
Total	485,948	491,508
Allowance for loan losses:
Collectively evaluated for impairment	4,603	4,957
Individually evaluated for impairment	243	247
Allowance for Credit Losses	4,846	5,204	4,165	1,759
Agricultural and farmland
Loan balances:
Collectively evaluated for impairment	287,061	287,150
Individually evaluated for impairment	144	144
Total	287,205	287,294
Allowance for loan losses:
Collectively evaluated for impairment	1,014	975
Individually evaluated for impairment	0	0
Allowance for Credit Losses	1,014	975	2,674	796
Municipal, consumer, and other
Loan balances:
Collectively evaluated for impairment	202,934	224,345
Individually evaluated for impairment	14,887	15,041
Total	217,821	239,386
Allowance for loan losses:
Collectively evaluated for impairment	5,414	6,137
Individually evaluated for impairment	2,706	2,931
Allowance for Credit Losses	$ 8,120	$ 9,068	$ 8,905	$ 5,890

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Amortized cost of collateralized loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	$ 3,345,962	$ 3,404,417
Allowance for Credit Losses	40,815	40,048	$ 38,776	$ 25,333
Financing receivable, accrued interest, before allowance for credit loss	17,300	18,400
Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	38,393	36,904
Allowance for Credit Losses	4,131	4,219
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	37,153	36,569
Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	943	76
Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	297	259
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	402,206	427,800
Allowance for Credit Losses	5,230	4,980	2,932	3,279
Commercial and industrial | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	1,170	272
Allowance for Credit Losses	348	20
Commercial and industrial | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Commercial and industrial | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	895	37
Commercial and industrial | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	275	235
Commercial real estate - owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	294,967	295,842
Allowance for Credit Losses	2,157	2,272	2,535	1,193
Commercial real estate - owner occupied | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	645	170
Allowance for Credit Losses	0	0
Commercial real estate - owner occupied | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	645	170
Commercial real estate - owner occupied | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Commercial real estate - owner occupied | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	890,251	880,681
Allowance for Credit Losses	10,058	7,714	7,840	6,721
Commercial real estate - non-owner occupied | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	14,907	15,287
Allowance for Credit Losses	834	1,021
Commercial real estate - non-owner occupied | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	14,907	15,287
Commercial real estate - non-owner occupied | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Commercial real estate - non-owner occupied | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	345,991	363,983
Allowance for Credit Losses	5,545	5,998	7,574	4,223
Construction and land development | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	216	216
Allowance for Credit Losses	0	0
Construction and land development | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	216	216
Construction and land development | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Construction and land development | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Multi-family
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	421,573	417,923
Allowance for Credit Losses	3,845	3,837	2,151	1,472
Multi-family | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	316	315
Allowance for Credit Losses	0	0
Multi-family | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	316	315
Multi-family | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Multi-family | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
One-to-four family residential
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	485,948	491,508
Allowance for Credit Losses	4,846	5,204	4,165	1,759
One-to-four family residential | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	6,108	5,459
Allowance for Credit Losses	243	247
One-to-four family residential | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	6,108	5,459
One-to-four family residential | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
One-to-four family residential | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Agricultural and farmland
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	287,205	287,294
Allowance for Credit Losses	1,014	975	2,674	796
Agricultural and farmland | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	144	144
Allowance for Credit Losses	0	0
Agricultural and farmland | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	144	144
Agricultural and farmland | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Agricultural and farmland | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0	0
Municipal, consumer, and other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	217,821	239,386
Allowance for Credit Losses	8,120	9,068	$ 8,905	$ 5,890
Municipal, consumer, and other | Collateral Dependant
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	14,887	15,041
Allowance for Credit Losses	2,706	2,931
Municipal, consumer, and other | Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	14,817	14,978
Municipal, consumer, and other | Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	48	39
Municipal, consumer, and other | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	$ 22	$ 24

