Financial Analysis

BUSINESS COMBINATIONS CNB Bank Shares, Inc. On March 1, 2026, HBT Financial acquired 100% of the issued and outstanding common stock of CNB Bank Shares, Inc. (CNB), the holding company for CNB Bank & Trust, N.A. (CNB Bank), pursuant to an Agreement and Plan of Merger dated October 20, 2025. Under the Agreement and Plan of Merger, CNB merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of CNB Bank with and into Heartland Bank, with Heartland Bank as the surviving entity. At the effective time of the merger, each share of CNB 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) 1.0434 shares of HBT Financial's common stock, or (ii) $27.73 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of approximately 5.5 million shares of HBT Financial's common stock and approximately $34 million in cash. In lieu of fractional shares, holders of CNB common stock received cash. Based upon the closing price of HBT Financial common stock of $26.96 on February 27, 2026, the aggregate transaction value was approximately $182 million. This transaction will be accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Fair value assessme …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Profit Sharing Plan During the years ended December 31, 2025, 2024, and 2023, the Companys profit sharing plan contribution expense amounted to $1.9 million, $1.8 million, and $1.7 million, respectively. The Companys contributions vest to employees ratably over a six-year period. Medical Insurance Benefits The Company is partially self-insured for medical claims filed by its employees. During the years ended December 31, 2025, 2024, and 2023, medical benefits expense amounted to $9.4 million, $7.8 million, and $6.2 million, respectively. …

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BORROWINGS FHLB advances totaled $12.3 million with a weighted average interest rate of 0.66% as of December 31, 2025 and totaled $13.2 million with a weighted average interest rate of 0.54% as of December 31, 2024. The FHLB advances outstanding as of December 31, 2025 mature between 2026 and 2030. Borrowings from the FHLB are secured by the FHLB stock held by the Company and pledged security in the form of qualifying loans. The loans pledged as of December 31, 2025 and 2024 totaled $1.96 billion and $1.91 billion, respectively. As of December 31, 2025 and 2024, loans pledged also served as collateral for credit exposure of $0.4 million associated with the Banks participation in the FHLBs Mortgage Partnership Finance Program. As of December 31, 2025 and 2024, loans pledged also served as collateral for letters of credit for the benefit of uninsured public funds deposits totaling $70.2 million and $70.0 million, respectively. The Bank also had available borrowings through the discount window of the Federal Reserve Bank of Chicago. Available borrowings are based on the collateral pledged. As of December 31, 2025 and 2024, debt securities with a carrying value of $119.6 million and $108.0 million, respectively, were pledged to secure available borrowings. …

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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): Year Ended December 31, (dollars in thousands) 2025 2024 2023 Restricted stock units $ 1,196 $ 1,061 $ 1,204 Performance restricted stock units 747 691 749 Total awards classified as equity 1,943 1,752 1,953 Stock appreciation rights 170 (32) 95 Total stock-based compensation expense $ 2,113 $ 1,720 $ 2,048 Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of the Companys common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Companys 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 accrued until vested, are classified as dividends charged to retained earnings. During …

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"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 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 Companys 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, co …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Allocation of income tax expense between current and deferred portions is as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Current Federal $ 18,731 $ 17,090 $ 12,538 State 8,438 7,517 6,384 Total current 27,169 24,607 18,922 Deferred Federal 268 307 2,811 State 61 689 1,006 Total deferred 329 996 3,817 Income tax expense $ 27,498 $ 25,603 $ 22,739 The Company had no income from foreign sources and therefore had no foreign income tax expense. Income tax expense differs from the statutory federal rate due to the following: Year Ended December 31, 2025 2024 2023 (dollars in thousands) Amount Percentage Amount Percentage Amount Percentage Federal income tax, at US statutory rate $ 21,946 21.0 % $ 20,450 21.0 % $ 18,602 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 6,711 6.4 6,174 6.3 5,838 6.6 Nontaxable or nondeductible items: Federally tax exempt interest income (1,417) (1.3) (1,391) (1.4) (1,767) (2.0) Other 255 0.2 89 0.1 266 0.3 Tax credits (186) (0.2) (137) (0.1) (190) (0.2) Other 189 0.2 418 0.4 (10) Income tax expense $ 27,498 26.3 % $ 25,603 26.3 % $ 22,739 25.7 % The effective tax rate differs from the federal statutory rate primarily due to state taxes, net of the federal tax benefit, and federally tax exempt interest income. Illinois state taxes made up the majority of the state tax effect. Tax credits include projected tax losses from, as well as amortization of, tax credit investments. The compon …

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"Impact of Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology, commonly referred to as the current expected credit losses (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held-to-maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance, such as loan commitments and letters of credit. In addition, ASC 326 made changes to the accounting for debt securities available-for-sale. One such change is to require credit losses be presented as an allowance rather than as a write-down on debt securities available-for-sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $6.9 mill …

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RELATED PARTY TRANSACTIONS Loans As of December 31, 2025 and 2024, loans to directors, executive officers, principal shareholders and their affiliated entities (related parties) totaled $0.3 million and $0.5 million, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us. Deposits As of December 31, 2025 and 2024, deposits of related parties totaled $5.5 million and $4.8 million, respectively. …

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SEGMENT INFORMATION The Companys operations consist of one reportable segment. The President and Chief Executive Officer is the designated chief operating decision maker. The chief operating decision maker uses consolidated financial information for purposes of allocating resources and assessing performance. The chief operating decision maker uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used to assess performance and in establishing compensation. Interest income from loans and investments as well as noninterest income from deposit customer activity, wealth management activities, and mortgage servicing generate the significant revenues. Interest expense, provisions for credit losses, and noninterest expenses such as compensation, occupancy, and data processing costs constitute the significant expenses. Significant revenues and expenses regularly provided to the chief operating decision maker are detailed in the consolidated statements of income. …

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"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Significant accounting policies are summarized below. Basis of Consolidation The consolidated financial statements of HBT Financial include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank. Heartland Bank also maintains two limited liability companies that holds specific assets for risk mitigation and tax planning purposes and are consolidated into HBT Financial's consolidated financial statements. The Company also has eight wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B; Heartland Bancorp, Inc. Capital Trust C; Heartland Bancorp, Inc. Capital Trust D; FFBI Capital Trust I; National Bancorp Statutory Trust I; Town and Country Statutory Trust II; Town and Country Statutory Trust III; and West Plains Investors Statutory Trust I, w …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing