HBT Financial Reports $19.2 Million Net Income in Q2 2025, Up 6.4%

HBT Financial, Inc. reported a net income of $19.2 million for the second quarter of 2025, reflecting a 6.4% increase from $18.1 million in the same period last year. The company's total interest and dividend income rose to $63.9 million, up from $62.8 million, while total interest expense decreased to $14.3 million from $15.8 million. This resulted in a net interest income of $49.7 million, a 5.6% increase compared to the prior year. The net interest margin improved to 4.14%, up from 3.95%, primarily due to lower funding costs and higher yields on interest-earning assets.

In terms of overall financial performance, HBT Financial's total assets decreased slightly to $5.0 billion as of June 30, 2025, down from $5.03 billion at the end of 2024. The company experienced a decline in loans, which totaled $3.35 billion, a decrease of 3.4% from the previous period, attributed to paydowns from property sales. Total deposits also saw a minor decline to $4.31 billion, down from $4.32 billion, with a notable shift from repurchase agreements to interest-bearing demand deposit accounts.

Strategically, HBT Financial continues to focus on enhancing its product offerings and expanding its market presence. The company operates 66 full-service branches across Illinois and eastern Iowa, maintaining a strong deposit share in many central Illinois markets. The bank's loan portfolio remains diversified, with significant segments in commercial real estate and multi-family loans, which together account for a substantial portion of total loans.

Operationally, HBT Financial reported a slight increase in its employee headcount, reflecting ongoing investments in human capital to support growth initiatives. The company also noted a decrease in nonperforming assets to $6.5 million, down from $8.0 million, indicating improved asset quality. The allowance for credit losses stood at $41.7 million, representing 1.24% of total loans, which is consistent with the company's risk management practices.

Looking ahead, HBT Financial anticipates continued growth in net interest income driven by higher loan balances and improved yields, although potential fluctuations in interest rates may impact future performance. The company remains committed to maintaining strong capital levels, with a total capital ratio of 17.74% as of June 30, 2025, well above regulatory requirements. Management is optimistic about the bank's ability to navigate market conditions and capitalize on growth opportunities in the coming quarters.