XML

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Past Due Status (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,345,962	$ 3,404,417
Total Nonaccrual	9,657	7,820
Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	3,330,137	3,393,717
30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	6,168	2,843
90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	37
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	402,206	427,800
Total Nonaccrual	1,170	272
Commercial and industrial | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	400,152	427,300
Commercial and industrial | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	884	228
Commercial and industrial | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	294,967	295,842
Total Nonaccrual	645	170
Commercial real estate - owner occupied | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	294,148	295,672
Commercial real estate - owner occupied | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	174	0
Commercial real estate - owner occupied | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	890,251	880,681
Total Nonaccrual	1,643	1,835
Commercial real estate - non-owner occupied | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	885,963	878,591
Commercial real estate - non-owner occupied | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	2,645	255
Commercial real estate - non-owner occupied | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	345,991	363,983
Total Nonaccrual	216	216
Construction and land development | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	345,775	363,735
Construction and land development | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	32
Construction and land development | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	421,573	417,923
Total Nonaccrual	316	315
Multi-family | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	421,142	417,597
Multi-family | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	115	11
Multi-family | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	485,948	491,508
Total Nonaccrual	5,454	4,804
One-to-four family residential | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	478,351	484,969
One-to-four family residential | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	2,143	1,735
One-to-four family residential | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	287,205	287,294
Total Nonaccrual	144	144
Agricultural and farmland | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	286,977	286,820
Agricultural and farmland | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	84	330
Agricultural and farmland | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	217,821	239,386
Total Nonaccrual	69	64
Municipal, consumer, and other | Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	217,629	239,033
Municipal, consumer, and other | 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	123	252
Municipal, consumer, and other | 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 0	$ 37

XML

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	$ 1,418	$ 538
Nonaccrual With No Allowance for Credit Losses	8,239	7,282
Total Nonaccrual	9,657	7,820
Commercial and industrial
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	1,057	120
Nonaccrual With No Allowance for Credit Losses	113	152
Total Nonaccrual	1,170	272
Commercial real estate - owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	645	170
Total Nonaccrual	645	170
Commercial real estate - non-owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	188
Nonaccrual With No Allowance for Credit Losses	1,643	1,647
Total Nonaccrual	1,643	1,835
Construction and land development
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	216	216
Nonaccrual With No Allowance for Credit Losses	0	0
Total Nonaccrual	216	216
Multi-family
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	316	315
Total Nonaccrual	316	315
One-to-four family residential
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	145	14
Nonaccrual With No Allowance for Credit Losses	5,309	4,790
Total Nonaccrual	5,454	4,804
Agricultural and farmland
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	144	144
Total Nonaccrual	144	144
Municipal, consumer, and other
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	69	64
Total Nonaccrual	$ 69	$ 64

XML

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,345,962	$ 3,404,417
Internal review threshold	750
Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	3,168,224	3,241,889
Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	109,282	98,206
Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	68,456	64,322
Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	402,206	427,800
Commercial and industrial | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	388,483	419,494
Commercial and industrial | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	8,882	7,128
Commercial and industrial | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	4,841	1,178
Commercial and industrial | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	294,967	295,842
Commercial real estate - owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	275,346	275,649
Commercial real estate - owner occupied | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	12,611	14,072
Commercial real estate - owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	7,010	6,121
Commercial real estate - owner occupied | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	890,251	880,681
Commercial real estate - non-owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	825,513	822,012
Commercial real estate - non-owner occupied | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	40,095	33,283
Commercial real estate - non-owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	24,643	25,386
Commercial real estate - non-owner occupied | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	345,991	363,983
Construction and land development | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	333,565	351,087
Construction and land development | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	12,154	12,604
Construction and land development | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	272	292
Construction and land development | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	421,573	417,923
Multi-family | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	401,541	397,951
Multi-family | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	19,716	19,656
Multi-family | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	316	316
Multi-family | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	485,948	491,508
One-to-four family residential | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	466,266	472,355
One-to-four family residential | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	7,000	6,671
One-to-four family residential | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	12,682	12,482
One-to-four family residential | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	287,205	287,294
Agricultural and farmland | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	276,427	280,867
Agricultural and farmland | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	7,092	3,071
Agricultural and farmland | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	3,686	3,356
Agricultural and farmland | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	217,821	239,386
Municipal, consumer, and other | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	201,083	222,474
Municipal, consumer, and other | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	1,732	1,721
Municipal, consumer, and other | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	15,006	15,191
Municipal, consumer, and other | Doubtful
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 0	$ 0

XML

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Loans risk-rated by origination year (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Term Loans by Origination Year
2024	$ 109,147	$ 710,341
2023	659,074	779,973
2022	757,844	649,375
2021	622,005	355,745
2020	349,080	198,968
Prior	429,258	252,747
Revolving Loans	400,389	438,298
Revolving Loans Converted to Term	19,165	18,970
Total	3,345,962	3,404,417
Pass
Term Loans by Origination Year
2024	107,309	679,058
2023	622,729	750,068
2022	729,961	631,765
2021	605,937	340,462
2020	333,880	188,459
Prior	376,828	216,516
Revolving Loans	378,223	422,824
Revolving Loans Converted to Term	13,357	12,737
Total	3,168,224	3,241,889
Pass-Watch
Term Loans by Origination Year
2024	1,406	13,504
2023	17,028	27,776
2022	25,809	14,493
2021	13,986	11,308
2020	11,334	6,890
Prior	19,582	6,120
Revolving Loans	17,717	15,079
Revolving Loans Converted to Term	2,420	3,036
Total	109,282	98,206
Substandard
Term Loans by Origination Year
2024	432	17,779
2023	19,317	2,129
2022	2,074	3,117
2021	2,082	3,975
2020	3,866	3,619
Prior	32,848	30,111
Revolving Loans	4,449	395
Revolving Loans Converted to Term	3,388	3,197
Total	68,456	64,322
Commercial and industrial
Term Loans by Origination Year
2024	17,320	93,067
2023	78,082	59,777
2022	57,146	20,502
2021	18,753	27,020
2020	24,757	6,022
Prior	34,852	30,021
Revolving Loans	166,584	188,858
Revolving Loans Converted to Term	4,712	2,533
Total	402,206	427,800
Commercial and industrial | Pass
Term Loans by Origination Year
2024	17,320	90,931
2023	73,281	58,364
2022	55,707	19,283
2021	17,771	26,816
2020	24,591	5,269
Prior	33,691	29,550
Revolving Loans	162,876	187,579
Revolving Loans Converted to Term	3,246	1,702
Total	388,483	419,494
Commercial and industrial | Pass-Watch
Term Loans by Origination Year
2024	0	2,025
2023	3,490	1,340
2022	1,374	892
2021	955	144
2020	124	753
Prior	1,161	471
Revolving Loans	766	956
Revolving Loans Converted to Term	1,012	547
Total	8,882	7,128
Commercial and industrial | Substandard
Term Loans by Origination Year
2024	0	111
2023	1,311	73
2022	65	327
2021	27	60
2020	42	0
Prior	0	0
Revolving Loans	2,942	323
Revolving Loans Converted to Term	454	284
Total	4,841	1,178
Commercial real estate - owner occupied
Term Loans by Origination Year
2024	7,920	34,311
2023	34,082	65,258
2022	64,096	62,136
2021	60,367	55,172
2020	53,585	34,206
Prior	60,117	31,210
Revolving Loans	14,733	13,549
Revolving Loans Converted to Term	67	0
Total	294,967	295,842
Commercial real estate - owner occupied | Pass
Term Loans by Origination Year
2024	7,568	27,516
2023	27,742	64,229
2022	63,093	55,376
2021	54,117	53,634
2020	52,110	32,469
Prior	57,399	28,876
Revolving Loans	13,250	13,549
Revolving Loans Converted to Term	67	0
Total	275,346	275,649
Commercial real estate - owner occupied | Pass-Watch
Term Loans by Origination Year
2024	352	4,061
2023	3,199	943
2022	919	5,210
2021	5,070	1,474
2020	1,414	1,573
Prior	1,657	811
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	12,611	14,072
Commercial real estate - owner occupied | Substandard
Term Loans by Origination Year
2024	0	2,734
2023	3,141	86
2022	84	1,550
2021	1,180	64
2020	61	164
Prior	1,061	1,523
Revolving Loans	1,483	0
Revolving Loans Converted to Term	0	0
Total	7,010	6,121
Commercial real estate - non-owner occupied
Term Loans by Origination Year
2024	11,210	135,722
2023	138,157	247,340
2022	253,803	245,252
2021	241,140	89,247
2020	87,686	88,734
Prior	132,891	48,572
Revolving Loans	23,426	23,859
Revolving Loans Converted to Term	1,938	1,955
Total	890,251	880,681
Commercial real estate - non-owner occupied | Pass
Term Loans by Origination Year
2024	11,210	121,536
2023	124,093	240,323
2022	246,855	237,953
2021	234,215	88,894
2020	87,338	82,094
Prior	110,263	39,228
Revolving Loans	9,840	10,274
Revolving Loans Converted to Term	1,699	1,710
Total	825,513	822,012
Commercial real estate - non-owner occupied | Pass-Watch
Term Loans by Origination Year
2024	0	810
2023	790	6,893
2022	6,824	7,013
2021	6,925	353
2020	348	4,230
Prior	11,383	154
Revolving Loans	13,586	13,585
Revolving Loans Converted to Term	239	245
Total	40,095	33,283
Commercial real estate - non-owner occupied | Substandard
Term Loans by Origination Year
2024	0	13,376
2023	13,274	124
2022	124	286
2021	0	0
2020	0	2,410
Prior	11,245	9,190
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	24,643	25,386
Construction and land development
Term Loans by Origination Year
2024	25,957	153,652
2023	135,776	129,971
2022	115,825	56,954
2021	42,022	5,596
2020	9,070	2,662
Prior	3,245	872
Revolving Loans	12,998	12,213
Revolving Loans Converted to Term	1,098	2,063
Total	345,991	363,983
