What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-06 compared with 2025-03-07 · 227 added, 262 removed, 2056 unchanged (19% of the section changed)

7 unchanged sentences

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Comprehensive Income

Consolidated Statements of Changes in Stockholders’ Equity

5 unchanged sentences

We have audited the accompanying consolidated balance sheets of HBT Financial, Inc.

and Subsidiaries’ (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes to the consolidated financial statements (collectively, the financial statements).

and Subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 6, 2026, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

Adoption of New Accounting Standard

As discussed in Note 1 to the financial statements, the Company changed its method of accounting for credit losses on financial instruments in 2023 due to the adoption of Accounting Standards Update No.

2016-13, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments.

Basis for Opinion

10 unchanged sentences

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses—Loans

3 unchanged sentences

Management estimates the allowance for credit losses for pooled loans utilizing a discounted cash flow (DCF) method or weighted average remaining maturity (WARM) method.

The DCF method estimates a probability of default with a loss given default applied to future cash flows that are adjusted to present value.

The DCF method estimates future cash flows, adjusted to present value, after factoring in adjustments for prepayments, probability of default, loss given default, and time to recovery.

The WARM method estimates expected losses through application of the Company’s historical losses.

The measurement of expected credit losses on collectively evaluated loans is based on relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of the amortized cost basis.

Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions.

Adjustments to historical loss information (qualitative adjustments) are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions.

The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and employs a reversion to historical credit loss information.

The development of estimated prepayments, probability of default, loss given default, reasonable and supportable forecasts, and qualitative adjustments are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available.

We identified the judgment in developing appropriate assumptions on which to base expected losses from economic forecasts and other qualitative factors as a critical audit matter, as auditing the underlying adjustments required significant auditor judgment as amounts determined by management rely on analysis that is highly subjective and includes significant estimation uncertainty.

Our audit procedures related to the assumptions to base expected losses from economic forecasts and other qualitative factors include the following, among others:

• We obtained an understanding of the relevant controls related to the evaluation and establishment of the economic forecasts and qualitative factors, and tested such controls for design and implementation and operating effectiveness, including management's review of the allowance in support of adjustments.

• We evaluated management's rationale for significant assumptions.

• We evaluated the reasonableness of data inputs used as a basis for the adjustments related to the qualitative factors, and tested the completeness and accuracy of the data utilized by comparing to internal and external source data.

• We evaluated the directional consistency and magnitude of the resulting qualitative component of the allowance for credit losses, as compared to internal and external source data, and how the data correlated with the risk categorization and numeric framework established by management.

The development of estimated reasonable and supportable forecasts, and qualitative adjustments are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available.

We identified the judgment in developing appropriate assumptions on which to base expected losses from economic forecasts, and certain qualitative factors as a critical audit matter, as auditing these significant assumptions required significant auditor judgment as amounts determined by management rely on analysis that is highly subjective and includes estimates that are highly sensitive to change.

Our audit procedures related to the significant assumptions include the following, among others:

• We obtained an understanding of the relevant controls related to the evaluation and establishment, review and approval of the economic forecasts and qualitative factors, and tested such controls for design and implementation and operating effectiveness, including management's review of the allowance in support of adjustments.

• We evaluated the relevance and accuracy of data inputs used as a basis for the adjustments related to the economic forecast and certain qualitative factors, and tested the completeness and accuracy of the data utilized by comparing to internal and external source data.

• We evaluated the directional consistency and magnitude of the resulting adjustments in the allowance for credit losses for loans, as compared to internal and external independent source data, and how the data correlated with past events, current conditions, and reasonable and supportable forecasts.

/s/ RSM US LLP

10 unchanged sentences

Cash and cash equivalents 122,269 137,692

Interest-bearing time deposits with banks — 509

Debt securities available-for-sale, at fair value 813,101 698,049

93 unchanged sentences

Amortization of intangible assets 2,726 2,839 2,670

Loss on extinguishment of debt 391 — —

FDIC insurance 2,234 2,254 2,280

12 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31,

1 unchanged sentence

NET INCOME $ 77,008 $ 71,780 $ 65,842

OTHER COMPREHENSIVE INCOME (LOSS)

Unrealized gains (losses) on debt securities available-for-sale 9,023 16,949 ( 105,459 )

OTHER COMPREHENSIVE INCOME

Unrealized gains on debt securities available-for-sale 30,477 9,023 16,949

Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income 200 3,697 1,820

2 unchanged sentences

Reclassification adjustment for net settlements on derivative instruments ( 38 ) ( 348 ) ( 468 )

Total other comprehensive income (loss), before tax 14,428 20,416 ( 102,427 )

Income tax expense (benefit) 4,030 5,820 ( 29,197 )

Total other comprehensive income (loss) 10,398 14,596 ( 73,230 )

TOTAL COMPREHENSIVE INCOME (LOSS) $ 82,178 $ 80,438 $ ( 16,774 )

Total other comprehensive income, before tax 32,613 14,428 20,416

Income tax expense 8,866 4,030 5,820

Total other comprehensive income 23,747 10,398 14,596

TOTAL COMPREHENSIVE INCOME $ 100,755 $ 82,178 $ 80,438

See accompanying Notes to Consolidated Financial Statements

10 unchanged sentences

Balance, December 31, 2022 28,752,626 $ 293 $ 222,783 $ 232,004 $ ( 71,759 ) $ ( 9,689 ) $ 373,632

Cumulative effect of change in accounting principle (ASU 2016-13) — — — ( 6,922 ) — — ( 6,922 )

Net income — — — 65,842 — — 65,842

Other comprehensive loss — — — — ( 73,230 ) — ( 73,230 )

Other comprehensive income — — — — 14,596 — 14,596

Stock-based compensation — — 1,953 — — — 1,953

Issuance of common stock upon vesting of restricted stock units, net of tax withholdings 43,607 — ( 181 ) — — — ( 181 )

Issuance of common stock in Town and Country acquisition 3,378,600 34 71,322 — — — 71,356

Repurchase of common stock ( 479,005 ) — — — — ( 8,907 ) ( 8,907 )

7 unchanged sentences

Issuance of common stock upon vesting of restricted stock units, net of tax withholdings 96,341 1 ( 332 ) — — — ( 331 )

Issuance of common stock in Town and Country acquisition 3,378,600 34 71,322 — — — 71,356

Repurchase of common stock ( 232,803 ) — — — — ( 4,423 ) ( 4,423 )

2 unchanged sentences

Balance, December 31, 2024 31,559,366 328 297,297 316,764 ( 46,765 ) ( 23,019 ) 544,605

Cumulative effect of change in accounting principle (ASU 2023-02) — — — 116 — — 116

Net income — — — 77,008 — — 77,008

18 unchanged sentences

Net amortization of debt securities 2,264 3,641 5,730

Deferred income tax expense (benefit) 996 3,817 ( 2,919 )

Deferred income tax expense 329 996 3,817

Stock-based compensation 1,943 1,752 1,953

8 unchanged sentences

Amortization of intangibles 2,726 2,839 2,670

Decrease (increase) in mortgage servicing rights 174 1,615 ( 2,153 )

Decrease in fair value of mortgage servicing rights 1,883 174 1,615

Net loss (gain) on extinguishment of subordinated debt 391 — —

Amortization of discount and issuance costs on subordinated notes and debentures 116 139 139

Amortization of discount on Federal Home Loan Bank advances 158 401 379

Amortization of premium on interest-bearing time deposits with banks — — 5

Amortization of premium on time deposits — ( 108 ) ( 400 )

4 unchanged sentences

Net gain on bank owned life insurance proceeds — ( 247 ) —

Increase in accrued interest receivable ( 236 ) ( 1,915 ) ( 4,605 )

Decrease (increase) in other assets 3,053 2,174 ( 8,007 )

Decrease (increase) in accrued interest receivable 991 ( 236 ) ( 1,915 )

Decrease in other assets 645 3,053 2,174

Increase (decrease) in other liabilities ( 2,554 ) 1,967 ( 19,965 )

15 unchanged sentences

Purchase of loans ( 9,782 ) ( 14,566 ) ( 61,009 )

Net increase in loans ( 42,623 ) ( 81,641 ) ( 113,665 )

Net decrease (increase) in loans 22,338 ( 42,623 ) ( 81,641 )

Purchase of restricted stock — — ( 23,832 )

10 unchanged sentences

Net decrease in repurchase agreements ( 28,969 ) ( 13,473 ) ( 639 )

Net increase (decrease) in short-term Federal Home Loan Bank advances — ( 234,195 ) 160,000

Net decrease in short-term Federal Home Loan Bank advances — — ( 234,195 )

Proceeds from long-term Federal Home Loan Bank advances 6,800 907 —

Repayment of long-term Federal Home Loan Bank advances ( 7,888 ) ( 700 ) —

Repayment of subordinated notes ( 40,000 ) — —

Taxes paid related to the vesting of restricted stock units ( 691 ) ( 331 ) ( 181 )

8 unchanged sentences

Net cash paid for income taxes:

Federal $ 18,425 $ 16,425 $ 13,795

Illinois 7,875 6,195 6,150

Other states 315 1,256 567

Total $ 26,615 $ 23,876 $ 20,512

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES

14 unchanged sentences

The consolidated financial statements of HBT Financial include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank.

Heartland Bank maintains a limited liability company that holds specific assets for risk mitigation purposes and is consolidated into HBT Financial's consolidated financial statements.

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.

23 unchanged sentences

For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less.

Cash flows from loans and deposits are reported net.

Cash flows from loans, deposits, and short-term Federal Home Loan Bank ("FHLB") advances are reported net.

Interest-Bearing Time Deposits with Banks

39 unchanged sentences

Restricted Stock

Restricted stock, which consists of Federal Home Loan Bank of Chicago (“FHLB”) stock, is carried at cost and evaluated for impairment.

Restricted stock, which consists of FHLB stock, is carried at cost and evaluated for impairment.

Loans Held for Sale

214 unchanged sentences

Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale and fair value changes of interest rate swap agreements designated as cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss).

In conjunction with changes to the Company's applicable income tax rates, such as the impact of the conversion to a C Corporation in 2019, the Company recorded deferred income tax expense of $ 3.4 million related to the unrealized gains (losses) on debt securities, and deferred income tax benefit of $ 0.3 million related to derivatives, through the income statement in accordance with ASC 740, Income Taxes .

In conjunction with changes to the Company's applicable income tax rates, such as the impact of the conversion to a C Corporation in 2019, the Company recorded deferred income tax expense of $ 3.4 million related to the unrealized gains (losses) on debt securities through the income statement in accordance with ASC 740, Income Taxes .

