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Dec 31, 2023
Hbt Financial Q4 2023 Earnings Report
Reported net income of $18.4 million and EPS of $0.58, driven by strong profitability and balance sheet management.
Key Takeaways
HBT Financial, Inc. reported a net income of $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023. The company demonstrated strong profitability with an adjusted ROAA of 1.53% and an adjusted ROATCE of 19.81%. Deposit growth, excluding brokered deposits, was 4.2% for the quarter, and loan growth remained solid at 1.8%.
Net income was $18.4 million, or $0.58 per diluted share, with a return on average assets of 1.46%.
Adjusted net income was $19.3 million, or $0.60 per diluted share, with an adjusted ROAA of 1.53%.
Asset quality remained strong, with nonperforming assets to total assets at 0.17%.
The Board of Directors declared a quarterly cash dividend of $0.19 per share, an increase of $0.02 from the previous quarter.
Hbt Financial
Hbt Financial
Forward Guidance
HBT Financial anticipates a moderation in the pace of net interest margin decreases in the first quarter of 2024. Recent drop in interest rates increased accumulated other comprehensive income (loss) by $21.3 million, driving a 9.3% increase in tangible book value per share. Capital metrics have increased, supporting continued organic growth or future acquisitions.
Positive Outlook
- Believes that the pace of net interest margin decreases will moderate in the first quarter of 2024.
- Accumulated other comprehensive income (loss) increased by $21.3 million due to the recent drop in interest rates.
- Tangible book value per share increased by 9.3% due to the increase in accumulated other comprehensive income and strong earnings retention.
- All capital metrics increased and can support continued organic growth or future acquisitions.
- Strong financial performance and balance sheet enable an increase in the quarterly dividend by $0.02 per share.
Challenges Ahead
- Net interest income decreased by 2.5% from the third quarter of 2023 due to an increase in funding costs.
- Net interest margin decreased from 4.07% to 3.93% due to higher funding costs.
- Noninterest income decreased by 3.0% from the third quarter of 2023 due to a negative mortgage servicing rights fair value adjustment.
- Recognized $3.4 million of net losses on the sale of $66.8 million of municipal securities in January 2024.
- Cost of funds increased to 1.26% for the fourth quarter of 2023, compared to 0.96% for the third quarter of 2023.