Construction and land development | Pass
Term Loans by Origination Year
2024	25,805	153,499
2023	133,857	119,005
2022	107,186	56,954
2021	42,022	5,596
2020	9,070	2,662
Prior	3,170	796
Revolving Loans	12,194	12,050
Revolving Loans Converted to Term	261	525
Total	333,565	351,087
Construction and land development | Pass-Watch
Term Loans by Origination Year
2024	152	153
2023	1,919	10,750
2022	8,423	0
2021	0	0
2020	0	0
Prior	19	0
Revolving Loans	804	163
Revolving Loans Converted to Term	837	1,538
Total	12,154	12,604
Construction and land development | Substandard
Term Loans by Origination Year
2024	0	0
2023	0	216
2022	216	0
2021	0	0
2020	0	0
Prior	56	76
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	272	292
Multi-family
Term Loans by Origination Year
2024	5,442	87,009
2023	86,319	88,704
2022	88,736	115,718
2021	117,597	61,947
2020	61,370	34,104
Prior	56,728	24,038
Revolving Loans	4,893	5,904
Revolving Loans Converted to Term	488	499
Total	421,573	417,923
Multi-family | Pass
Term Loans by Origination Year
2024	5,042	83,898
2023	83,616	81,507
2022	81,575	115,402
2021	117,281	53,126
2020	52,554	34,053
Prior	56,099	23,570
Revolving Loans	4,893	5,904
Revolving Loans Converted to Term	481	491
Total	401,541	397,951
Multi-family | Pass-Watch
Term Loans by Origination Year
2024	400	3,111
2023	2,703	7,197
2022	7,161	0
2021	0	8,821
2020	8,816	51
Prior	629	468
Revolving Loans	0	0
Revolving Loans Converted to Term	7	8
Total	19,716	19,656
Multi-family | Substandard
Term Loans by Origination Year
2024	0	0
2023	0	0
2022	0	316
2021	316	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	316	316
One-to-four family residential
Term Loans by Origination Year
2024	15,109	109,226
2023	102,189	93,449
2022	92,200	83,852
2021	80,178	65,226
2020	63,961	23,235
Prior	69,011	50,211
Revolving Loans	54,061	57,515
Revolving Loans Converted to Term	9,239	8,794
Total	485,948	491,508
One-to-four family residential | Pass
Term Loans by Origination Year
2024	14,674	105,337
2023	98,623	91,636
2022	90,394	82,289
2021	78,700	64,094
2020	62,792	21,986
Prior	61,198	44,241
Revolving Loans	53,859	57,248
Revolving Loans Converted to Term	6,026	5,524
Total	466,266	472,355
One-to-four family residential | Pass-Watch
Term Loans by Origination Year
2024	365	2,382
2023	2,039	286
2022	283	940
2021	931	486
2020	605	212
Prior	2,296	1,804
Revolving Loans	202	203
Revolving Loans Converted to Term	279	358
Total	7,000	6,671
One-to-four family residential | Substandard
Term Loans by Origination Year
2024	70	1,507
2023	1,527	1,527
2022	1,523	623
2021	547	646
2020	564	1,037
Prior	5,517	4,166
Revolving Loans	0	64
Revolving Loans Converted to Term	2,934	2,912
Total	12,682	12,482
Agricultural and farmland
Term Loans by Origination Year
2024	17,977	53,719
2023	46,173	37,961
2022	36,294	37,042
2021	34,314	37,189
2020	35,161	8,981
Prior	13,302	8,619
Revolving Loans	102,361	100,658
Revolving Loans Converted to Term	1,623	3,125
Total	287,205	287,294
Agricultural and farmland | Pass
Term Loans by Origination Year
2024	17,509	52,766
2023	43,295	37,600
2022	35,500	36,604
2021	34,208	33,960
2020	31,935	8,910
Prior	12,397	7,756
Revolving Loans	100,006	100,486
Revolving Loans Converted to Term	1,577	2,785
Total	276,427	280,867
Agricultural and farmland | Pass-Watch
Term Loans by Origination Year
2024	137	953
2023	2,878	361
2022	794	425
2021	94	30
2020	27	71
Prior	761	719
Revolving Loans	2,355	172
Revolving Loans Converted to Term	46	340
Total	7,092	3,071
Agricultural and farmland | Substandard
Term Loans by Origination Year
2024	331	0
2023	0	0
2022	0	13
2021	12	3,199
2020	3,199	0
Prior	144	144
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	3,686	3,356
Municipal, consumer, and other
Term Loans by Origination Year
2024	8,212	43,635
2023	38,296	57,513
2022	49,744	27,919
2021	27,634	14,348
2020	13,490	1,024
Prior	59,112	59,204
Revolving Loans	21,333	35,742
Revolving Loans Converted to Term	0	1
Total	217,821	239,386
Municipal, consumer, and other | Pass
Term Loans by Origination Year
2024	8,181	43,575
2023	38,222	57,404
2022	49,651	27,904
2021	27,623	14,342
2020	13,490	1,016
Prior	42,611	42,499
Revolving Loans	21,305	35,734
Revolving Loans Converted to Term	0	0
Total	201,083	222,474
Municipal, consumer, and other | Pass-Watch
Term Loans by Origination Year
2024	0	9
2023	10	6
2022	31	13
2021	11	0
2020	0	0
Prior	1,676	1,693
Revolving Loans	4	0
Revolving Loans Converted to Term	0	0
Total	1,732	1,721
Municipal, consumer, and other | Substandard
Term Loans by Origination Year
2024	31	51
2023	64	103
2022	62	2
2021	0	6
2020	0	8
Prior	14,825	15,012
Revolving Loans	24	8
Revolving Loans Converted to Term	0	1
Total	$ 15,006	$ 15,191

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Modifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Credit Loss [Abstract]
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount	$ 0	$ 0

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Pledged Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 3,305,147	$ 3,364,369
Pledged assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 1,850,000	$ 1,200,000

XML

LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	$ 19,001
Ending balance	19,081
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Mortgage loans serviced for others	1,640,000		$ 1,660,000
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	19,001	$ 10,147
Acquired	0	10,469
Capitalized servicing rights	130	129
Fair value adjustments attributable to payments and principal reductions	(429)	(431)
Fair value adjustments attributable to changes in valuation inputs and assumptions	379	(322)
Ending balance	$ 19,081	$ 19,992

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FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Real Estate Acquired Through Foreclosure [Roll Forward]
Beginning balance	$ 852	$ 3,030
Acquired	0	271
Transfers from loans	203	105
Proceeds from sales	(865)	(40)
Net gain on sales	113	20
Direct write-downs	(26)	(30)
Ending balance	$ 277	$ 3,356

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FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]
Direct write-downs	$ (26)	$ (30)
Net gain on sales	113	20
Gains (losses) on foreclosed assets	$ 87	$ (10)

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FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) loan	Mar. 31, 2023 USD ($) loan	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 277	$ 3,356	$ 852	$ 3,030
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 100		100
Number of loans in the process of foreclosure | loan	20	16
Loan amount in the process of foreclosure	$ 2,000		$ 1,200

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DEPOSITS - Interest bearing Deposits, Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
DEPOSITS
Noninterest-bearing	$ 1,047,074	$ 1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,139,172	1,145,092
Money market	802,685	803,381
Savings	602,739	608,424
Time	713,142	627,253
Brokered	55,762	144,880
Total interest-bearing deposits	3,313,500	3,329,030
Total deposits	$ 4,360,574	$ 4,401,437

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DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Deposits [Abstract]
Reciprocal transaction deposits, Interest bearing demand deposits	$ 244,100	$ 236,800
Time deposits, at or above FDIC insurance limit	171,400	130,200
Time deposits in denominations of $100,000 or more	$ 406,400	$ 342,800

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DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Deposits [Abstract]
Interest-bearing demand	$ 1,311	$ 458
Money market	4,797	935
Savings	443	178
Time	5,925	803
Brokered	1,117	0
Total interest expense on deposits	$ 13,593	$ 2,374

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DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated as Hedging Instrument - Interest Rate Swap - Cash Flow Hedging - Other Assets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 17,000	$ 17,000
Fair value recorded in other assets	$ 254	$ 322

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DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash pledged	$ 0.4	$ 0.6

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DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flow Hedging | Interest Expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)	$ 132	$ 94

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DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Assets
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 93,199	$ 94,497
Derivative financial assets	7,507	6,227
Other Assets | Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	0	0
Derivative financial assets	0	0
Other Assets | Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	93,199	94,497
Derivative financial assets	7,507	6,227
Other Liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	93,199	94,497
Derivative financial liabilities fair value	(7,507)	(6,227)
Other Liabilities | Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	93,199	94,497
Derivative financial liabilities fair value	(7,507)	(6,227)
Other Liabilities | Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	0	0
Derivative financial liabilities fair value	$ 0	$ 0

