HBT Financial posts $31.4 million net income for third quarter 2026

Bloomington, IL, October 26. HBT Financial, Inc. (NASDAQ: HBT) reported net income of $31.4 million, or $0.86 per diluted share, for the third quarter of 2026. The holding company for Heartland Bank and Trust Company stated that this figure compares to $27.8 million, or $0.76 per diluted share, for the second quarter of 2026, and $19.8 million, or $0.63 per diluted share, for the third quarter of 2025.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, cited strong profitability with an adjusted return on average assets of 1.85% and an adjusted return on average tangible common equity of 19.29%. He noted that the net interest margin on a tax-equivalent basis reached 4.40%, an increase of 2 basis points from the prior quarter. Carter attributed this shift to maturing fixed-rate loans repricing higher and securities cash flows being reinvested at higher rates, which slightly offset a higher cost of funds and lower loan accretion income.

Noninterest income exceeded expectations due to wealth management performance, seasonally higher mortgage income, and a nonrecurring $0.4 million excise tax refund. The company maintained an efficiency ratio on a tax-equivalent basis of 48.24%. Asset quality metrics showed nonperforming assets to total assets at 0.16% and net recoveries to average loans at 0.04% on an annualized basis.

Regulatory capital ratios increased during the quarter, including a common equity tier 1 capital ratio of 12.94% and a total capital to risk-weighted assets ratio of 16.48%. HBT Financial announced that integration planning for its pending acquisition of Tri-County Financial Group, Inc. is progressing well. The transaction, signed on August 10, 2026, is expected to close early in the first quarter of 2027, subject to stockholder and regulatory approvals.

Net interest income for the third quarter of 2026 was $70.3 million, a 1.8% increase from $69.1 million in the second quarter of 2026. This rise was driven by higher yields on loans and higher average loan balances, along with a $0.5 million increase in loan fees and a $0.2 million increase in nonaccrual interest recoveries. These gains were partially offset by an $0.8 million decrease in acquired loan discount accretion and higher funding costs.

Compared to the third quarter of 2025, net interest income increased 40.7% from $50.0 million. The year-over-year growth resulted from higher average interest-earning asset balances following the CNB Bank Shares merger and improved yields on debt securities and loans. Additional contributions included a $0.4 million rise in acquired loan discount accretion, loan fees, and nonaccrual interest recoveries.

The net interest margin stood at 4.35% for the third quarter of 2026, up from 4.32% in the second quarter of 2026. On a tax-equivalent basis, the margin was 4.40%, compared to 4.38% in the prior quarter. Loan yields increased by 5 basis points to 6.43%, while funding costs rose by 4 basis points to 1.36% due to increases in benchmark interest rates.

Year-over-year, the net interest margin increased by 22 basis points from 4.13% in the third quarter of 2025, and the tax-equivalent margin increased by 22 basis points from 4.18%. These improvements were primarily attributable to better yields on debt securities and loans and a more favorable interest-earning asset mix, partially offset by higher funding costs.