third quarter of 2026
Filed Oct 26, 2026HBT Financial, Inc. announces third quarter 2026 financial results
Third-quarter net income rose to $31.4 million from $27.8 million in the second quarter and $19.8 million in the third quarter of 2025, supported by higher net interest income, a wider net interest margin, higher noninterest income, net recoveries, and controlled expenses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $31.4M | – | – |
| Diluted earnings per shareGAAP | $0.86 per diluted share | – | – |
| Adjusted net incomenon-GAAP | $31.4M | an increase of 10.1% over the prior quarter | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.86 adjusted diluted earnings per share | – | – |
| Net interest incomeGAAP | $70.3M | increased 1.8% | increased 40.7% |
| Net interest incomeGAAP | $195.8M | – | – |
| Net interest income (tax-equivalent basis)non-GAAP | $71.19M | – | – |
| Net interest marginGAAP | 4.35% | increased 3 basis points | increased 22 basis points |
| Net interest margin (tax-equivalent basis)non-GAAP | 4.40% | increased 2 basis points | increased 22 basis points |
| Noninterest incomeGAAP | $14.2M | a 20.2% increase | increased 44.6% |
| Noninterest expenseGAAP | $42.7M | a 0.5% increase | increased 31.2% |
| Noninterest expense excluding acquisition-related expensesother | $41.7M | a $0.5 million decrease | – |
| Provision for credit lossesGAAP | −$600K | – | – |
| Return on average assetsGAAP | 1.85% | – | – |
| Return on average stockholders' equityGAAP | 16.17% | – | – |
| Return on average tangible common equitynon-GAAP | 19.27% | – | – |
| Efficiency ratioGAAP | 48.73% | – | – |
| Efficiency ratio (tax-equivalent basis)non-GAAP | 48.24% | – | – |
| Total loans outstanding, before allowance for credit lossesother | $4.78B | $30.3 million increase | – |
| Total depositsother | $5.75B | $5.6 million decrease | – |
| Total assetsother | $6.7B | – | – |
| Nonperforming assetsother | $10.8M | $0.9 million increase | – |
| Nonperforming assets to total assetsother | 0.16% | – | – |
| Net charge-offs (recoveries) to average loansother | (0.04)% | – | – |
| Allowance for credit losses to loans, before allowance for credit lossesother | 1.26% | – | – |
| Common equity tier 1 capital ratioother | 12.94% | – | – |
| Total capital to risk-weighted assetsother | 16.48% | – | – |
| Tangible common equity to tangible assetsnon-GAAP | 9.56% | – | – |
| Tangible book value per sharenon-GAAP | $17.34 | decreased by $0.26 | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter of 2026, the Company did not repurchase shares of its common stock under its stock repurchase program.
- The Company’s Board of Directors has authorized the repurchase of up to $30.0 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2027.
- As of September 30, 2026, the Company had $14.0 million remaining under the stock repurchase program.
- The Company is currently subject to a blackout period restricting repurchases of its common stock, which will remain in effect until the conclusion of the TYFG stockholder vote on the proposed merger scheduled for October 29, 2026.
What drove it
- Higher yields on loans and higher average loan balances supported net interest income.
- A $0.5 million increase in loan fees and a $0.2 million increase in nonaccrual interest recoveries contributed to the sequential increase in net interest income.
- Loans yield increased 5 basis points to 6.43%.
- Net interest income growth relative to the third quarter of 2025 reflected higher average interest-earning asset balances following the CNB merger, improved debt securities and loan yields, and a more favorable interest-earning asset mix.
- Third-quarter noninterest income included a $1.5 million positive mortgage servicing rights fair value adjustment, compared with an $0.8 million negative adjustment in the second quarter.
- Other noninterest income included a $0.4 million nonrecurring refund of stock repurchase excise tax.
- Noninterest income also benefited from wealth management, seasonally higher mortgage income, and a larger customer base following the CNB merger.
- The negative provision for credit losses primarily reflected a $1.9 million decrease in required reserves driven by changes within the portfolio, including net recoveries of $0.5 million.
Concerns
- Acquisition-related noninterest expenses totaled $1.0 million during the third quarter of 2026, compared with $0.3 million during the second quarter of 2026.
- Funding costs increased 4 basis points to 1.36%, driven primarily by increases in benchmark interest rates.
- Acquired loan discount accretion decreased $0.8 million sequentially and totaled $1.3 million for the third quarter of 2026.
- Nonperforming assets increased to $10.8 million from $9.9 million at June 30, 2026, primarily due to higher nonaccrual loan balances in the one-to-four family residential category.
- Tangible book value per share decreased by $0.26 to $17.34, primarily due to higher net unrealized losses on available-for-sale debt securities as market interest rates increased during the quarter.
- The Tri-County acquisition remains subject to stockholder approval and regulatory approvals.
What to watch
- The expected early first-quarter 2027 closing of the Tri-County Financial Group, Inc. acquisition, subject to stockholder approval and regulatory approvals.