XML

DERIVATIVE FINANCIAL INSTRUMENTS- Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses)	$ 0	$ 0
Interest Rate Swap | Not Designated as Hedging Instrument
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Gross gains	$ 2,038	$ 2,737
Gross losses	$ (2,038)	$ (2,737)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 489,496	$ 373,632
Other comprehensive income (loss) before reclassifications	(2,191)	11,403
Reclassifications	3,751	2,003
Other comprehensive income (loss), before tax	1,560	13,406
Income tax expense (benefit)	445	3,822
Other comprehensive income (loss), after tax	1,115	9,584
Ending balance	496,681	450,098
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(57,163)	(71,759)
Other comprehensive income (loss), after tax	1,115	9,584
Ending balance	(56,048)	(62,175)
Available-for-Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(48,579)	(61,998)
Other comprehensive income (loss) before reclassifications	(2,255)	11,443
Reclassifications	3,382	1,607
Other comprehensive income (loss), before tax	1,127	13,050
Income tax expense (benefit)	322	3,720
Other comprehensive income (loss), after tax	805	9,330
Ending balance	(47,774)	(52,668)
Held-to-Maturity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(8,549)	(9,946)
Other comprehensive income (loss) before reclassifications	0	0
Reclassifications	501	490
Other comprehensive income (loss), before tax	501	490
Income tax expense (benefit)	143	140
Other comprehensive income (loss), after tax	358	350
Ending balance	(8,191)	(9,596)
Derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(35)	185
Other comprehensive income (loss) before reclassifications	64	(40)
Reclassifications	(132)	(94)
Other comprehensive income (loss), before tax	(68)	(134)
Income tax expense (benefit)	(20)	(38)
Other comprehensive income (loss), after tax	(48)	(96)
Ending balance	$ (83)	$ 89

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EARNINGS PER SHARE - computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 15,258	$ 9,208
Earnings allocated to participating securities	0	(5)
Numerator for earnings per share - basic	15,258	9,203
Numerator for earnings per share - diluted	$ 15,258	$ 9,203
Denominator:
Weighted average shares of common stock outstanding (in shares)	31,662,954	30,977,204
Dilutive effect of outstanding restricted stock units (in shares)	140,233	69,947
Weighted average common shares outstanding, including all dilutive potential shares (in shares)	31,803,187	31,047,151
Earnings per share, basic (in dollars per share)	$ 0.48	$ 0.30
Earnings per share, diluted (in dollars per share)	$ 0.48	$ 0.30

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STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Number of shares participant is entitled to receive (in shares)	1
Fair value of units granted	$ 1,000	$ 1,000
Intrinsic value of restricted stock units	1,400	1,100
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 1,700
Weighted average remaining service period	1 year 10 months 24 days
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Intrinsic value of restricted stock units	$ 800
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 600
Weighted average remaining service period	1 year 8 months 12 days
Performance restricted stock units | Share-Based Payment Arrangement, Employee
STOCK-BASED COMPENSATION PLANS
Fair value of units granted	$ 400	$ 400
Performance restricted stock units | Minimum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned	0.00%
Performance restricted stock units | Maximum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned	150.00%
Stock appreciation rights
STOCK-BASED COMPENSATION PLANS
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 0
Stock appreciation rights plan liability recorded for the outstanding units	$ 400		$ 600
Stock appreciation rights plan liability recorded for the previously exercised units			$ 200
Weighted average remaining contractual term	5 years 1 month 6 days
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares (in shares)	1,820,000

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STOCK-BASED COMPENSATION PLANS - Summary of stock-based compensation expense (benefit) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 380	$ 518
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	273	277
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	236	240
Total awards classified as equity
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	509	517
Stock appreciation rights
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ (129)	$ 1

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STOCK-BASED COMPENSATION PLANS - Summary of equity award activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation plans
Adjustment for performance condition (in shares)	14,349	0
Expirations (in shares)	0	0
Weighted Average Grant Date Assigned Value
Expired (in dollars per share)	$ 0	$ 0
Adjustment for performance condition (in dollars per share)	$ 15.53	$ 0
Restricted stock units
Stock-based compensation plans
Outstanding (in shares)	128,159	139,986
Granted (in shares)	51,246	41,847
Exercised (in shares)	(70,540)	(51,693)
Forfeited (in shares)	0	(718)
Outstanding (in shares)	108,865	129,422
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 19.56	$ 18.01
Granted (in dollars per share)	19.06	22.72
Exercised (in dollars per share)	18.96	17.91
Forfeited (in dollars per share)	0	16.58
Outstanding (in dollars per share)	$ 19.71	$ 19.58
Performance restricted stock units
Stock-based compensation plans
Outstanding (in shares)	79,097	62,067
Granted (in shares)	19,933	17,030
Vested (in shares)	(43,046)	0
Forfeited (in shares)	0	0
Outstanding (in shares)	70,333	79,097
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 18.25	$ 17.02
Granted (in dollars per share)	19.06	22.72
Vested (in dollars per share)	15.53	0
Forfeited (in dollars per share)	0	0
Outstanding (in dollars per share)	$ 19.59	$ 18.25
Stock appreciation rights
Stock-based compensation plans
Outstanding (in shares)	73,440	73,440
Granted (in shares)	0	0
Exercised (in shares)	0	0
Forfeited (in shares)	0	0
Outstanding (in shares)	73,440	73,440
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 16.32	$ 16.32
Granted (in dollars per share)	0	0
Exercised (in dollars per share)	0	0
Forfeited (in dollars per share)	0	0
Outstanding (in dollars per share)	$ 16.32	$ 16.32
Weighted average remaining contractual term	5 years 1 month 6 days