This difference will remain in accumulated other comprehensive income (loss) until the underlying debt securities are sold or mature or the underlying cash flow hedging relationships terminate in accordance with the portfolio approach.

102 unchanged sentences

This standard did not have an impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

On January 1, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

3 unchanged sentences

The amendments in this update are effective for years beginning after December 15, 2024.

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

Early adoption is permitted.

This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

The Company adopted ASU 2023-09 retrospectively.

This standard did not have an impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

6 unchanged sentences

This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326):

Purchased Loans .

ASU 2025-08 expands the population of acquired financial assets subject to the gross-up approach in Topic 326.

Loans (excluding credit cards) acquired without credit deterioration and deemed "seasoned" are purchased seasoned loans and accounted for using the gross-up approach at acquisition.

All non-PCD loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.

Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

The amendments in this update are effective for years beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted, and the Company adopted this update on January 1, 2026.

This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.

HBT FINANCIAL, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – ACQUISITIONS

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

ASU 2025-09 provides clarification on certain aspects of the guidance on hedge accounting and addresses several incremental hedge accounting issues arising from the global reference rate reform.

Consistent with the original objective of ASU 2017-12, Derivatives and Hedging (Topic 815):

Targeted Improvements to Accounting for Hedging Activities , the objective of ASU 2025-09 is to more closely align hedge accounting with the economics of an entity's risk management activities.

The ASU requires public entities to apply the amendments prospectively.

The amendments in this update are effective for years beginning after December 15, 2026, and interim periods within those annual reporting periods.

Early adoption is permitted.

This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements .

ASU 2025-11 clarifies interim disclosure requirements and the applicability of Topic 270, Interim Reporting.

The amendments result in a comprehensive list of interim disclosures required by GAAP.

The amendment also adds a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

The ASU allows public entities to apply the amendments either prospectively or retrospectively.

The amendments in this update are effective for interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

This standard is not expected to have a material impact on the Company's consolidated results of operations or financial position.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 – 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 assessments are incomplete as of the filing date of this Form 10-K.

Fair values are subject to refinement up to one year after the closing date of March 1, 2026.

The acquisition is a subsequent event and the financial results of CNB are not recognized in the consolidated financial statements as of and for the year ended December 31, 2025.

The combined company will have increased density in the central Illinois, Chicago MSA, and St.

Louis MSA markets.

There were no CNB acquisition-related expenses recognized prior to the fourth quarter of 2025.

Acquisition-related expenses recognized during the year ended December 31, 2025 are summarized below.

(dollars in thousands) December 31, 2025

NONINTEREST EXPENSE

Salaries $ 43

Data processing 370

Legal fees and other noninterest expense 586

Total CNB acquisition-related expenses $ 999

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Town and Country Financial Corporation

11 unchanged sentences

The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois, and expanded our footprint into metro-east St.

Acquisition-related expenses recognized during the years ended December 31, 2023 and 2022 are summarized below.

There were no Town and Country acquisition-related expenses recognized during 2024.

(dollars in thousands) December 31, 2023 December 31, 2022

Acquisition-related expenses recognized during the years ended December 31, 2023 are summarized below.

There were no Town and Country acquisition-related expenses recognized subsequent to the second quarter of 2023.

(dollars in thousands) December 31, 2023

PROVISION FOR CREDIT LOSSES $ 5,924

53 unchanged sentences

Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $ 5.2 million and an allowance for credit losses on unfunded commitments of $ 0.7 million through an increase to the provision for credit losses.

The following table provides the pro forma information for the results of operations for the years ended December 31, 2023 and 2022 as if the acquisition of Town and Country had occurred on January 1, 2022.

The following table provides the pro forma information for the results of operations for the year ended December 31, 2023 as if the acquisition of Town and Country had occurred on January 1, 2022.

The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization.

2 unchanged sentences

The acquisition-related expenses that have been recognized are included in net income in the following table.

Year Ended December 31,

(dollars in thousands, except per share data) 2023 2022

(dollars in thousands, except per share data) Year Ended December 31, 2023

Total revenues (net interest income and noninterest income) $ 230,171

21 unchanged sentences

December 31, 2025

(dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses

(dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses

Held-to-maturity:

10 unchanged sentences

(dollars in thousands) Amortized Cost Gross

Allowance for Credit Losses Fair Value

Losses Allowance for Credit Losses Fair Value

Available-for-sale:

8 unchanged sentences

December 31, 2024

(dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses

(dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses

Held-to-maturity:

5 unchanged sentences

Total held-to-maturity $ 499,858 $ 48 $ ( 54,720 ) $ 445,186 $ —

On March 31, 2022, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates.

The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category:

March 31, 2022

(dollars in thousands) Amortized

Cost Fair Value

government agency $ 78,841 $ 71,048

Mortgage-backed:

Agency residential 8,175 7,651

Agency commercial 27,834 25,432

Total $ 114,850 $ 104,131

The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred.

The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income (loss), but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount.

As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income (loss) will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2025 and 2024, the Bank had debt securities with a carrying value of $ 412.8 million and $ 468.8 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.

12 unchanged sentences

Total $ 841,867 $ 813,101 $ 458,746 $ 426,799

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of December 31, 2025 and December 31, 2024, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:

14 unchanged sentences

Total available-for-sale $ ( 348 ) $ 66,043 $ ( 33,085 ) $ 481,795 $ ( 33,433 ) $ 547,838

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

17 unchanged sentences

The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Municipal securities include general obligation bonds which have a very low historical default rate due to issuers generally having taxing authority to service the debt and represent approximately 75 % of the total fair value of our municipal securities portfolio as of December 31, 2025.