- The effect of higher funding costs, lower acquired loan discount accretion, and loan repricing on net interest margin.
- Deposit trends after total deposits decreased $5.6 million from June 30, 2026, despite $60.0 million of wealth management customer reciprocal deposits moving on-balance sheet.
- Nonperforming asset trends, particularly the one-to-four family residential category.
- The effect of accumulated other comprehensive income losses and market interest rates on tangible book value per share.
- The conclusion of the repurchase blackout period following the TYFG stockholder vote scheduled for October 29, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $126,260 at September 30, 2026, compared with $132,250 at June 30, 2026 and $155,133 at September 30, 2025.
- Total assets were $6,719,327 at September 30, 2026, compared with $6,727,646 at June 30, 2026 and $5,035,027 at September 30, 2025.
- Total deposits were $5,752,432 at September 30, 2026, compared with $5,757,986 at June 30, 2026 and $4,347,187 at September 30, 2025.
- Federal Home Loan Bank advances were $12,210; subordinated notes were $84,051; and junior subordinated debentures issued to capital trusts were $52,953 at September 30, 2026.
- Total stockholders’ equity was $754,091 at September 30, 2026, compared with $764,733 at June 30, 2026.
- Accumulated other comprehensive income (loss) was $(62,949) at September 30, 2026, compared with $(29,527) at June 30, 2026.
Analysis
HBT reported third-quarter GAAP net income of $31.4 million, or $0.86 per diluted share, compared with $27.8 million, or $0.76 per diluted share, in the second quarter and $19.8 million, or $0.63 per diluted share, in the third quarter of 2025. Adjusted net income was also $31.4 million, and adjusted diluted earnings per share was $0.86. Annualized profitability improved sequentially, with ROAA at 1.85%, ROAE at 16.17%, and ROATCE at 19.27%.
Net interest income was $70.3 million, up 1.8% from $69.1 million in the second quarter and 40.7% from $50.0 million a year earlier. The reported net interest margin increased 3 basis points sequentially to 4.35%, while tax-equivalent net interest margin increased 2 basis points to 4.40%. Management attributed the margin improvement to loan repricing and higher reinvestment rates on securities cash flows, partly offset by a 4-basis-point increase in funding costs to 1.36% and lower acquired loan discount accretion.
Noninterest income rose 20.2% sequentially to $14.2 million. The largest identified swing was mortgage servicing rights fair value adjustment income of $1.5 million, compared with a negative $0.8 million adjustment in the prior quarter. Results also included a $0.4 million nonrecurring excise-tax refund. Expenses were broadly stable, as total noninterest expense increased 0.5% to $42.7 million, while expense excluding acquisition-related costs fell $0.5 million to $41.7 million. The tax-equivalent efficiency ratio improved to 48.24% from 50.14%.
Balance-sheet growth was limited sequentially. Loans increased $30.3 million to $4.78 billion, led by construction and land development fundings and draws, while deposits decreased $5.6 million to $5.75 billion. Asset quality remained low by the reported ratios, although nonperforming assets increased to $10.8 million, or 0.16% of total assets, from $9.9 million. The company recorded a negative provision for credit losses of $0.6 million and net recoveries of $0.5 million. Regulatory capital ratios increased during the quarter, including a 12.94% common equity tier 1 capital ratio and a 16.48% total capital to risk-weighted assets ratio.
The company made no third-quarter repurchases because of a blackout period connected to the proposed Tri-County transaction. It had $14.0 million remaining under its $30.0 million repurchase authorization at September 30, 2026. Tangible book value per share decreased by $0.26 to $17.34 as higher market interest rates increased net unrealized losses on available-for-sale securities. HBT expects the Tri-County transaction to close early in the first quarter of 2027, subject to stockholder approval and regulatory approvals.
Management, verbatim
Our third quarter results were very strong with adjusted net income (1) of $31.4 million, or $0.86 per diluted share, an increase of 10.1% over the prior quarter.
J. Lance Carter, President and Chief Executive Officer of HBT Financial
Asset quality also remains exceptional, with nonperforming assets to total assets of 0.16%, and net recoveries to average loans of 0.04%, on an annualized basis, during the quarter.
J. Lance Carter, President and Chief Executive Officer of HBT Financial
Integration planning for the acquisition of Tri-County Financial Group, Inc. is progressing well, and we anticipate this transaction closing early in the first quarter of 2027, subject to their stockholder approval and regulatory approvals.
J. Lance Carter, President and Chief Executive Officer of HBT Financial
Not in the filing
stated, not guessed- Revenue is not reported as a company metric because HBT is a bank; no total revenue line is provided.
- Gross margin is not reported.
- Operating income is not reported.
- Tax rate is not reported.
- Operating cash flow is not reported.
- Free cash flow is not reported.
- Dividend declaration or payment is not reported.
- Forward financial guidance is not reported.
- Prior outlook was not provided, so no comparison with prior guidance is available.
- Reportable operating segments and segment revenue are not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.