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STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock appreciation rights	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
STOCK-BASED COMPENSATION PLANS
Risk-free interest rate	4.21%	3.85%
Expected volatility	37.35%	37.37%
Expected life (in years)	5 years 4 months 24 days	5 years 8 months 12 days
Expected dividend yield	3.99%	3.22%

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REGULATORY MATTERS - (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Total Capital (to Risk Weighted Assets)
For capital adequacy purposes, ratio (as a percent).	0.025	0.025
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 597,680	$ 586,604
Actual, ratio (as a percent)	0.1545	0.1492
For capital adequacy purposes, amount	$ 309,434	$ 314,496
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
To be well capitalized under prompt corrective action provisions, amount	$ 386,792	$ 393,119
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.1000	0.1000
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 558,704	$ 550,808
Actual, ratio (as a percent)	0.1444	0.1401
For capital adequacy purposes, amount	$ 232,075	$ 235,872
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
To be well capitalized under prompt corrective action provisions, amount	$ 309,434	$ 314,496
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.0800	0.0800
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Actual, amount	$ 558,704	$ 550,808
Actual, ratio (as a percent)	14.44%	14.01%
For capital adequacy purposes, amount	$ 174,056	$ 176,904
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
To be well capitalized under prompt corrective action provisions, amount	$ 251,415	$ 255,528
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets)
Actual, amount	$ 558,704	$ 550,808
Actual, ratio (as a percent)	0.1117	0.1096
For capital adequacy purposes, amount	$ 199,999	$ 201,063
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400
To be well capitalized under prompt corrective action provisions, amount	$ 249,999	$ 251,329
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.0500	0.0500
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 611,371	$ 603,234
Actual, ratio (as a percent)	0.1579	0.1533
For capital adequacy purposes, amount	$ 309,672	$ 314,814
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 532,901	$ 527,964
Actual, ratio (as a percent)	0.1377	0.1342
For capital adequacy purposes, amount	$ 232,254	$ 236,110
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Actual, amount	$ 481,711	$ 476,789
Actual, ratio (as a percent)	12.44%	12.12%
For capital adequacy purposes, amount	$ 174,190	$ 177,083
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets)
Actual, amount	$ 532,901	$ 527,964
Actual, ratio (as a percent)	0.1065	0.1049
For capital adequacy purposes, amount	$ 200,131	$ 201,231
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	$ 669,020	$ 759,461
Equity securities with readily determinable fair values	3,324	3,360
Mortgage servicing rights, at fair value	19,081	19,001
U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	138,186	148,622
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,459	52,097
Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	134,648	205,557
Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	168,546	173,984
Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,475	127,012
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	52,706	52,189
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,324	3,360
Mortgage servicing rights, at fair value	19,081	19,001
Derivative financial assets	7,761	6,549
Derivative financial liabilities	7,507	6,227
Fair Value, Recurring | U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	138,186	148,622
Fair Value, Recurring | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,459	52,097
Fair Value, Recurring | Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	134,648	205,557
Fair Value, Recurring | Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	168,546	173,984
Fair Value, Recurring | Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,475	127,012
Fair Value, Recurring | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	52,706	52,189
Fair Value, Recurring | Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,324	3,360
Mortgage servicing rights, at fair value	0	0
Derivative financial assets	0	0
Derivative financial liabilities	0	0
Fair Value, Recurring | Level 1 | U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	138,186	148,622
Fair Value, Recurring | Level 1 | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 1 | Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 1 | Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 1 | Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 1 | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	0	0
Mortgage servicing rights, at fair value	0	0
Derivative financial assets	7,761	6,549
Derivative financial liabilities	7,507	6,227
Fair Value, Recurring | Level 2 | U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 2 | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,459	52,097
Fair Value, Recurring | Level 2 | Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	134,648	205,557
Fair Value, Recurring | Level 2 | Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	168,546	173,984
Fair Value, Recurring | Level 2 | Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,475	127,012
Fair Value, Recurring | Level 2 | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	52,706	52,189
Fair Value, Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	0	0
Mortgage servicing rights, at fair value	19,081	19,001
Derivative financial assets	0	0
Derivative financial liabilities	0	0
Fair Value, Recurring | Level 3 | U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 3 | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 3 | Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 3 | Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 3 | Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring | Level 3 | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	$ 0	$ 0

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 19,081	$ 19,001
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	19,081	19,001
Fair Value, Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 19,081	$ 19,001
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.064	0.062
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.597	0.494
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.086	0.084
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.090	0.090
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.550	0.373
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.098	0.096

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 3,345,962	$ 3,404,417
Foreclosed assets	277	852
Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	38,393	36,904
Fair Value, Nonrecurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	3,479	2,318
Bank premises held for sale	317
Foreclosed assets	277	852
Fair Value, Nonrecurring | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	34,262	32,685
Fair Value, Nonrecurring | Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Bank premises held for sale	0
Foreclosed assets	0	0
Fair Value, Nonrecurring | Level 1 | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	0	0
Fair Value, Nonrecurring | Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	3,479	2,318
Bank premises held for sale	0
Foreclosed assets	0	0
Fair Value, Nonrecurring | Level 2 | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	0	0
Fair Value, Nonrecurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Bank premises held for sale	317
Foreclosed assets	277	852
Fair Value, Nonrecurring | Level 3 | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 34,262	$ 32,685

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 3,345,962	$ 3,404,417
Foreclosed assets	277	852
Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	38,393	36,904
Fair Value, Nonrecurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale	317
Foreclosed assets	277	852
Fair Value, Nonrecurring | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	34,262	32,685
Fair Value, Nonrecurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale	317
Foreclosed assets	$ 277	$ 852
Fair Value, Nonrecurring | Level 3 | Appraisal adjustments
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale, measurement input	0.07
Foreclosed assets, measurement input	0.07	0.07
Fair Value, Nonrecurring | Level 3 | Collateral Dependant
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 34,262	$ 32,685
Fair Value, Nonrecurring | Level 3 | Weighted Average | Appraisal adjustments
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale, measurement input	0.07
Foreclosed assets, measurement input	0.07	0.07

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
Debt securities held-to-maturity	$ 458,640	$ 466,496
Financial liabilities:
FHLB advances	12,725	12,623
Level 1 | Carrying Amount
Financial assets:
Cash and cash equivalents	260,212	141,252
Level 1 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	260,212	141,252
Level 2 | Carrying Amount
Financial assets:
Debt securities held-to-maturity	517,472	521,439
Accrued interest receivable	23,117	24,534
Financial liabilities:
Securities sold under agreements to repurchase	31,864	42,442
Accrued interest payable	6,316	6,969
Level 2 | Estimated Fair Value
Financial assets:
Debt securities held-to-maturity	458,640	466,496
Accrued interest receivable	23,117	24,534
Financial liabilities:
Securities sold under agreements to repurchase	31,864	42,442
Accrued interest payable	6,316	6,969
Level 3 | Carrying Amount
Financial assets:
Restricted stock	5,155	7,160
Loans, net	3,305,147	3,364,369
Investments in unconsolidated subsidiaries	1,614	1,614
Financial liabilities:
Time deposits	713,142	627,253
Brokered time deposits	55,762	144,880
FHLB advances	12,725	12,623
Level 3 | Estimated Fair Value
Financial assets:
Restricted stock	5,155	7,160
Loans, net	3,272,226	3,349,540
Investments in unconsolidated subsidiaries	1,614	1,614
Financial liabilities:
Time deposits	705,385	619,682
Brokered time deposits	55,782	144,944
FHLB advances	12,524	12,621
Subordinated notes | Level 3 | Carrying Amount
Financial liabilities:
Subordinated notes	39,494	39,474
Subordinated notes | Level 3 | Estimated Fair Value
Financial liabilities:
Subordinated notes	37,031	36,993
Junior subordinated debentures | Level 3 | Carrying Amount
Financial liabilities:
Subordinated notes	52,804	52,789
Junior subordinated debentures | Level 3 | Estimated Fair Value
Financial liabilities:
Subordinated notes	$ 48,682	$ 48,529

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES
Off-Balance-Sheet, Credit Loss, Liability	$ 3,800	$ 3,800
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	24,753	23,732
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 894,571	$ 869,013

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COMMITMENTS AND CONTINGENCIES - Legal Contingencies (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 29, 2024	May 15, 2023	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
DeBaere and Miller cases
Litigation
Settlement amount		$ 3,400
Accrual included in other noninterest expense					$ 800	$ 2,600
John Pickett Cases
Litigation
Settlement amount	$ 300
Accrual included in other noninterest expense			$ 100	$ 200
Accrual recorded			$ 300	$ 200

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]