1 unchanged sentence

The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data.

The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

The changes in fair value in municipal securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

4 unchanged sentences

Accrued interest on debt securities is excluded from the estimate of credit losses and totaled $ 5.5 million and $ 5.1 million as of December 31, 2025 and 2024, respectively.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Sales of debt securities were as follows during the year ended December 31:

4 unchanged sentences

Gross realized losses ( 200 ) ( 3,697 ) ( 1,820 )

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Equity Securities

42 unchanged sentences

The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At December 31, 2024, the economic forecast used by management anticipates a mild economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate remaining stable and GDP growth slowing slightly and then increasing.

At December 31, 2025, the economic forecast used by management anticipates that the unemployment rate will remain relatively flat and moderate growth in gross domestic product ("GDP") during 2026.

After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period.

12 unchanged sentences

Balance, December 31, 2022 $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333

Provision for loan losses 88 ( 1,653 ) ( 1,707 ) ( 692 ) 209 146 ( 49 ) 2,952 ( 706 )

Adoption of ASC 326 ( 822 ) 587 501 1,969 85 797 1,567 2,299 6,983

PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247

Provision for credit losses 2,823 352 187 ( 487 ) 1,931 2,004 ( 1,399 ) 1,254 6,665

Charge-offs ( 428 ) ( 5 ) ( 202 ) — — ( 34 ) — ( 690 ) ( 1,359 )

1 unchanged sentence

Balance, December 31, 2023 4,980 2,272 7,714 5,998 3,837 5,204 975 9,068 40,048

Adoption of ASC 326 ( 822 ) 587 501 1,969 85 797 1,567 2,299 6,983

PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247

Provision for credit losses 1,677 825 3,407 ( 1,699 ) 682 ( 1,438 ) 246 54 3,754

108 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Pre-ASC 326 Adoption Impaired Loan Disclosures

The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans for the year ended December 31, 2022:

(dollars in thousands) Average

Investment Interest

With an allowance recorded:

Commercial and industrial $ 204 $ 18

Commercial real estate - owner occupied 970 63

Commercial real estate - non-owner occupied 10,943 740

Construction and land development — —

Multi-family — —

One-to-four family residential 384 16

Agricultural and farmland — —

Municipal, consumer, and other 6,259 236

Total $ 18,760 $ 1,073

With no related allowance:

Commercial and industrial $ 9,568 $ 453

Commercial real estate - owner occupied 8,619 525

Commercial real estate - non-owner occupied 12,636 1,278

Construction and land development 1,505 106

Multi-family — —

One-to-four family residential 6,238 352

Agricultural and farmland 228 13

Municipal, consumer, and other 3,361 148

Total $ 42,155 $ 2,875

Total loans individually evaluated for impairment:

Commercial and industrial $ 9,772 $ 471

Commercial real estate - owner occupied 9,589 588

Commercial real estate - non-owner occupied 23,579 2,018

Construction and land development 1,505 106

Multi-family — —

One-to-four family residential 6,622 368

Agricultural and farmland 228 13

Municipal, consumer, and other 9,620 384

Total $ 60,915 $ 3,948

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows during the year ended December 31, 2022:

(dollars in thousands) 2022

Beginning balance $ 413

Reclassification from non-accretable difference 548

Accretion income ( 231 )

Ending balance $ 730

Past Due and Nonaccrual Status

4 unchanged sentences

Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables present loans by category based on current payment and accrual status:

65 unchanged sentences

Credit Quality Indicators

In June 2024, the Company updated its risk rating categories to add a special mention category to provide another level of granularity in distinguishing risk levels of loans.

As of June 30, 2024, $ 19.5 million of the special mention loans would have been considered pass-watch and $ 10.6 million would have been considered substandard under the previous risk rating categories.

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all loans that are part of relationships with over $ 750 thousand in total exposure to identify credit risks and to assess the overall collectability of the portfolio.

These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review.

During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans.

Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan.

During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans.

These credit quality indicators are used to assign a risk rating to each individual loan.

Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan.

These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review.

Risk ratings are grouped into the following major categories:

