HBT Financial reports Q3 adjusted EPS 61c, consensus 57c

Net interest income for the third quarter of 2024 was $47.7 million, an increase of 1.5% from $47.0 million for the second quarter of 2024. The increase was primarily attributable to improved loan yields which were mostly offset by an increase in funding costs. Net interest margin for the third quarter of 2024 was 3.98%, compared to 3.95% for the second quarter of 2024. The ratio of tangible common equity to tangible assets increased to 9.35% as of September 30, 2024, from 8.74% as of June 30, 2024, and tangible book value per share increased by $0.91 to $14.55 as of September 30, 2024, when compared to June 30, 2024. Reports CET1 ratio 13.15%. J. Lance Carter, CEO said, “In the third quarter, we continued our consistently solid financial performance with net income of $18.2 million, adjusted net income of $19.2 million, adjusted ROAA of 1.53% and adjusted ROATCE of 17.20%. We have also seen tangible equity continue to build, with tangible book value per share increasing 23.3% over the last year. Our net interest margin increased 3 basis points to 4.03% while funding costs remained modest, increasing 5 basis points to 1.47%. Our asset quality remains strong with net charge-offs at 0.07% of average loans on an annualized basis during the quarter and nonperforming assets to total assets at 0.17%. We have not seen any significant signs of stress in our loan portfolio, but we continue to monitor the portfolio closely. Noninterest income remained consistent and noninterest expense of $31.3 million was up only 2.1% when compared to the third quarter of 2023, as we remain focused on operational efficiency while continuing to invest in our business. Lastly, all capital ratios had solid increases and can support future organic growth or acquisitions.”