HBT Financial Reports $11.2 Million Net Income in Q1 2026, Down 41.3% Due to Acquisition Costs

HBT Financial, Inc. reported a net income of $11.2 million for the first quarter of 2026, a decrease of 41.3% compared to $19.1 million in the same period of 2025. This decline was primarily attributed to $15.7 million in acquisition-related expenses following the company's acquisition of CNB Bank Shares, Inc. on March 1, 2026. Total interest and dividend income increased to $71.8 million, up from $63.1 million year-over-year, driven by higher average interest-earning asset balances and improved yields on debt securities. The net interest income rose to $56.4 million, a 15.8% increase from the previous year, reflecting a net interest margin of 4.20%, up from 4.12%.

The acquisition of CNB significantly impacted HBT Financial's financial position, adding approximately $1.81 billion in total assets, $1.30 billion in loans, and $1.52 billion in deposits. As of March 31, 2026, total assets reached $6.77 billion, a 33.6% increase from $5.07 billion at the end of 2025. The company’s loan portfolio expanded to $4.69 billion, marking a 35.6% increase, while total deposits rose to $5.80 billion, up 33.1% from the previous quarter. The allowance for credit losses also increased to $60.5 million, reflecting a 45.1% rise due to the acquisition.

Operationally, HBT Financial's customer base and engagement metrics showed positive trends. The company operated 83 full-service branches across Illinois, eastern Iowa, and suburban St. Louis, maintaining a leading deposit share in many central Illinois markets. The acquisition of CNB enhanced its footprint in these regions, with the integration of CNB's operations completed successfully in March 2026. The company reported a significant increase in wealth management fees, which rose by 32.5% to $3.76 million, driven by higher assets under management post-acquisition.

Looking ahead, HBT Financial anticipates continued growth in loan and deposit volumes, supported by its expanded market presence and strategic initiatives. However, management remains cautious about potential economic fluctuations and their impact on credit quality. The company is focused on maintaining a strong capital position, with a total capital ratio of 15.99% as of March 31, 2026, well above regulatory requirements. HBT Financial's management is committed to navigating the evolving market landscape while leveraging its enhanced operational capabilities following the CNB acquisition.