27 unchanged sentences

December 31, 2024

(dollars in thousands) Pass Pass-Watch Substandard Total

(dollars in thousands) Pass Pass-Watch Special Mention Substandard Total

Commercial and industrial $ 404,779 $ 16,429 $ 1,957 $ 5,224 $ 428,389

86 unchanged sentences

Pass-Watch 475 1,310 186 1,121 — 1,775 10,613 949 16,429

Special Mention — 281 272 173 — — 1,231 — 1,957

Substandard — 1,913 1,016 721 — — 939 635 5,224

3 unchanged sentences

Pass-Watch 6,478 395 3,698 2,111 542 1,374 371 — 14,969

Special Mention 1,877 — — 150 — — 686 — 2,713

Substandard 819 700 506 3,707 1,241 511 — — 7,484

3 unchanged sentences

Pass-Watch 3,173 421 6,656 4,031 2,442 4,871 — — 21,594

Special Mention — — — — — — — — —

Substandard 23,245 9,191 — — — 2,048 — — 34,484

3 unchanged sentences

Pass-Watch — — — — — 18 697 661 1,376

Special Mention — — 8,750 12,097 — — — — 20,847

Substandard 475 — 216 — — 86 — — 777

2 unchanged sentences

Pass-Watch 2,791 — 567 — — 492 — 5 3,855

Special Mention 6,936 — — — 8,799 — — — 15,735

Substandard 92 — — — — — — — 92

3 unchanged sentences

Pass-Watch 1,126 1,271 936 242 405 2,252 134 275 6,641

Special Mention — — — 592 118 — — — 710

Substandard 281 522 861 473 382 4,824 16 389 7,748

3 unchanged sentences

Pass-Watch 100 2,671 1,424 1,403 508 861 10,633 554 18,154

Special Mention 134 87 — — — — 300 — 521

Substandard 332 51 494 9 3,183 — 319 386 4,774

Total $ 42,838 $ 38,402 $ 34,064 $ 30,126 $ 31,556 $ 8,517 $ 106,229 $ 1,643 $ 293,375

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands) Term Loans by Origination Year Revolving

Loans Revolving

to Term Total

2024 2023 2022 2021 2020 Prior

Municipal, consumer, and other

1 unchanged sentence

Pass-Watch 103 50 6 12 — 757 1 — 929

Special Mention — — — — — 4,107 — — 4,107

Substandard 21 5 33 — — 10,570 1 — 10,630

3 unchanged sentences

Pass-Watch 14,246 6,118 13,473 8,920 3,897 12,400 22,449 2,444 83,947

Special Mention 8,947 368 9,022 13,012 8,917 4,107 2,217 — 46,590

Substandard 25,265 12,382 3,126 4,910 4,806 18,039 1,275 1,410 71,213

Total $ 643,972 $ 508,848 $ 652,322 $ 556,015 $ 308,110 $ 316,089 $ 465,285 $ 15,505 $ 3,466,146

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Modifications

There were no loan modifications to borrowers experiencing financial difficulty during the year ended December 31, 2025.

The Company modified one commercial and industrial loan to a borrower experiencing financial difficulty during the year ended December 31, 2024.

The modification included an interest rate reduction and a term extension.

As of December 31, 2024, the book balance of the modified loan was $ 0.5 million, and the loan was current and performing in accordance with the modified terms.

There were no loan modifications to borrowers experiencing financial difficulty during the year ended December 31, 2023.

As of December 31, 2025, there were no loans modified to borrowers experiencing financial difficulty within the last 12 months.

As of December 31, 2024, the loans modified to borrowers experiencing financial difficulty within the last 12 months had a carrying balance of $ 0.5 million and were current and performing in accordance with the modified terms.

NOTE 5 – LOAN SERVICING

9 unchanged sentences

Ending balance $ 16,944 $ 18,827 $ 19,001

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 - BANK PREMISES AND EQUIPMENT

12 unchanged sentences

Total depreciation expense $ 3,200 $ 2,944 $ 3,108

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 – FORECLOSED ASSETS

14 unchanged sentences

Net gain on sales 155 112 764

Gains (losses) on foreclosed assets $ 22 $ 501 $ ( 314 )

Gains on foreclosed assets $ 4 $ 22 $ 501

As of December 31, 2025 and 2024, the carrying value of foreclosed one-to-four family residential real estate properties held was $ 0.9 million and $ 0.3 million, respectively.

1 unchanged sentence

As of December 31, 2024, there were 19 one-to-four family residential real estate loans in the process of foreclosure totaling $ 1.8 million.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS

13 unchanged sentences

Accumulated amortization $ 28,790 $ 292 $ 26,164 $ 192 $ 23,425 $ 92

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amortization of intangible assets for the years subsequent to December 31, 2025 is expected to be as follows (dollars in thousands):

11 unchanged sentences

Time 762,487 785,430

Brokered — 144,880

Total interest-bearing deposits 3,310,220 3,271,849

Total deposits $ 4,359,263 $ 4,318,254

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $ 289.9 million and $ 229.4 million as of December 31, 2025 and 2024, respectively.

There were no brokered deposits as of December 31, 2025 and 2024.

The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $ 201.4 million and $ 202.2 million as of December 31, 2025 and 2024, respectively.

9 unchanged sentences

Total interest expense on deposits $ 51,689 $ 56,047 $ 25,135

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2025, the scheduled maturities of time deposits are as follows (dollars in thousands):

4 unchanged sentences

NOTE 10 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

All repurchase agreements are sweep instruments.

The securities underlying the agreements as of December 31, 2024 and 2023 were under the Company’s control in safekeeping at third-party financial institutions, and included debt securities.

Information pertaining to securities sold under agreements to repurchase is as follows:

4 unchanged sentences

Carrying value of securities underlying the agreements $ — $ 37,628

During the first half of 2025, the Company transitioned the vast majority of repurchase agreement account balances to reciprocal interest-bearing demand deposit accounts.

As a result, there were no securities sold under agreements to repurchase as of December 31, 2025.

As of December 31, 2024, all repurchase agreements were sweep instruments.

The securities underlying the agreements were under the Company’s control in safekeeping at third-party financial institutions, and included debt securities.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 - BORROWINGS

4 unchanged sentences

As of December 31, 2025 and 2024, loans pledged also served as collateral for credit exposure of $ 0.4 million associated with the Bank’s participation in the FHLB’s Mortgage Partnership Finance Program.

As of December 31, 2024, loans pledged also served as collateral for a $ 70.0 million letter of credit for the benefit of uninsured public funds deposits.

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.

1 unchanged sentence

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.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 - SUBORDINATED NOTES

On September 3, 2020, the Company issued $ 40.0 million of fixed-to-floating rate subordinated notes that mature on September 15, 2030.

The subordinated notes, which are unsecured obligations of the Company, bear a fixed interest rate of 4.50 % for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month SOFR, as determined on the Floating Interest Determination Date, plus 4.37 %.

Interest is payable semi-annually during the five year fixed rate period and quarterly during the subsequent five year floating rate period.

The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after September 15, 2025.

If the subordinated notes are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest.

The transaction resulted in debt issuance costs of $ 0.8 million which is being amortized over 10 years.

As of December 31, 2024 and 2023, 100 % of the subordinated notes qualified as Tier 2 capital.

The face value and carrying value of the subordinated notes are summarized below:

3 unchanged sentences

Subordinated notes, at carrying value $ — $ 39,553

On September 3, 2020, the Company issued $ 40.0 million of fixed-to-floating rate subordinated notes with a maturity date of September 15, 2030.

The subordinated notes, which were unsecured obligations of the Company, had a fixed interest rate of 4.50 % for the first five years after issuance and thereafter had interest at a floating rate equal to three-month SOFR, as determined on the Floating Interest Determination Date, plus 4.37 %.

Interest was payable semi-annually during the five year fixed rate period and quarterly during the subsequent five year floating rate period.

The subordinated notes had a redemption in whole or in part on any interest payment date on or after September 15, 2025.

On September 15, 2025, the Company redeemed all $ 40.0 million of the fixed-to-floating rate subordinated notes issued on September 3, 2020 at a redemption price equal to 100 % of the aggregate principal amount of the notes, plus accrued and unpaid interest.

As a result of the transaction, the company recognized a $ 0.4 million loss on extinguishment of debt, which was included in noninterest expense.

The loss represents the acceleration of the unamortized issuance costs.

As of December 31, 2024, 100 % of the subordinated notes qualified as Tier 2 capital.

NOTE 13 – JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

Eight subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company owns all of the outstanding stock of the subsidiary business trusts.

3 unchanged sentences

In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The face values and carrying values of the junior subordinated debentures are summarized as follows:

30 unchanged sentences

West Plains Investors Statutory Trust I SOFR plus 1.71 5.43 6.07 June 15, 2037

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The distribution rate payable on the debentures is cumulative and payable quarterly in arrears.

4 unchanged sentences

The Company has the right to terminate each Capital Trust and cause the junior subordinated debentures to be distributed to the holders of the capital securities in liquidation of such trusts.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability.

5 unchanged sentences

Interest Rate Swaps Designated as Cash Flow Hedges

The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings.

For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreements designated as cash flow hedges were as follows:

The interest rate swap agreement designated as a cash flow hedge was as follows:

December 31, 2025 December 31, 2024

2 unchanged sentences

Fair value recorded in other assets $ — $ — $ 7,000 $ 38

As of December 31, 2024, the interest rate swap agreement designated as a cash flow hedge matures in April 2025.

The counterparty had cash pledged and held on deposit by the Company of $ 0.6 million as of December 31, 2023.

The interest rate swap agreement matured in April 2025.

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income was as follows:

38 unchanged sentences

Risk Participation Agreements

We have entered into a risk participation agreement to share credit exposure with a counterparty related to an interest rate swap agreement associated with a loan participation.

We have entered into a risk participation agreement to share credit exposure with a counterparty in an interest rate swap agreement associated with a loan participation.

Under the risk participation agreement, the Company sold a portion of its credit exposure, receiving an up-front fee, and will be required to make a payment to the counterparty if the loan customer defaults on its obligations.

2 unchanged sentences

Risk participation agreements sold

Number of risk participation agreements 1 1

Notional amount $ 5,268 $ 5,268

6 unchanged sentences

Balance, December 31, 2022 $ ( 61,998 ) $ ( 9,946 ) $ 185 $ ( 71,759 )

Transfer from available-for-sale to held-to-maturity 7,664 ( 7,664 ) — —

Other comprehensive income (loss) before reclassifications ( 105,459 ) — 1,183 ( 104,276 )

Other comprehensive income before reclassifications 16,949 — 161 17,110

Reclassifications 1,820 1,954 ( 468 ) 3,306

13 unchanged sentences

Income tax expense (benefit) 8,589 553 ( 276 ) 8,866

Other comprehensive income (loss), after tax 9,171 1,430 ( 203 ) 10,398

Other comprehensive income, after tax 22,088 1,421 238 23,747

Balance, December 31, 2025 $ ( 17,320 ) $ ( 5,698 ) $ — $ ( 23,018 )

17 unchanged sentences

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:

2 unchanged sentences

(dollars in thousands) Amount Percentage Amount Percentage Amount Percentage

Federal income tax, at statutory rate $ 20,450 21.0 % $ 18,602 21.0 % $ 16,000 21.0 %

Federal income tax, at US statutory rate $ 21,946 21.0 % $ 20,450 21.0 % $ 18,602 21.0 %

Increase (decrease) resulting from:

Federally tax exempt interest income ( 1,391 ) ( 1.4 ) ( 1,767 ) ( 2.0 ) ( 1,618 ) ( 2.1 )

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.

HBT FINANCIAL, INC.

8 unchanged sentences

Nonaccrual interest 632 673

Foreclosed assets — 18

Goodwill 3 74

Net operating loss carryforward 62 99

8 unchanged sentences

Prepaid assets 1,087 982

Goodwill 59 —

Other 655 532

6 unchanged sentences

The Company is generally no longer subject to federal or state income tax examinations for years prior to 2022.

NOTE 17 – EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.

HBT FINANCIAL, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 17 – EARNINGS PER SHARE

The Company previously granted restricted stock units that contained non-forfeitable rights to dividend equivalents which were considered participating securities.

Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method.

The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

The following table sets forth the computation of basic and diluted earnings per share:

32 unchanged sentences

Total stock-based compensation expense $ 2,113 $ 1,720 $ 2,048

In February 2022, all outstanding restricted stock unit and performance restricted stock unit agreements were modified to address treatment upon retirement.

In the event of retirement, and if the retirement eligibility requirements are met, then 100 % of unvested restricted stock units and performance restricted stock units will continue to vest in accordance with the originally established vesting schedule.

The retirement modification resulted in the acceleration of $ 0.6 million of expense, although total compensation costs related to the modified agreements remained the same.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restricted Stock Units

2 unchanged sentences

Compensation cost is based on the Company’s 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 either accrued until vested, are classified as dividends charged to retained earnings.

Dividend equivalents on restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the years ended December 31, 2025, 2024, and 2023, the total grant date fair value of the restricted stock units granted was $ 1.1 million, $ 1.0 million, and $ 1.0 million, respectively, based on the grant date closing prices.

27 unchanged sentences

During the years ended December 31, 2025, 2024, and 2023, the total fair value of the performance restricted stock units granted was $ 0.4 million, $ 0.4 million, and $ 0.4 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date.

The total intrinsic value of performance restricted stock units that vested during the year ended December 31, 2024 was $ 0.8 million.

The total intrinsic value of performance restricted stock units that vested during the year ended December 31, 2025 and 2024 was $ 1.1 million and $ 0.8 million, respectively.

The following is a summary of performance restricted stock unit activity:

13 unchanged sentences

As of December 31, 2025, unrecognized compensation cost related to non-vested performance restricted stock units was $ 0.3 million, based on the current assessment of the probable outcome of the performance conditions.

This cost is expected to be recognized over the weighted average remaining service period of 1.2 years.

This cost is expected to be recognized over the weighted average remaining service period of 1.2 year.

HBT FINANCIAL, INC.

31 unchanged sentences

Expected dividend yield 3.25 % 3.47 %

As of December 31, 2023, the liability recorded for previously exercised stock appreciation rights was $ 0.2 million which was paid in 2024.

HBT FINANCIAL, INC.

12 unchanged sentences

As of December 31, 2025 and 2024, the Company and the Bank each met all capital adequacy requirements to which they were subject.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank were as follows:

December 31, 2025

Actual For Capital

Purposes To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions

(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio

9 unchanged sentences

Tier 1 Capital (to Average Assets) 608,137 12.02 202,314 4.00 252,893 5.00

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

Actual For Capital

Purposes To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions

(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio

9 unchanged sentences

Tier 1 Capital (to Average Assets) 596,071 11.98 199,030 4.00 248,787 5.00

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 21 – SEGMENT INFORMATION

13 unchanged sentences

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives.

1 unchanged sentence

Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recurring Basis

86 unchanged sentences

Values are estimated using recent appraisals and customized discounting criteria.

Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Due to the significance of unobservable inputs, fair values of bank premises held for sale have been classified as Level 3.

Foreclosed Assets

2 unchanged sentences

Values are estimated using recent appraisals and customized discounting criteria.

Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

Due to the significance of unobservable inputs, fair values of foreclosed assets have been classified as Level 3.

HBT FINANCIAL, INC.

8 unchanged sentences

Collateral-dependent loans — — 23,196 23,196

Bank premises held for sale — — 317 317

Foreclosed assets — — 1,126 1,126

5 unchanged sentences

Collateral-dependent loans — — 27,717 27,717

Bank premises held for sale — — 317 317

Foreclosed assets — — 367 367

4 unchanged sentences

Collateral-dependent loans $ 23,196 Appraisal of collateral Appraisal adjustments Not meaningful

Bank premises held for sale 317 Appraisal Appraisal adjustments 7 % ( 7 %)

Foreclosed assets 1,126 Appraisal Appraisal adjustments 7 % ( 7 %)

4 unchanged sentences

Collateral-dependent loans $ 27,717 Appraisal of collateral Appraisal adjustments Not meaningful

Bank premises held for sale 317 Appraisal Appraisal adjustments 7 % ( 7 %)

Foreclosed assets 367 Appraisal Appraisal adjustments 7 % ( 7 %)

5 unchanged sentences

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace.

Fair values are estimated for portfolios of

HBT FINANCIAL, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace.

Fair values are estimated for portfolios of loans with similar characteristics.

loans with similar characteristics.

Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other.

3 unchanged sentences

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time and Brokered Time Deposits

Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments.

28 unchanged sentences

Time deposits Level 3 762,487 759,589 785,430 779,997

Brokered time deposits Level 3 — — 144,880 144,944

Securities sold under agreements to repurchase Level 2 — — 28,969 28,969

29 unchanged sentences

The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer.

Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Collateral held varies, but may include real estate, accounts receivable, inventory, equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party.

13 unchanged sentences

In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements.

PLB Investments LLC, John Kuehner, and A.S.

Palmer Investments LLC v.

Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No.

1:20-cv-1023 (“Class Action”);

and Melanie E.

Damian, As Receiver of Today’s Growth Consultant, Inc.

(dba The Income Store) v.

Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No.

1:20-cv-7819 (“Receiver’s Action”)

The Bank was a defendant in the purported Class Action lawsuit that was filed on February 12, 2020, in the U.S.

District Court for the Northern District of Illinois.

The plaintiffs in the Class Action alleged that the Bank negligently enabled and facilitated a fraudulent, Ponzi-like scheme perpetrated by Today’s Growth Consultant, Inc.

(dba The Income Store) (“TGC”).

Additionally, the Receiver for TGC filed the Receiver’s Action on December 30, 2020, in the U.S.

District Court for the Northern District of Illinois, with similar allegations.

On February 20, 2023, the Bank reached an agreement in principle to settle both the Class Action and Receiver’s Action in which the Bank would make one-time cash payments totaling $ 13.0 million, without admitting fault, to release the Bank from further liability and claims in both the Class Action and Receiver’s Action.

On August 16, 2023, definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court, and the Bank made the one-time cash payments totaling $ 13.0 million during the third quarter of 2023.

The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action.

The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation.

The Company believes the settlements are in the best interests of the Company and its shareholders.

Accordingly, the Bank had $ 13.0 million accrued related to these matters as of December 31, 2022.

The Bank’s insurer reimbursed $ 7.4 million of the settlement payment which was recorded as an insurance recovery receivable as of December 31, 2022.

The net settlement amount of $ 5.6 million was included in other noninterest expense in the consolidated statements of income during the fourth quarter of 2022.

DeBaere, et al v.

7 unchanged sentences

On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al and Miller, et al cases in which the Bank would make one-time cash payments totaling $ 3.4 million, without admitting fault, to release the Bank from further liability and claims in both the cases.

HBT FINANCIAL, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court on December 15, 2023 in the DeBaere, et al case and on February 16, 2024 in the Miller, et al case.

The Bank made the one-time cash payments totaling $ 3.4 million during the fourth quarter of 2023.

The Bank made the one-time cash payments totaling $ 3.4 million during the year ended December 31, 2023.

1 unchanged sentence

The Company believes the settlements are in the best interests of the Company and its shareholders.

An initial $ 2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $ 0.8 million accrual was recognized in other noninterest expense during the second quarter of 2023, following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases.

An initial $ 2.6 million accrual was recognized in other noninterest expense during the year ended December 31, 2022, reflecting management’s best estimate at that time, and an additional $ 0.8 million accrual was recognized in other noninterest expense during the the year ended December 31, 2023, following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases.

John Pickett v.

4 unchanged sentences

A definitive settlement agreement reflecting the terms of the agreement in principle was approved by the Court on July 9, 2024.

The Bank made the one-time cash payment of $ 0.3 million during the third quarter of 2024.

The Bank made the one-time cash payment of $ 0.3 million during the year ended December 31, 2024.

The settlement does not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the case.

1 unchanged sentence

The Company believes the settlement is in the best interests of the Company and its shareholders.

An initial accrual of $ 0.2 million was recorded during the fourth quarter of 2023, reflecting management's best estimate at that time, and an additional $ 0.1 million accrual was recorded during the first quarter of 2024.

As of December 31, 2023, the Company had $ 0.2 million accrued related to this matter.

Heartland Bank and Trust Company v.

Meadows Mennonite Retirement Community Association, Inc.

This lawsuit arises out of a suit filed in the Circuit Court of Woodford County, Illinois, (the "Trial Court") by the Bank for breach of a note and commercial security agreement.

The defendant, Meadows Mennonite Retirement Community Association, Inc.

("Meadows"), a beneficiary of a trust for which Bank was trustee, filed a counterclaim for rescission of the note seeking compensatory and punitive damages, including attorneys’ fees.

In September 2024, the Appellate Court of Illinois Fourth District (the "Appellate Court") entered an order directing that summary judgment should be entered in favor of Meadows and against the Bank, rescinding the note and commercial security agreement.

The Appellate Court remanded the case to the Trial Court which will now determine Meadows' compensatory and punitive damages, including reasonable attorneys’ fees.

The Bank intends to vigorously defend the lawsuit.

However, the Company believes an unfavorable outcome is reasonably possible at this time, as that term is used in assessing loss contingencies.

The Company is unable to predict when the matter will be resolved or potential costs or damages to be incurred.

HBT FINANCIAL, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

An initial accrual of $ 0.2 million was recorded during the year ended December 31, 2023, reflecting management's best estimate at that time, and an additional $ 0.1 million accrual was recorded during the year ended December 31, 2024.

NOTE 24 - RELATED PARTY TRANSACTIONS

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Stock-based compensation 1,943 1,752 1,953

Loss on extinguishment of subordinated debt 391 — —

Amortization of discount and issuance costs on subordinated notes and debentures 116 139 139

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Proceeds from sales of equity securities — 20 —

Purchase of foreclosed assets from Heartland Bank — — ( 2,325 )

Proceeds from sale of foreclosed assets — — 2,888

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CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of subordinated notes ( 40,000 ) — —

Taxes paid related to the vesting of restricted stock units ( 691 ) ( 331 ) ( 181 )

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data