HBT Financial, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA HBT FINANCIAL, INC. AND SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID: 49 ) 79 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets 81 Consolidated Statements of Income 82 Consolidated Statements of Comprehensive Income 83 Consolidated Statements of Changes in Stockholders’ Equity 84 Consolidated Statements of Cash Flows 85 Notes to Consolidated Financial Statements 87 78 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of HBT Financial, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of HBT Financial, Inc. 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. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter 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 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. 79 Table of Contents Allowance for Credit Losses—Loans As described in Notes 1 and 4 to the financial statements, the Company’s allowance for credit losses totaled $41.7 million, which consists of a reserve on loans collectively evaluated for impairment of $39.6 million and a reserve on loans individually evaluated of $2.1 million at December 31, 2025. The allowance for credit losses is measured on a collective loan pool basis when similar risk characteristics exist. A loan may be evaluated on an individual basis based on disparate risk characteristics. 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 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 (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 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 We have served as the Company's auditor since 2017. Chicago, Illinois March 6, 2026 80 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) December 31, 2025 December 31, 2024 ASSETS Cash and due from banks $ 24,423 $ 29,552 Interest-bearing deposits with banks 97,846 108,140 Cash and cash equivalents 122,269 137,692 Debt securities available-for-sale, at fair value 813,101 698,049 Debt securities held-to-maturity (fair value of $ 426,799 at 2025 and $ 445,186 at 2024) 458,746 499,858 Equity securities with readily determinable fair value 3,322 3,315 Equity securities with no readily determinable fair value 2,612 2,629 Restricted stock, at cost 4,979 5,086 Loans held for sale 1,263 1,586 Loans, before allowance for credit losses 3,456,209 3,466,146 Allowance for credit losses ( 41,690 ) ( 42,044 ) Loans, net of allowance for credit losses 3,414,519 3,424,102 Bank owned life insurance 24,660 23,989 Bank premises and equipment, net 73,642 66,758 Bank premises held for sale — 317 Foreclosed assets 1,126 367 Goodwill 59,820 59,820 Intangible assets, net 15,117 17,843 Mortgage servicing rights, at fair value 16,944 18,827 Investments in unconsolidated subsidiaries 1,614 1,614 Accrued interest receivable 23,779 24,770 Other assets 33,877 46,280 Total assets $ 5,071,390 $ 5,032,902 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Noninterest-bearing $ 1,049,043 $ 1,046,405 Interest-bearing 3,310,220 3,271,849 Total deposits 4,359,263 4,318,254 Securities sold under agreements to repurchase — 28,969 Federal Home Loan Bank advances 12,301 13,231 Subordinated notes — 39,553 Junior subordinated debentures issued to capital trusts 52,909 52,849 Other liabilities 31,419 35,441 Total liabilities 4,455,892 4,488,297 COMMITMENTS AND CONTINGENCIES (Note 23) Stockholders' Equity Preferred stock, $ 0.01 par value; 25,000,000 shares authorized; none issued or outstanding — — Common stock, $ 0.01 par value; 125,000,000 shares authorized; shares issued of 32,899,104 at 2025 and 32,827,039 at 2024; shares outstanding of 31,431,924 at 2025 and 31,559,366 at 2024 329 328 Surplus 298,548 297,297 Retained earnings 367,163 316,764 Accumulated other comprehensive income (loss) ( 23,018 ) ( 46,765 ) Treasury stock at cost, 1,467,180 shares at 2025 and 1,267,673 at 2024 ( 27,524 ) ( 23,019 ) Total stockholders’ equity 615,498 544,605 Total liabilities and stockholders’ equity $ 5,071,390 $ 5,032,902 See accompanying Notes to Consolidated Financial Statements 81 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 INTEREST AND DIVIDEND INCOME Loans, including fees: Taxable $ 211,943 $ 210,340 $ 191,008 Federally tax exempt 4,878 4,523 4,189 Debt securities: Taxable 31,075 25,801 25,746 Federally tax exempt 1,839 2,102 4,225 Interest-bearing deposits in bank 5,502 8,272 3,020 Other interest and dividend income 547 662 811 Total interest and dividend income 255,784 251,700 228,999 INTEREST EXPENSE Deposits 51,689 56,047 25,135 Securities sold under agreements to repurchase 22 594 255 Borrowings 203 480 7,128 Subordinated notes 1,326 1,879 1,879 Junior subordinated debentures issued to capital trusts 3,649 3,850 3,530 Total interest expense 56,889 62,850 37,927 Net interest income 198,895 188,850 191,072 PROVISION FOR CREDIT LOSSES 3,161 3,031 7,573 Net interest income after provision for credit losses 195,734 185,819 183,499 NONINTEREST INCOME Card income 10,785 11,051 11,043 Wealth management fees 12,147 10,978 9,883 Service charges on deposit accounts 8,040 7,932 7,846 Mortgage servicing 4,113 4,437 4,678 Mortgage servicing rights fair value adjustment ( 1,883 ) ( 174 ) ( 1,615 ) Gains on sale of mortgage loans 1,477 1,611 1,526 Realized gains (losses) on sales of securities ( 200 ) ( 3,697 ) ( 1,820 ) Unrealized gains (losses) on equity securities 7 ( 59 ) 160 Gains (losses) on foreclosed assets 4 22 501 Gains (losses) on other assets ( 85 ) ( 635 ) 166 Income on bank owned life insurance 671 915 573 Other noninterest income 3,114 3,190 3,105 Total noninterest income 38,190 35,571 36,046 NONINTEREST EXPENSE Salaries 66,342 65,130 67,453 Employee benefits 13,538 11,311 10,037 Occupancy of bank premises 10,713 10,293 9,918 Furniture and equipment 2,280 2,004 2,790 Data processing 11,766 11,169 12,352 Marketing and customer relations 4,183 4,320 5,043 Amortization of intangible assets 2,726 2,839 2,670 Loss on extinguishment of debt 391 — — FDIC insurance 2,234 2,254 2,280 Loan collection and servicing 1,346 2,056 1,402 Foreclosed assets 169 109 251 Other noninterest expense 13,730 12,522 16,768 Total noninterest expense 129,418 124,007 130,964 INCOME BEFORE INCOME TAX EXPENSE 104,506 97,383 88,581 INCOME TAX EXPENSE 27,498 25,603 22,739 NET INCOME $ 77,008 $ 71,780 $ 65,842 EARNINGS PER SHARE - BASIC $ 2.44 $ 2.27 $ 2.08 EARNINGS PER SHARE - DILUTED $ 2.44 $ 2.26 $ 2.07 WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 31,502,351 31,590,117 31,626,308 See accompanying Notes to Consolidated Financial Statements 82 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, (dollars in thousands) 2025 2024 2023 NET INCOME $ 77,008 $ 71,780 $ 65,842 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 Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity 1,974 1,992 1,954 Unrealized gains on derivative instruments — 64 161 Reclassification adjustment for net settlements on derivative instruments ( 38 ) ( 348 ) ( 468 ) 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 83 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Common Stock Surplus Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Stockholders’ Equity (dollars in thousands, except per share data) Shares Outstanding Amount 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 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 ) Cash dividends and dividend equivalents ($ 0.68 per share) — — — ( 21,873 ) — — ( 21,873 ) Balance, December 31, 2023 31,695,828 327 295,877 269,051 ( 57,163 ) ( 18,596 ) 489,496 Cumulative effect of change in accounting principle (ASU 2023-02) — — — 116 — — 116 Net income — — — 71,780 — — 71,780 Other comprehensive income — — — — 10,398 — 10,398 Stock-based compensation — — 1,752 — — — 1,752 Issuance of common stock upon vesting of restricted stock units, net of tax withholdings 96,341 1 ( 332 ) — — — ( 331 ) Repurchase of common stock ( 232,803 ) — — — — ( 4,423 ) ( 4,423 ) Cash dividends and dividend equivalents ($ 0.76 per share) — — — ( 24,183 ) — — ( 24,183 ) Balance, December 31, 2024 31,559,366 328 297,297 316,764 ( 46,765 ) ( 23,019 ) 544,605 Net income — — — 77,008 — — 77,008 Other comprehensive income — — — — 23,747 — 23,747 Stock-based compensation — — 1,943 — — — 1,943 Issuance of common stock upon vesting of restricted stock units, net of tax withholdings 72,065 1 ( 692 ) — — — ( 691 ) Repurchase of common stock ( 199,507 ) — — — — ( 4,505 ) ( 4,505 ) Cash dividends and dividend equivalents ($ 0.84 per share) — — — ( 26,609 ) — — ( 26,609 ) Balance, December 31, 2025 31,431,924 $ 329 $ 298,548 $ 367,163 $ ( 23,018 ) $ ( 27,524 ) $ 615,498 See accompanying Notes to Consolidated Financial Statements 84 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (dollars in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 77,008 $ 71,780 $ 65,842 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 3,200 2,944 3,108 Provision for credit losses 3,161 3,031 7,573 Net amortization of debt securities 2,264 3,641 5,730 Deferred income tax expense 329 996 3,817 Stock-based compensation 1,943 1,752 1,953 Net accretion of discount and deferred loan fees on loans ( 7,117 ) ( 7,187 ) ( 7,228 ) Net realized loss on sales of securities 200 3,697 1,820 Net unrealized loss (gain) on equity securities ( 7 ) 59 ( 160 ) Net loss (gain) on disposals of bank premises and equipment 87 55 ( 84 ) Net gain on sales of bank premises held for sale ( 52 ) — ( 81 ) Impairment losses on bank premises held for sale 50 580 — Net gain on sales of foreclosed assets ( 155 ) ( 112 ) ( 764 ) Write-down of foreclosed assets 151 90 263 Amortization of intangibles 2,726 2,839 2,670 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 time deposits — ( 108 ) ( 400 ) Mortgage loans originated for sale ( 49,176 ) ( 62,649 ) ( 69,663 ) Proceeds from sale of mortgage loans 50,976 64,992 71,098 Net gain on sale of mortgage loans ( 1,477 ) ( 1,611 ) ( 1,526 ) Increase in cash surrender value of bank owned life insurance ( 671 ) ( 668 ) ( 566 ) Net gain on bank owned life insurance proceeds — ( 247 ) — 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 ) Net cash provided by operating activities 85,070 89,372 65,829 See accompanying Notes to Consolidated Financial Statements 85 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) Year Ended December 31, (dollars in thousands) 2025 2024 2023 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of interest-bearing time deposits with banks — 520 249 Purchase of interest-bearing time deposits with banks — ( 11 ) ( 509 ) Proceeds from sales of debt securities 4,125 69,174 185,280 Proceeds from sales and redemptions of equity securities 81 58 — Proceeds from paydowns, maturities, and calls of debt securities 186,386 126,340 102,625 Purchase of debt securities ( 234,264 ) ( 105,147 ) ( 2,640 ) Purchase of equity securities ( 64 ) ( 196 ) ( 397 ) Purchase of loans ( 9,782 ) ( 14,566 ) ( 61,009 ) Net decrease (increase) in loans 22,338 ( 42,623 ) ( 81,641 ) Purchase of restricted stock — — ( 23,832 ) Proceeds from redemption of restricted stock 107 2,074 27,459 Proceeds from bank owned life insurance — 831 — Purchases of bank premises and equipment ( 10,247 ) ( 5,506 ) ( 3,134 ) Proceeds from sales of bank premises and equipment 76 2 222 Proceeds from sales of bank premises held for sale 319 — 351 Proceeds from sales of foreclosed assets 1,285 1,396 4,093 Net cash paid for acquisition of Town and Country — — ( 14,454 ) Net cash provided by (used in) investing activities ( 39,640 ) 32,346 132,663 CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in deposits 41,009 ( 83,075 ) 94,396 Net decrease in repurchase agreements ( 28,969 ) ( 13,473 ) ( 639 ) 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 ) Repurchase of common stock ( 4,505 ) ( 4,423 ) ( 8,907 ) Cash dividends and dividend equivalents paid ( 26,609 ) ( 24,183 ) ( 21,873 ) Net cash used in financing activities ( 60,853 ) ( 125,278 ) ( 171,399 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 15,423 ) ( 3,560 ) 27,093 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 137,692 141,252 114,159 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 122,269 $ 137,692 $ 141,252 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $ 58,172 $ 64,723 $ 32,853 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 Transfers of loans to foreclosed assets $ 2,040 $ 889 $ 1,143 Transfers of bank premises and equipment to bank premises held for sale $ — $ 317 $ 35 See accompanying Notes to Consolidated Financial Statements 86 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Significant accounting policies are summarized below. Basis of Consolidation The consolidated financial statements of HBT Financial include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank. 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. Capital Trust B; Heartland Bancorp, Inc. Capital Trust C; Heartland Bancorp, Inc. Capital Trust D; FFBI Capital Trust I; National Bancorp Statutory Trust I; Town and Country Statutory Trust II; Town and Country Statutory Trust III; and West Plains Investors Statutory Trust I, which, in accordance with GAAP, are not consolidated as more fully described in Note 13. Significant intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses. Business and Significant Concentrations of Credit Risk The Company provides several types of loans to consumers, businesses, and municipal entities, primarily located in its customer service area. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Bank are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificates of deposit. Cash and Cash Equivalents 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, deposits, and short-term Federal Home Loan Bank ("FHLB") advances are reported net. Interest-Bearing Time Deposits with Banks Interest-bearing time deposits with banks are carried at cost. 87 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Debt securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on debt securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Interest income includes amortization of purchase premium or discount. Premiums and discounts on debt securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. Allowance for Credit Losses – Debt Securities Available-for-Sale For debt securities available-for-sale in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security amortized cost basis is written down to fair value through earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a security is confirmed or when either the criteria regarding intent or requirement to sell is met. Allowance for Credit Losses – Debt Securities Held-to-Maturity For debt securities held-to-maturity, the Company measures expected credit losses on a collective basis by major security type. Held-to-maturity securities are evaluated using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of provision for credit losses. The Company's U.S. government agency and agency mortgage-backed securities are explicitly or implicitly guaranteed by the U.S. government, and as such are excluded from the credit loss evaluation as the expectation of non-payment is zero. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the statements of income. 88 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Restricted Stock Restricted stock, which consists of FHLB stock, is carried at cost and evaluated for impairment. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on sale and thus quotes typically indicate fair value of the held for sale loans is greater than cost. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses. Amortized cost is the unpaid principal balance outstanding, adjusted for charge-offs, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due, unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for credit losses if accrued in a prior year. Amortization of related deferred loan fees or costs and any purchase premium or discount is also suspended at this time. The interest on these loans is accounted for on the cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, and the borrower must generally demonstrate at least 6 months of payment performance. Purchased Credit Deteriorated Loans Purchased credit deteriorated loans (“PCD loans”) are purchased loans, that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of a loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of a loan is a non-credit discount or premium which is amortized into interest income over the life of the loan. 89 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Non-Purchased Credit Deteriorated Loans Non-purchased credit deteriorated loans (“non-PCD loans”) are purchased loans, that, as of the date of acquisition, have not experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The loan’s purchase price becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of the loan is a discount or premium, which is comprised of a credit and non-credit component, and is accreted or amortized into interest income over the life of the loan. An allowance for credit losses is determined using the same methodology as other loans held for investment, but no "Day One" allowance for credit losses is established on the date of acquisition. Instead, a subsequent "Day Two" allowance for credit losses for non-PCD loans is recorded through the provision for credit losses, which reflects the estimated lifetime credit losses. Allowance for Credit Losses – Loans The allowance for credit losses for loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The Company’s estimate of the allowance for credit losses for loans reflects losses expected over the remaining contractual life of the loans, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Loans are charged off against the allowance for credit losses when management believes the uncollectibility of a loan balance is confirmed. Recoveries are recognized up to the aggregate amount of previously charged-off balances. The allowance for credit losses is established through provision for credit loss expense charged to income. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist. The Company has identified the following portfolio segments: Commercial and Industrial : Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Commercial Real Estate - Owner Occupied : Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied : Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. These loans are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments, or an overbuilt market, typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties may impact the credit quality of these loans. Construction and Land Development : Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long-term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. 90 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Multi-family : Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. One-to-four Family Residential : Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Agricultural and Farmland : Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. The credit quality of these loans is significantly influenced by changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Municipal, Consumer and Other : Loans to municipalities include obligations of municipal entities and loans sponsored by municipal entities for the benefit of a private entity where that private entity, rather than the municipal entity, is responsible for repayment of the obligation. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to non-depository financial institutions, as well as leases, are also included. The Company uses the discounted cash flow method to estimate expected credit losses for all loan segments, except for consumer loans. Under this method, cash flow projections at the instrument-level are adjusted for estimated prepayments, probability of default, loss given default, and time to recovery. These cash flow projections are discounted at the instrument-level effective yield to calculate the present value of expected cash flows. An allowance for credit losses is established for the difference between a pool's total amortized cost basis and present value of expected cash flows. The Company uses the weighted average remaining maturity method to estimate expected credit losses for consumer loans. Under this method, an expected loss rate is applied to an estimate of future outstanding balance balances of the pool. The Company uses regression analysis of historical internal and peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime probability of default in the discounted cash flow models and loss rates in the weighted average remaining maturity model. The analysis also determines how expected probability of default and loss rates will react to forecasted levels of the economic variables. In addition, qualitative adjustments are made for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As historical credit loss experience provides the basis for the estimation of expected credit losses for pooled loans, adjustments may be necessary to capture 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. Loans that do not share risk characteristics are evaluated on an individual basis. Loan evaluated individually are not also included in the pooled evaluation. When management determines that foreclosure is probable, or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for anticipated selling costs as appropriate. 91 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Although management believes the allowance for credit losses to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Allowance for Credit Losses Committee reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. In addition, the Company’s regulators review the adequacy of the allowance for credit losses and may require additions to the allowance for credit losses based on their judgment about information available at the time of their examinations. Unfunded Lending-related Commitments In the ordinary course of business, the Company has entered into commitments to extend credit, such as lines of credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Allowance for Credit Losses – Unfunded Lending-related Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded lending-related commitments is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credited losses on commitments expected to be funded over its estimated life. Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income. Bank Owned Life Insurance Bank owned life insurance represents life insurance policies on the lives of certain current and former employees and directors for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the consolidated balance sheets at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the consolidated statements of income. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using the straight-line method. Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. Bank premises classified as held for sale are not depreciated. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is 92 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell. Lease Obligations The Company leases certain bank premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease contract liabilities. The amount of right-of-use assets and associated lease contract liabilities recorded is based on the present value of future minimum lease payments. The discount rate used is equal to the rate implicit in the lease, when readily determinable, or the Company’s incremental borrowing rate at lease inception, on a collateralized basis over a similar term. Right-of-use assets are included in other assets and lease contract liabilities are included in other liabilities in the consolidated balance sheets and were insignificant as of December 31, 2025 and 2024. Foreclosed Assets When it appears likely that we will obtain title to real estate collateral, we develop an exit strategy by assessing overall market conditions, the current use and condition of the asset, and its highest and best use. If determined necessary to maximize value, we complete the necessary improvements or tenant stabilization tasks, with the applicable time value discount and improvement expenses incorporated into our estimates of the expected costs to sell. Substantially all foreclosed real estate is valued on an "as-is" basis. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less anticipated selling costs at the date of foreclosure, establishing a new cost basis. For foreclosed real estate, selling costs are generally estimated to be 7.0 % of the fair value. This estimate includes sales commissions and closing costs. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for credit losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for credit losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets. Costs to maintain and hold foreclosed assets are expensed. Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2025 and 2024, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Other identifiable intangible assets consist of core deposit intangible and customer relationship intangible assets with definite useful lives which are being amortized over 10 years. The Company will periodically review the status of core deposit intangible and customer relationship intangible assets for any events or circumstances which may change the recoverability of the underlying basis. Wealth Management Assets and Fees Assets of the wealth management department of the Bank are not included in the consolidated balance sheets as such assets are not assets of the Company or the Bank. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income. 93 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. The Company may also make discretionary matching contributions in an amount up to 5 % of compensation contributed by employees. Stock Based Compensation The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur. Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. Advertising Costs Advertising costs are expensed as incurred. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2025 and 2024, there are no material uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. 94 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Low Income Housing Tax Credits The Company holds an ownership interest in a limited liability company, as a limited partner, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $ 6.6 million as of December 31, 2025. Derivative Financial Instruments As part of the Company’s asset/liability management, the Company may use interest rate swaps to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities, or pools of assets or liabilities, and have high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability "cash flow" hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. The Company discontinues hedge accounting prospectively when (a) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is dedesignated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the balance sheet, with subsequent changes in its fair value recognized in current-period earnings. 95 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. 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 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. Fair Value of Financial Instruments Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in Note 22 – Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Revenue from Contracts with Customers ASC 606, Revenue from Contracts with Customers , requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The noninterest revenue streams that are considered to be in the scope of this guidance are discussed below. Card income: Consists of debit and credit card interchange fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. Payment is typically received daily. Wealth management fees: Consists of revenue from the management and advisement of financial client assets and non-financial client assets, such as farmland, and trust administration. The Company’s performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually. Service charges on deposit accounts: Consists of account analysis fees, monthly service fees, and other deposit account related fees. The Company’s performance obligation account analysis fees and monthly service fees are ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly. Other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for other deposit account related fees is primarily received immediately through a direct charge to customers’ accounts. 96 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity. Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued. Impact of Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology, commonly referred to as the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held-to-maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance, such as loan commitments and letters of credit. In addition, ASC 326 made changes to the accounting for debt securities available-for-sale. One such change is to require credit losses be presented as an allowance rather than as a write-down on debt securities available-for-sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $ 6.9 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The following table illustrates the impact of ASC 326 on the allowance for credit losses: January 1, 2023 (dollars in thousands) Pre-ASC 326 Adoption Impact of ASC 326 Adoption As Reported under ASC 326 Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ ( 822 ) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 97 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company also adopted ASC 326 using the prospective transition approach for purchase credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $ 0.2 million to the allowance for credit losses. The remaining noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2023. On January 1, 2024, the Company adopted ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) . ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $ 0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $ 7.2 million increase to other assets and other liabilities, as a result of the adoption. On January 1, 2024, the Company adopted ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method . ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard did not have an impact on the Company’s consolidated results of operations or financial position. On January 1, 2024, the Company adopted ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard did not have an impact on the Company’s consolidated results of operations or financial position. 98 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On January 1, 2024, the Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. Early adoption is permitted. This standard did not have an impact on the Company’s consolidated results of operations or financial position. On January 1, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. 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): Disaggregation of Income Statement Expenses . ASU 2024-03 provides more decision-useful information about a public entity's expenses by requiring additional detail on expenses reported in income statements. Under the ASU, public entities will provide detailed disclosure in interim and annual periods of specified categories underlying certain expense captions. The ASU requires public entities to apply the amendments prospectively, with an option to use retrospective application. The amendments in this update are effective for years beginning after December 15, 2026, and interim periods within fiscal years 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. 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. 99 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. 100 Table of Contents 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. Year Ended (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 $ 999 101 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Town and Country Financial Corporation On February 1, 2023, HBT Financial acquired 100 % of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity. At the effective time of the merger, each share of Town and Country 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) 1.9010 shares of HBT Financial’s common stock, or (ii) $ 35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $ 38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $ 21.12 on February 1, 2023, the aggregate transaction value was approximately $ 109.4 million. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Measurement period adjustments of $ 0.1 million were recorded in the third quarter of 2023 as more information became available regarding Town and Country's tax assets and liabilities. Goodwill of $ 30.5 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes. The acquisition of Town and Country further enhanced HBT Financial’s footprint in central Illinois, and expanded our footprint into metro-east St. Louis. 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. Year Ended (dollars in thousands) December 31, 2023 PROVISION FOR CREDIT LOSSES $ 5,924 NONINTEREST EXPENSE Salaries 3,584 Furniture and equipment 39 Data processing 2,031 Marketing and customer relations 24 Loan collection and servicing 125 Legal fees and other noninterest expense 1,964 Total noninterest expense 7,767 Total Town and Country acquisition-related expenses $ 13,691 102 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 23,542 Interest-bearing time deposits with banks 249 Debt securities 167,869 Equity securities 301 Restricted stock 2,822 Loans held for sale 1,612 Loans, before allowance for credit losses 635,376 Allowance for credit losses ( 1,247 ) Loans, net of allowance for credit losses 634,129 Bank owned life insurance 15,782 Bank premises and equipment 14,828 Foreclosed assets 271 Intangible assets 22,282 Mortgage servicing rights 10,469 Investments in unconsolidated subsidiaries 449 Accrued interest receivable 3,113 Other assets 8,940 Total assets acquired 906,658 Liabilities assumed: Deposits 720,417 FHLB advances 86,439 Junior subordinated debentures 14,949 Other liabilities 5,999 Total liabilities assumed 827,804 Net assets acquired $ 78,854 Consideration paid: Cash $ 37,996 Common stock 71,356 Total consideration paid $ 109,352 Goodwill $ 30,498 103 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Of the loans acquired, there were $ 89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands): Unpaid principal balance $ 89,822 Allowance for credit losses at acquisition ( 1,247 ) Non-credit discount ( 2,218 ) Purchase price $ 86,357 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 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. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. Pro Forma (dollars in thousands, except per share data) Year Ended December 31, 2023 Total revenues (net interest income and noninterest income) $ 230,171 Net income 66,056 Earnings per share - basic 2.07 Earnings per share - diluted 2.06 104 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 – SECURITIES Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows: December 31, 2025 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: U.S. Treasury $ 89,796 $ — $ ( 4,252 ) $ — $ 85,544 U.S. government agency 42,399 146 ( 1,123 ) — 41,422 Municipal 152,144 188 ( 12,062 ) — 140,270 Mortgage-backed: Agency residential 364,567 3,605 ( 7,377 ) — 360,795 Agency commercial 127,004 107 ( 7,174 ) — 119,937 Corporate 65,957 621 ( 1,445 ) — 65,133 Total available-for-sale $ 841,867 $ 4,667 $ ( 33,433 ) $ — $ 813,101 December 31, 2025 (dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses Held-to-maturity: U.S. government agency $ 88,496 $ — $ ( 4,850 ) $ 83,646 $ — Municipal 28,214 353 ( 58 ) 28,509 — Mortgage-backed: Agency residential 75,536 23 ( 2,544 ) 73,015 — Agency commercial 266,500 25 ( 24,896 ) 241,629 — Total held-to-maturity $ 458,746 $ 401 $ ( 32,348 ) $ 426,799 $ — 105 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: U.S. Treasury $ 119,690 $ — $ ( 8,545 ) $ — $ 111,145 U.S. government agency 55,742 — ( 2,544 ) — 53,198 Municipal 150,163 — ( 19,484 ) — 130,679 Mortgage-backed: Agency residential 241,342 253 ( 14,227 ) — 227,368 Agency commercial 128,823 3 ( 12,145 ) — 116,681 Corporate 61,732 156 ( 2,910 ) — 58,978 Total available-for-sale $ 757,492 $ 412 $ ( 59,855 ) $ — $ 698,049 December 31, 2024 (dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses Held-to-maturity: U.S. government agency $ 88,472 $ — $ ( 8,819 ) $ 79,653 $ — Municipal 35,862 48 ( 371 ) 35,539 — Mortgage-backed: Agency residential 85,643 — ( 5,796 ) 79,847 — Agency commercial 289,881 — ( 39,734 ) 250,147 — Total held-to-maturity $ 499,858 $ 48 $ ( 54,720 ) $ 445,186 $ — 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. The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2025, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year or less $ 34,128 $ 33,783 $ 7,330 $ 7,257 Due after 1 year through 5 years 173,366 163,765 52,682 51,407 Due after 5 years through 10 years 119,292 112,595 54,764 51,590 Due after 10 years 23,510 22,226 1,934 1,901 Mortgage-backed: Agency residential 364,567 360,795 75,536 73,015 Agency commercial 127,004 119,937 266,500 241,629 Total $ 841,867 $ 813,101 $ 458,746 $ 426,799 106 Table of Contents 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: December 31, 2025 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ — $ — $ ( 4,252 ) $ 85,544 $ ( 4,252 ) $ 85,544 U.S. government agency ( 18 ) 2,956 ( 1,105 ) 30,744 ( 1,123 ) 33,700 Municipal ( 35 ) 4,525 ( 12,027 ) 123,881 ( 12,062 ) 128,406 Mortgage-backed: Agency residential ( 231 ) 45,392 ( 7,146 ) 121,114 ( 7,377 ) 166,506 Agency commercial ( 7 ) 4,442 ( 7,167 ) 95,580 ( 7,174 ) 100,022 Corporate ( 57 ) 8,728 ( 1,388 ) 24,932 ( 1,445 ) 33,660 Total available-for-sale $ ( 348 ) $ 66,043 $ ( 33,085 ) $ 481,795 $ ( 33,433 ) $ 547,838 December 31, 2024 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ — $ — $ ( 8,545 ) $ 111,145 $ ( 8,545 ) $ 111,145 U.S. government agency ( 141 ) 7,594 ( 2,403 ) 45,604 ( 2,544 ) 53,198 Municipal ( 8 ) 2,634 ( 19,476 ) 127,776 ( 19,484 ) 130,410 Mortgage-backed: Agency residential ( 2,041 ) 81,055 ( 12,186 ) 129,178 ( 14,227 ) 210,233 Agency commercial ( 125 ) 3,327 ( 12,020 ) 112,118 ( 12,145 ) 115,445 Corporate ( 4 ) 1,996 ( 2,906 ) 43,064 ( 2,910 ) 45,060 Total available-for-sale $ ( 2,319 ) $ 96,606 $ ( 57,536 ) $ 568,885 $ ( 59,855 ) $ 665,491 As of December 31, 2025, there were 539 debt securities in an unrealized loss position for a period of twelve months or more, and 27 debt securities in an unrealized loss position for a period of less than twelve months. U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. 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. 107 Table of Contents 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. The remainder of the municipal securities are also of high credit quality with ratings of Aa2/AA or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. 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. Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. As of December 31, 2025, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities. 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. Sales of debt securities were as follows during the year ended December 31: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Proceeds from sales $ 4,125 $ 69,174 $ 185,280 Gross realized gains — — — Gross realized losses ( 200 ) ( 3,697 ) ( 1,820 ) 108 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses were as follows: December 31, 2025 (dollars in thousands) Readily Determinable Fair Value No Readily Determinable Fair Value Initial cost $ 3,124 $ 2,981 Cumulative net unrealized gains (losses) 198 ( 369 ) Carrying value $ 3,322 $ 2,612 December 31, 2024 (dollars in thousands) Readily Determinable Fair Value No Readily Determinable Fair Value Initial cost $ 3,124 $ 2,998 Cumulative net unrealized gains (losses) 191 ( 369 ) Carrying value $ 3,315 $ 2,629 As of December 31, 2025 and December 31, 2024, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $ 0.2 million and downward adjustments based on observable price changes of an identical investment of $ 0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value. Unrealized gains (losses) on equity securities were as follows during the years ended December 31, 2025 and 2024: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Readily determinable fair value $ 7 $ ( 25 ) $ 330 No readily determinable fair value — ( 34 ) ( 170 ) Unrealized gains (losses) on equity securities $ 7 $ ( 59 ) $ 160 109 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES Major categories of loans are summarized as follows: (dollars in thousands) December 31, 2025 December 31, 2024 Commercial and industrial $ 399,760 $ 428,389 Commercial real estate - owner occupied 320,434 322,316 Commercial real estate - non-owner occupied 937,094 899,565 Construction and land development 280,254 374,657 Multi-family 544,941 431,524 One-to-four family residential 445,463 463,968 Agricultural and farmland 275,251 293,375 Municipal, consumer, and other 253,012 252,352 Loans, before allowance for credit losses 3,456,209 3,466,146 Allowance for credit losses ( 41,690 ) ( 42,044 ) Loans, net of allowance for credit losses $ 3,414,519 $ 3,424,102 Allowance for Credit Losses Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. 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, 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. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses. 110 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables detail activity in the allowance for credit losses: (dollars in thousands) Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-owner Occupied Construction and Land Development Multi-Family One-to-four Family Residential Agricultural and Farmland Municipal, Consumer, and Other Total Balance, December 31, 2022 $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 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 ) Recoveries 59 18 268 53 281 186 6 308 1,179 Balance, December 31, 2023 4,980 2,272 7,714 5,998 3,837 5,204 975 9,068 40,048 Provision for credit losses 1,677 825 3,407 ( 1,699 ) 682 ( 1,438 ) 246 54 3,754 Charge-offs ( 1,448 ) ( 6 ) — — ( 188 ) ( 298 ) ( 62 ) ( 1,282 ) ( 3,284 ) Recoveries 148 16 586 3 — 440 11 322 1,526 Balance, December 31, 2024 5,357 3,107 11,707 4,302 4,331 3,908 1,170 8,162 42,044 Provision for credit losses 3,468 1,364 ( 3,002 ) ( 472 ) 1,233 ( 164 ) ( 461 ) 138 2,104 Charge-offs ( 2,449 ) ( 125 ) — ( 8 ) ( 80 ) ( 548 ) ( 24 ) ( 627 ) ( 3,861 ) Recoveries 599 37 — 77 — 339 73 278 1,403 Balance, December 31, 2025 $ 6,975 $ 4,383 $ 8,705 $ 3,899 $ 5,484 $ 3,535 $ 758 $ 7,951 $ 41,690 111 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Gross charge-offs, further sorted by origination year, were as follows during the year ended December 31, 2025 and 2024. Gross Charge-Offs for the Year Ended December 31, 2025 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total (dollars in thousands) 2025 2024 2023 2022 2021 Prior Commercial and industrial $ 12 $ 1 $ 905 $ 195 $ 46 $ — $ 1,290 $ — $ 2,449 Commercial real estate - owner occupied — — 124 — 1 — — — 125 Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — 2 — 2 — 4 — — 8 Multi-family — 80 — — — — — — 80 One-to-four family residential — 20 — 45 — 480 3 — 548 Agricultural and farmland — 9 — — — — 15 — 24 Municipal, consumer, and other 371 75 2 — — — 179 — 627 Total $ 383 $ 187 $ 1,031 $ 242 $ 47 $ 484 $ 1,487 $ — $ 3,861 Gross Charge-Offs for the Year Ended December 31, 2024 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total (dollars in thousands) 2024 2023 2022 2021 2020 Prior Commercial and industrial $ — $ 1,264 $ 75 $ — $ — $ 11 $ 98 $ — $ 1,448 Commercial real estate - owner occupied 6 — — — — — — — 6 Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — — — — — — — — — Multi-family — — — 188 — — — — 188 One-to-four family residential — 1 8 15 4 182 88 — 298 Agricultural and farmland — — 44 — — — 18 — 62 Municipal, consumer, and other 415 63 11 — — 529 264 — 1,282 Total $ 421 $ 1,328 $ 138 $ 203 $ 4 $ 722 $ 468 $ — $ 3,284 112 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables present loans and the related allowance for credit losses by category: December 31, 2025 (dollars in thousands) Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-owner Occupied Construction and Land Development Multi-Family One-to-four Family Residential Agricultural and Farmland Municipal, Consumer, and Other Total Loan balances: Collectively evaluated for impairment $ 398,573 $ 318,669 $ 932,972 $ 280,254 $ 544,941 $ 442,029 $ 274,086 $ 239,364 $ 3,430,888 Individually evaluated for impairment 1,187 1,765 4,122 — — 3,434 1,165 13,648 25,321 Total $ 399,760 $ 320,434 $ 937,094 $ 280,254 $ 544,941 $ 445,463 $ 275,251 $ 253,012 $ 3,456,209 Allowance for credit losses: Collectively evaluated for impairment $ 6,739 $ 3,764 $ 8,705 $ 3,899 $ 5,484 $ 3,525 $ 758 $ 6,691 $ 39,565 Individually evaluated for impairment 236 619 — — — 10 — 1,260 2,125 Total $ 6,975 $ 4,383 $ 8,705 $ 3,899 $ 5,484 $ 3,535 $ 758 $ 7,951 $ 41,690 December 31, 2024 (dollars in thousands) Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-owner Occupied Construction and Land Development Multi-Family One-to-four Family Residential Agricultural and Farmland Municipal, Consumer, and Other Total Loan balances: Collectively evaluated for impairment $ 427,737 $ 322,159 $ 884,832 $ 374,408 $ 431,432 $ 459,790 $ 293,240 $ 241,765 $ 3,435,363 Individually evaluated for impairment 652 157 14,733 249 92 4,178 135 10,587 30,783 Total $ 428,389 $ 322,316 $ 899,565 $ 374,657 $ 431,524 $ 463,968 $ 293,375 $ 252,352 $ 3,466,146 Allowance for credit losses: Collectively evaluated for impairment $ 5,344 $ 3,107 $ 11,201 $ 4,269 $ 4,239 $ 3,747 $ 1,170 $ 5,901 $ 38,978 Individually evaluated for impairment 13 — 506 33 92 161 — 2,261 3,066 Total $ 5,357 $ 3,107 $ 11,707 $ 4,302 $ 4,331 $ 3,908 $ 1,170 $ 8,162 $ 42,044 113 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans: December 31, 2025 Amortized Cost Allowance for Credit Losses Primary Collateral Type (dollars in thousands) Real Estate Vehicles Other Total Commercial and industrial $ — $ 362 $ 825 $ 1,187 $ 236 Commercial real estate - owner occupied 1,765 — — 1,765 619 Commercial real estate - non-owner occupied 4,122 — — 4,122 — Construction and land development — — — — — Multi-family — — — — — One-to-four family residential 3,434 — — 3,434 10 Agricultural and farmland 736 — 429 1,165 — Municipal, consumer, and other 9,768 — 3,880 13,648 1,260 Total $ 19,825 $ 362 $ 5,134 $ 25,321 $ 2,125 December 31, 2024 Amortized Cost Allowance for Credit Losses Primary Collateral Type (dollars in thousands) Real Estate Vehicles Other Total Commercial and industrial $ — $ 627 $ 25 $ 652 $ 13 Commercial real estate - owner occupied 157 — — 157 — Commercial real estate - non-owner occupied 14,733 — — 14,733 506 Construction and land development 249 — — 249 33 Multi-family 92 — — 92 92 One-to-four family residential 4,178 — — 4,178 161 Agricultural and farmland — — 135 135 — Municipal, consumer, and other 10,569 5 13 10,587 2,261 Total $ 29,978 $ 632 $ 173 $ 30,783 $ 3,066 Accrued interest on loans is excluded from the estimate of credit losses and totaled $ 18.2 million and $ 19.6 million as of December 31, 2025 and 2024, respectively. 114 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Past Due and Nonaccrual Status Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. 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. The following tables present loans by category based on current payment and accrual status: December 31, 2025 Accruing Interest (dollars in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Nonaccrual Total Loans Commercial and industrial $ 397,254 $ 1,319 $ — $ 1,187 $ 399,760 Commercial real estate - owner occupied 318,094 575 — 1,765 320,434 Commercial real estate - non-owner occupied 934,230 2,864 — — 937,094 Construction and land development 279,980 274 — — 280,254 Multi-family 544,941 — — — 544,941 One-to-four family residential 440,247 1,782 — 3,434 445,463 Agricultural and farmland 274,086 — — 1,165 275,251 Municipal, consumer, and other 252,814 193 — 5 253,012 Total $ 3,441,646 $ 7,007 $ — $ 7,556 $ 3,456,209 December 31, 2024 Accruing Interest (dollars in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Nonaccrual Total Loans Commercial and industrial $ 425,859 $ 1,878 $ — $ 652 $ 428,389 Commercial real estate - owner occupied 321,805 354 — 157 322,316 Commercial real estate - non-owner occupied 897,445 299 — 1,821 899,565 Construction and land development 373,933 475 — 249 374,657 Multi-family 431,432 — — 92 431,524 One-to-four family residential 459,069 721 — 4,178 463,968 Agricultural and farmland 293,231 9 — 135 293,375 Municipal, consumer, and other 251,798 182 4 368 252,352 Total $ 3,454,572 $ 3,918 $ 4 $ 7,652 $ 3,466,146 115 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables present nonaccrual loans with and without a related allowance for credit losses: December 31, 2025 (dollars in thousands) Nonaccrual With Allowance for Credit Losses Nonaccrual With No Allowance for Credit Losses Total Nonaccrual Commercial and industrial $ 565 $ 622 $ 1,187 Commercial real estate - owner occupied 886 879 1,765 Commercial real estate - non-owner occupied — — — Construction and land development — — — Multi-family — — — One-to-four family residential 133 3,301 3,434 Agricultural and farmland — 1,165 1,165 Municipal, consumer, and other — 5 5 Total $ 1,584 $ 5,972 $ 7,556 December 31, 2024 (dollars in thousands) Nonaccrual With Allowance for Credit Losses Nonaccrual With No Allowance for Credit Losses Total Nonaccrual Commercial and industrial $ 185 $ 467 $ 652 Commercial real estate - owner occupied — 157 157 Commercial real estate - non-owner occupied — 1,821 1,821 Construction and land development 216 33 249 Multi-family 92 — 92 One-to-four family residential 654 3,524 4,178 Agricultural and farmland — 135 135 Municipal, consumer, and other — 368 368 Total $ 1,147 $ 6,505 $ 7,652 116 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Credit Quality Indicators 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. 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: Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a special mention, substandard, or doubtful classification. Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms. Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. There were no loans classified as doubtful as of December 31, 2025 and December 31, 2024. 117 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables present loans by category based on their assigned risk ratings determined by management: December 31, 2025 (dollars in thousands) Pass Pass-Watch Special Mention Substandard Total Commercial and industrial $ 369,941 $ 18,960 $ 2,591 $ 8,268 $ 399,760 Commercial real estate - owner occupied 291,831 17,681 3,774 7,148 320,434 Commercial real estate - non-owner occupied 889,380 33,391 308 14,015 937,094 Construction and land development 269,932 540 975 8,807 280,254 Multi-family 503,133 41,808 — — 544,941 One-to-four family residential 431,553 5,741 1,646 6,523 445,463 Agricultural and farmland 246,820 13,625 2,494 12,312 275,251 Municipal, consumer, and other 239,322 20 — 13,670 253,012 Total $ 3,241,912 $ 131,766 $ 11,788 $ 70,743 $ 3,456,209 December 31, 2024 (dollars in thousands) Pass Pass-Watch Special Mention Substandard Total Commercial and industrial $ 404,779 $ 16,429 $ 1,957 $ 5,224 $ 428,389 Commercial real estate - owner occupied 297,150 14,969 2,713 7,484 322,316 Commercial real estate - non-owner occupied 843,487 21,594 — 34,484 899,565 Construction and land development 351,657 1,376 20,847 777 374,657 Multi-family 411,842 3,855 15,735 92 431,524 One-to-four family residential 448,869 6,641 710 7,748 463,968 Agricultural and farmland 269,926 18,154 521 4,774 293,375 Municipal, consumer, and other 236,686 929 4,107 10,630 252,352 Total $ 3,264,396 $ 83,947 $ 46,590 $ 71,213 $ 3,466,146 118 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2025: (dollars in thousands) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total 2025 2024 2023 2022 2021 Prior Commercial and industrial Pass $ 45,966 $ 46,995 $ 39,709 $ 30,655 $ 7,983 $ 15,680 $ 171,444 $ 11,509 $ 369,941 Pass-Watch 457 145 1,328 254 821 12 15,847 96 18,960 Special Mention 134 — 36 331 — — 255 1,835 2,591 Substandard 198 514 743 1,122 110 705 3,821 1,055 8,268 Total $ 46,755 $ 47,654 $ 41,816 $ 32,362 $ 8,914 $ 16,397 $ 191,367 $ 14,495 $ 399,760 Commercial real estate - owner occupied Pass $ 53,050 $ 59,585 $ 20,402 $ 47,115 $ 43,983 $ 50,548 $ 16,267 $ 881 $ 291,831 Pass-Watch 4,739 1,352 199 1,729 1,897 681 7,084 — 17,681 Special Mention 2,274 — — — — — 1,500 — 3,774 Substandard 2,267 — 158 1,842 1,146 713 457 565 7,148 Total $ 62,330 $ 60,937 $ 20,759 $ 50,686 $ 47,026 $ 51,942 $ 25,308 $ 1,446 $ 320,434 Commercial real estate - non-owner occupied Pass $ 224,400 $ 73,631 $ 93,259 $ 193,916 $ 189,265 $ 91,394 $ 21,926 $ 1,589 $ 889,380 Pass-Watch 7,645 5,704 391 1,693 2,898 14,314 746 — 33,391 Special Mention — 42 — — 266 — — — 308 Substandard 11,307 — 194 — — 2,514 — — 14,015 Total $ 243,352 $ 79,377 $ 93,844 $ 195,609 $ 192,429 $ 108,222 $ 22,672 $ 1,589 $ 937,094 Construction and land development Pass $ 162,752 $ 56,846 $ 24,151 $ 1,460 $ 12,853 $ 676 $ 10,970 $ 224 $ 269,932 Pass-Watch 18 245 — — — 16 — 261 540 Special Mention — — 274 — — — — 701 975 Substandard — — — 8,758 — 49 — — 8,807 Total $ 162,770 $ 57,091 $ 24,425 $ 10,218 $ 12,853 $ 741 $ 10,970 $ 1,186 $ 280,254 Multi-family Pass $ 175,366 $ 73,457 $ 45,977 $ 70,197 $ 81,169 $ 53,452 $ 2,483 $ 1,032 $ 503,133 Pass-Watch — — 11,990 29,246 572 — — — 41,808 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 175,366 $ 73,457 $ 57,967 $ 99,443 $ 81,741 $ 53,452 $ 2,483 $ 1,032 $ 544,941 One-to-four family residential Pass $ 75,509 $ 25,965 $ 65,431 $ 69,197 $ 56,878 $ 71,763 $ 61,555 $ 5,255 $ 431,553 Pass-Watch 151 146 632 761 1,089 2,498 233 231 5,741 Special Mention 31 — 598 902 — — — 115 1,646 Substandard 435 187 484 353 279 4,486 22 277 6,523 Total $ 76,126 $ 26,298 $ 67,145 $ 71,213 $ 58,246 $ 78,747 $ 61,810 $ 5,878 $ 445,463 Agricultural and farmland Pass $ 47,469 $ 28,223 $ 27,972 $ 15,041 $ 25,152 $ 20,220 $ 82,342 $ 401 $ 246,820 Pass-Watch 2,367 513 1,047 2,066 868 805 5,878 81 13,625 Special Mention 1,253 — 8 — 5 — 1,148 80 2,494 Substandard 600 331 2,325 1,819 903 3,094 1,687 1,553 12,312 Total $ 51,689 $ 29,067 $ 31,352 $ 18,926 $ 26,928 $ 24,119 $ 91,055 $ 2,115 $ 275,251 119 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total 2025 2024 2023 2022 2021 Prior Municipal, consumer, and other Pass $ 58,427 $ 25,595 $ 17,346 $ 17,779 $ 21,868 $ 43,957 $ 54,349 $ 1 $ 239,322 Pass-Watch 17 — — — — 1 2 — 20 Special Mention — — — — — — — — — Substandard 7 5 3 1 9 13,643 2 — 13,670 Total $ 58,451 $ 25,600 $ 17,349 $ 17,780 $ 21,877 $ 57,601 $ 54,353 $ 1 $ 253,012 Total by risk rating Pass $ 842,939 $ 390,297 $ 334,247 $ 445,360 $ 439,151 $ 347,690 $ 421,336 $ 20,892 $ 3,241,912 Pass-Watch 15,394 8,105 15,587 35,749 8,145 18,327 29,790 669 131,766 Special Mention 3,692 42 916 1,233 271 — 2,903 2,731 11,788 Substandard 14,814 1,037 3,907 13,895 2,447 25,204 5,989 3,450 70,743 Total $ 876,839 $ 399,481 $ 354,657 $ 496,237 $ 450,014 $ 391,221 $ 460,018 $ 27,742 $ 3,456,209 120 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2024: (dollars in thousands) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total 2024 2023 2022 2021 2020 Prior Commercial and industrial Pass $ 46,635 $ 43,007 $ 44,701 $ 11,617 $ 17,913 $ 41,397 $ 197,516 $ 1,993 $ 404,779 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 Total $ 47,110 $ 46,511 $ 46,175 $ 13,632 $ 17,913 $ 43,172 $ 210,299 $ 3,577 $ 428,389 Commercial real estate - owner occupied Pass $ 63,546 $ 23,607 $ 56,509 $ 48,867 $ 39,679 $ 44,108 $ 19,766 $ 1,068 $ 297,150 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 Total $ 72,720 $ 24,702 $ 60,713 $ 54,835 $ 41,462 $ 45,993 $ 20,823 $ 1,068 $ 322,316 Commercial real estate - non-owner occupied Pass $ 92,125 $ 108,688 $ 245,168 $ 222,479 $ 84,054 $ 65,935 $ 23,425 $ 1,613 $ 843,487 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 Total $ 118,543 $ 118,300 $ 251,824 $ 226,510 $ 86,496 $ 72,854 $ 23,425 $ 1,613 $ 899,565 Construction and land development Pass $ 181,274 $ 73,773 $ 65,045 $ 21,542 $ 590 $ 693 $ 8,228 $ 512 $ 351,657 Pass-Watch — — — — — 18 697 661 1,376 Special Mention — — 8,750 12,097 — — — — 20,847 Substandard 475 — 216 — — 86 — — 777 Total $ 181,749 $ 73,773 $ 74,011 $ 33,639 $ 590 $ 797 $ 8,925 $ 1,173 $ 374,657 Multi-family Pass $ 46,969 $ 80,450 $ 88,823 $ 101,284 $ 50,652 $ 40,839 $ 2,375 $ 450 $ 411,842 Pass-Watch 2,791 — 567 — — 492 — 5 3,855 Special Mention 6,936 — — — 8,799 — — — 15,735 Substandard 92 — — — — — — — 92 Total $ 56,788 $ 80,450 $ 89,390 $ 101,284 $ 59,451 $ 41,331 $ 2,375 $ 455 $ 431,524 One-to-four family residential Pass $ 44,914 $ 87,184 $ 79,834 $ 71,466 $ 57,258 $ 43,455 $ 59,446 $ 5,312 $ 448,869 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 Total $ 46,321 $ 88,977 $ 81,631 $ 72,773 $ 58,163 $ 50,531 $ 59,596 $ 5,976 $ 463,968 Agricultural and farmland Pass $ 42,272 $ 35,593 $ 32,146 $ 28,714 $ 27,865 $ 7,656 $ 94,977 $ 703 $ 269,926 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 $ 293,375 121 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Total 2024 2023 2022 2021 2020 Prior Municipal, consumer, and other Pass $ 77,779 $ 37,678 $ 14,475 $ 23,204 $ 12,479 $ 37,460 $ 33,611 $ — $ 236,686 Pass-Watch 103 50 6 12 — 757 1 — 929 Special Mention — — — — — 4,107 — — 4,107 Substandard 21 5 33 — — 10,570 1 — 10,630 Total $ 77,903 $ 37,733 $ 14,514 $ 23,216 $ 12,479 $ 52,894 $ 33,613 $ — $ 252,352 Total by risk rating Pass $ 595,514 $ 489,980 $ 626,701 $ 529,173 $ 290,490 $ 281,543 $ 439,344 $ 11,651 $ 3,264,396 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 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, 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 Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $ 1.42 billion and $ 1.55 billion as of December 31, 2025 and 2024, respectively. Activity in mortgage servicing rights was as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Beginning balance $ 18,827 $ 19,001 $ 10,147 Acquired — — 10,469 Capitalized servicing rights 592 726 726 Fair value adjustments attributable to payments and principal reductions ( 2,128 ) ( 2,083 ) ( 2,110 ) Fair value adjustments attributable to changes in valuation inputs and assumptions ( 347 ) 1,183 ( 231 ) Ending balance $ 16,944 $ 18,827 $ 19,001 122 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 - BANK PREMISES AND EQUIPMENT Bank premises and equipment are stated at cost less accumulated depreciation as follows: (dollars in thousands) December 31, 2025 December 31, 2024 Land, buildings, and improvements $ 105,283 $ 98,426 Furniture, fixtures, and equipment 20,465 26,270 Total bank premises and equipment 125,748 124,696 Less accumulated depreciation 52,106 57,938 Total bank premises and equipment, net $ 73,642 $ 66,758 Depreciation expense by category is as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Buildings and improvements $ 2,197 $ 1,990 $ 1,879 Furniture, fixtures, and equipment 1,003 954 1,229 Total depreciation expense $ 3,200 $ 2,944 $ 3,108 NOTE 7 – FORECLOSED ASSETS Foreclosed assets activity was as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Beginning balance $ 367 $ 852 $ 3,030 Acquired — — 271 Transfers from loans 2,040 889 1,143 Proceeds from sales ( 1,285 ) ( 1,396 ) ( 4,093 ) Net gain on sales 155 112 764 Direct write-downs ( 151 ) ( 90 ) ( 263 ) Ending balance $ 1,126 $ 367 $ 852 Gains (losses) on foreclosed assets included the following: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Direct write-downs $ ( 151 ) $ ( 90 ) $ ( 263 ) Net gain on sales 155 112 764 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. As of December 31, 2025, there were 3 one-to-four family residential real estate loans in the process of foreclosure totaling $ 0.2 million. 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. 123 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS The Company did not record additions to goodwill for the years ended December 31, 2025 and 2024. During the year ended December 31, 2023, the Company recorded goodwill of $ 30.5 million related to the acquisition of Town and Country. The following table summarizes the changes in the Company's intangible assets: Year Ended December 31, 2025 2024 2023 (dollars in thousands) Core Deposit Intangible Customer Relationship Intangible Core Deposit Intangible Customer Relationship Intangible Core Deposit Intangible Customer Relationship Intangible Beginning balance $ 17,035 $ 808 $ 19,774 $ 908 $ 1,070 $ — Additions — — — — 21,282 1,000 Amortization ( 2,626 ) ( 100 ) ( 2,739 ) ( 100 ) ( 2,578 ) ( 92 ) Ending balance $ 14,409 $ 708 $ 17,035 $ 808 $ 19,774 $ 908 Accumulated amortization $ 28,790 $ 292 $ 26,164 $ 192 $ 23,425 $ 92 Amortization of intangible assets for the years subsequent to December 31, 2025 is expected to be as follows (dollars in thousands): Year ended December 31, 2026 $ 2,411 2027 2,338 2028 2,255 2029 2,162 2030 2,056 Thereafter 3,895 Total $ 15,117 NOTE 9 – DEPOSITS The Company’s deposits are summarized below: (dollars in thousands) December 31, 2025 December 31, 2024 Noninterest-bearing deposits $ 1,049,043 $ 1,046,405 Interest-bearing deposits: Interest-bearing demand 1,144,416 1,099,061 Money market 839,097 820,825 Savings 564,220 566,533 Time 762,487 785,430 Total interest-bearing deposits 3,310,220 3,271,849 Total deposits $ 4,359,263 $ 4,318,254 124 Table of Contents 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. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $ 445.7 million and $ 455.2 million as of December 31, 2025 and 2024, respectively. The components of interest expense on deposits were as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Interest-bearing demand $ 6,498 $ 5,499 $ 3,130 Money market 18,112 18,637 7,352 Savings 1,540 1,621 1,033 Time 25,539 28,183 10,784 Brokered — 2,107 2,836 Total interest expense on deposits $ 51,689 $ 56,047 $ 25,135 At December 31, 2025, the scheduled maturities of time deposits are as follows (dollars in thousands): Year ended December 31, 2026 $ 708,504 2027 42,744 2028 6,192 2029 2,646 2030 2,240 Thereafter 161 Total $ 762,487 NOTE 10 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Information pertaining to securities sold under agreements to repurchase is as follows: (dollars in thousands) December 31, 2025 December 31, 2024 Balance at end of year $ — $ 28,969 Weighted average rate as of end of year — % 2.58 % Fair value of securities underlying the agreements $ — $ 34,335 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. 125 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 11 - BORROWINGS FHLB advances totaled $ 12.3 million with a weighted average interest rate of 0.66 % as of December 31, 2025 and totaled $ 13.2 million with a weighted average interest rate of 0.54 % as of December 31, 2024. The FHLB advances outstanding as of December 31, 2025 mature between 2026 and 2030. Borrowings from the FHLB are secured by the FHLB stock held by the Company and pledged security in the form of qualifying loans. The loans pledged as of December 31, 2025 and 2024 totaled $ 1.96 billion and $ 1.91 billion, respectively. 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, 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. Available borrowings are based on the collateral pledged. 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. NOTE 12 - SUBORDINATED NOTES The face value and carrying value of the subordinated notes are summarized below: (dollars in thousands) December 31, 2025 December 31, 2024 Subordinated notes, at face value $ — $ 40,000 Unamortized issuance costs — ( 447 ) 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. 126 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company owns all of the outstanding stock of the subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“junior subordinated debentures”) issued by the Company. These junior subordinated debentures are the only assets of the trusts and the interest payments from the junior subordinated debentures finance the distributions paid on the capital securities. The junior subordinated debentures are unsecured, rank junior and subordinate in the right of payment to all senior debt of the Company, and have an optional redemption in whole or in part on any interest payment date. In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements. The face values and carrying values of the junior subordinated debentures are summarized as follows: Carrying Value (dollars in thousands) Face Value December 31, 2025 December 31, 2024 Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,985 4,919 Town and Country Statutory Trust II 4,124 4,347 4,374 Town and Country Statutory Trust III 7,732 7,601 7,590 West Plains Investors Statutory Trust I 3,093 2,984 2,974 Total $ 53,714 $ 52,909 $ 52,849 The interest rates on the junior subordinated debentures are variable, reset quarterly, and are equal to the three-month term SOFR, as determined on the SOFR Determination Date immediately preceding the Distribution Payment Date specific to each junior subordinated debenture, plus a fixed percentage. The interest rates and maturities of the junior subordinated debentures are summarized as follows: Interest Rate at Variable Interest Rate December 31, 2025 December 31, 2024 Maturity Date Heartland Bancorp, Inc. Capital Trust B SOFR plus 3.01 % 6.92 % 7.67 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C SOFR plus 1.79 5.51 6.15 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D SOFR plus 1.61 5.33 5.97 September 15, 2037 FFBI Capital Trust I SOFR plus 3.06 6.97 7.72 April 6, 2034 National Bancorp Statutory Trust I SOFR plus 3.16 6.88 7.52 December 15, 2037 Town and Country Statutory Trust II SOFR plus 3.05 6.76 7.40 March 17, 2034 Town and Country Statutory Trust III SOFR plus 1.94 5.66 6.30 March 22, 2037 West Plains Investors Statutory Trust I SOFR plus 1.71 5.43 6.07 June 15, 2037 127 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest on the junior subordinated debentures at any time by extending the interest payment period for a period not exceeding 20 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the junior subordinated debentures. The capital securities are subject to mandatory redemption upon payment of the junior subordinated debentures and carry an interest rate identical to that of the related debenture. The junior subordinated debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the junior subordinated debentures or the capital securities. If the junior subordinated debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. 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. 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. As of December 31, 2025 and 2024, 100 % of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005. NOTE 14 – DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Interest Rate Swaps Designated as Cash Flow Hedges 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 agreement designated as a cash flow hedge was as follows: December 31, 2025 December 31, 2024 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Fair value recorded in other assets $ — $ — $ 7,000 $ 38 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: Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss) Year Ended December 31, (dollars in thousands) 2025 2024 2023 Designated as cash flow hedges: Junior subordinated debentures interest expense $ 38 $ 348 $ 468 128 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Interest Rate Swaps Not Designated as Hedging Instruments The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. The interest rate swap agreements not designated as hedging instruments were as follows: December 31, 2025 December 31, 2024 (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Fair value recorded in other assets: Interest rate swaps with a commercial borrower counterparty $ 6,344 $ 75 $ — $ — Interest rate swaps with a financial institution counterparty 73,011 2,915 79,416 5,515 Total fair value recorded in other assets $ 79,355 $ 2,990 $ 79,416 $ 5,515 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 73,011 $ ( 2,915 ) $ 79,416 $ ( 5,515 ) Interest rate swaps with a financial institution counterparty 6,344 ( 75 ) — — Total fair value recorded in other liabilities $ 79,355 $ ( 2,990 ) $ 79,416 $ ( 5,515 ) As of December 31, 2025, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2040. The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income was as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Not designated as hedging instruments: Gross gains $ 4,335 $ 10,781 $ 11,198 Gross losses ( 4,335 ) ( 10,781 ) ( 11,198 ) Net gains (losses) $ — $ — $ — 129 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Risk Participation Agreements 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. The risk participation agreement matures in 2035 and is summarized as follows: (dollars in thousands) December 31, 2025 December 31, 2024 Risk participation agreements sold Number of risk participation agreements 1 1 Notional amount $ 5,268 $ 5,268 Fair value ( 10 ) ( 10 ) NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the activity and accumulated balances for components of other comprehensive income (loss): Unrealized Gains (Losses) on Debt Securities Derivatives Total (dollars in thousands) Available-for-Sale Held-to-Maturity Balance, December 31, 2022 $ ( 61,998 ) $ ( 9,946 ) $ 185 $ ( 71,759 ) Other comprehensive income before reclassifications 16,949 — 161 17,110 Reclassifications 1,820 1,954 ( 468 ) 3,306 Other comprehensive income (loss), before tax 18,769 1,954 ( 307 ) 20,416 Income tax expense (benefit) 5,350 557 ( 87 ) 5,820 Other comprehensive income (loss), after tax 13,419 1,397 ( 220 ) 14,596 Balance, December 31, 2023 ( 48,579 ) ( 8,549 ) ( 35 ) ( 57,163 ) Other comprehensive income before reclassifications 9,023 — 64 9,087 Reclassifications 3,697 1,992 ( 348 ) 5,341 Other comprehensive income (loss), before tax 12,720 1,992 ( 284 ) 14,428 Income tax expense (benefit) 3,549 562 ( 81 ) 4,030 Other comprehensive income (loss), after tax 9,171 1,430 ( 203 ) 10,398 Balance, December 31, 2024 ( 39,408 ) ( 7,119 ) ( 238 ) ( 46,765 ) Other comprehensive income before reclassifications 30,477 — — 30,477 Reclassifications 200 1,974 ( 38 ) 2,136 Other comprehensive income (loss), before tax 30,677 1,974 ( 38 ) 32,613 Income tax expense (benefit) 8,589 553 ( 276 ) 8,866 Other comprehensive income, after tax 22,088 1,421 238 23,747 Balance, December 31, 2025 $ ( 17,320 ) $ ( 5,698 ) $ — $ ( 23,018 ) Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income. 130 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income. Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 14 for additional information. NOTE 16 – INCOME TAXES Allocation of income tax expense between current and deferred portions is as follows: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Current Federal $ 18,731 $ 17,090 $ 12,538 State 8,438 7,517 6,384 Total current 27,169 24,607 18,922 Deferred Federal 268 307 2,811 State 61 689 1,006 Total deferred 329 996 3,817 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: Year Ended December 31, 2025 2024 2023 (dollars in thousands) Amount Percentage Amount Percentage Amount Percentage Federal income tax, at US statutory rate $ 21,946 21.0 % $ 20,450 21.0 % $ 18,602 21.0 % Increase (decrease) resulting from: 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. 131 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The components of the deferred tax assets and liabilities are as follows: (dollars in thousands) December 31, 2025 December 31, 2024 Deferred tax assets Allowance for credit losses $ 12,709 $ 12,523 Compensation related 3,146 3,119 Deferred loan fees 965 692 Nonaccrual interest 632 673 Goodwill — 3 Net operating loss carryforward 62 99 Net unrealized losses on debt securities 10,282 19,424 Other purchase accounting adjustments 2,952 4,012 Other 648 699 Total deferred tax assets 31,396 41,244 Deferred tax liabilities Fixed asset depreciation 3,569 3,172 Mortgage servicing rights 4,699 5,224 Intangible assets 4,087 4,899 Prepaid assets 1,087 982 Goodwill 59 — Other 655 532 Total deferred tax liabilities 14,156 14,809 Net deferred tax asset $ 17,240 $ 26,435 As of December 31, 2025, the Company had an Illinois net operating loss carryforward of $ 0.8 million which is available to offset future Illinois taxable income. The Illinois net operating loss carryforward is subject to a $500 thousand limitation through 2027 and will begin to expire in 2047. Management believes that it is more likely than not that the deferred tax assets included in the balance sheet will be realized, and that a valuation allowance was not required for deferred tax assets as of December 31, 2025 and 2024. The Company files consolidated federal and state income tax returns. 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. 132 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (dollars in thousands) 2025 2024 2023 Numerator: Net income $ 77,008 $ 71,780 $ 65,842 Earnings allocated to participating securities — — ( 36 ) Numerator for earnings per share - basic and diluted $ 77,008 $ 71,780 $ 65,806 Denominator: Weighted average common shares outstanding 31,502,351 31,590,117 31,626,308 Dilutive effect of outstanding restricted stock units 108,953 122,363 111,839 Weighted average common shares outstanding, including all dilutive potential shares 31,611,304 31,712,480 31,738,147 Earnings per share - basic $ 2.44 $ 2.27 $ 2.08 Earnings per share - diluted $ 2.44 $ 2.26 $ 2.07 NOTE 18 - EMPLOYEE BENEFIT PLANS Profit Sharing Plan During the years ended December 31, 2025, 2024, and 2023, the Company’s profit sharing plan contribution expense amounted to $ 1.9 million, $ 1.8 million, and $ 1.7 million, respectively. The Company’s contributions vest to employees ratably over a six-year period. Medical Insurance Benefits The Company is partially self-insured for medical claims filed by its employees. During the years ended December 31, 2025, 2024, and 2023, medical benefits expense amounted to $ 9.4 million, $ 7.8 million, and $ 6.2 million, respectively. 133 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 19 – STOCK-BASED COMPENSATION PLANS The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares. The following is a summary of stock-based compensation expense (benefit): Year Ended December 31, (dollars in thousands) 2025 2024 2023 Restricted stock units $ 1,196 $ 1,061 $ 1,204 Performance restricted stock units 747 691 749 Total awards classified as equity 1,943 1,752 1,953 Stock appreciation rights 170 ( 32 ) 95 Total stock-based compensation expense $ 2,113 $ 1,720 $ 2,048 Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. 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 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. The total intrinsic value of restricted stock units that vested during the years ended December 31, 2025, 2024, 2023 were $ 1.4 million, $ 1.4 million, and $ 1.1 million, respectively. The following is a summary of restricted stock unit activity: Year Ended December 31, 2025 2024 2023 Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Beginning balance 108,603 $ 19.71 128,159 $ 19.56 139,986 $ 18.01 Granted 43,397 25.00 51,246 19.06 41,847 22.72 Vested ( 56,922 ) 19.59 ( 70,540 ) 18.96 ( 51,693 ) 17.91 Forfeited ( 131 ) 19.06 ( 262 ) 19.06 ( 1,981 ) 19.55 Ending balance 94,947 $ 22.20 108,603 $ 19.71 128,159 $ 19.56 As of December 31, 2025, unrecognized compensation cost related to the non-vested restricted stock units was $ 0.7 million. This cost is expected to be recognized over the weighted average remaining service period of 1.5 years. 134 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Performance Restricted Stock Units A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0 % to 150 % of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance 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 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, 2025 and 2024 was $ 1.1 million and $ 0.8 million, respectively. The following is a summary of performance restricted stock unit activity: Year Ended December 31, 2025 2024 2023 Performance Restricted Stock Units Weighted Average Grant Date Fair Value Performance Restricted Stock Units Weighted Average Grant Date Fair Value Performance Restricted Stock Units Weighted Average Grant Date Fair Value Beginning balance 70,333 $ 19.59 79,097 $ 18.25 62,067 $ 17.02 Granted 16,662 25.00 19,933 19.06 17,030 22.72 Adjustment for performance condition 11,864 18.66 14,349 15.53 — — Vested ( 42,783 ) 18.66 ( 43,046 ) 15.53 — — Forfeited ( 2,451 ) 16.27 — — — — Ending balance 53,625 $ 22.07 70,333 $ 19.59 79,097 $ 18.25 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 year. 135 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Stock Appreciation Rights A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award. The following is a summary of stock appreciation rights activity: Year Ended December 31, 2025 2024 2023 Stock Appreciation Rights Weighted Average Grant Date Assigned Value Stock Appreciation Rights Weighted Average Grant Date Assigned Value Stock Appreciation Rights Weighted Average Grant Date Assigned Value Beginning balance 73,440 $ 16.32 73,440 $ 16.32 73,440 $ 16.32 Granted — — — — — — Exercised ( 6,120 ) 16.32 — — — — Expired — — — — — — Forfeited — — — — — — Ending balance 67,320 $ 16.32 73,440 $ 16.32 73,440 $ 16.32 As of December 31, 2025, all stock appreciation rights were exercisable and had a weighted average remaining term of 3.7 years. There was no unrecognized compensation cost for stock appreciation rights as of December 31, 2025. As of December 31, 2025 and 2024, the liability recorded for outstanding stock appreciation rights was $ 0.7 million and $ 0.5 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price. December 31, 2025 December 31, 2024 Risk-free interest rate 3.61 % 4.37 % Expected volatility 29.60 % 30.95 % Expected life (in years) 3.7 4.7 Expected dividend yield 3.25 % 3.47 % 136 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 20 – REGULATORY CAPITAL The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies. Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer is 2.5 % of risk-weighted assets. As of December 31, 2025 and 2024, the Company and the Bank each met all capital adequacy requirements to which they were subject. 137 Table of Contents 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 Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 663,872 16.82 % $ 315,844 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 620,630 15.72 236,883 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 569,335 14.42 177,662 4.50 N/A N/A Tier 1 Capital (to Average Assets) 620,630 12.26 202,443 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 651,379 16.52 % $ 315,520 8.00 % $ 394,400 10.00 % Tier 1 Capital (to Risk Weighted Assets) 608,137 15.42 236,640 6.00 315,520 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 608,137 15.42 177,480 4.50 256,360 6.50 Tier 1 Capital (to Average Assets) 608,137 12.02 202,314 4.00 252,893 5.00 December 31, 2024 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 652,563 16.51 % $ 316,145 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 573,203 14.50 237,109 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 521,968 13.21 177,831 4.50 N/A N/A Tier 1 Capital (to Average Assets) 573,203 11.51 199,167 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 635,878 16.11 % $ 315,825 8.00 % $ 394,781 10.00 % Tier 1 Capital (to Risk Weighted Assets) 596,071 15.10 236,869 6.00 315,825 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 596,071 15.10 177,651 4.50 256,608 6.50 Tier 1 Capital (to Average Assets) 596,071 11.98 199,030 4.00 248,787 5.00 138 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 21 – SEGMENT INFORMATION The Company’s operations consist of one reportable segment. The President and Chief Executive Officer is the designated chief operating decision maker. The chief operating decision maker uses consolidated financial information for purposes of allocating resources and assessing performance. The chief operating decision maker uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used to assess performance and in establishing compensation. Interest income from loans and investments as well as noninterest income from deposit customer activity, wealth management activities, and mortgage servicing generate the significant revenues. Interest expense, provisions for credit losses, and noninterest expenses such as compensation, occupancy, and data processing costs constitute the significant expenses. Significant revenues and expenses regularly provided to the chief operating decision maker are detailed in the consolidated statements of income. NOTE 22 – FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 - Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. 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. The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. 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. 139 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Recurring Basis The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis. Investment Securities When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income. Mortgage Servicing Rights The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income. Derivative Financial Instruments Derivative financial instruments are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income. 140 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024 by level within the fair value hierarchy: December 31, 2025 (dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Debt securities available-for-sale: U.S. Treasury $ — $ 85,544 $ — $ 85,544 U.S. government agency — 41,422 — 41,422 Municipal — 140,270 — 140,270 Mortgage-backed: Agency residential — 360,795 — 360,795 Agency commercial — 119,937 — 119,937 Corporate — 65,133 — 65,133 Equity securities with readily determinable fair values 3,322 — — 3,322 Mortgage servicing rights — — 16,944 16,944 Derivative financial assets — 2,990 — 2,990 Derivative financial liabilities — 3,000 — 3,000 December 31, 2024 (dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Debt securities available-for-sale: U.S. Treasury $ — $ 111,145 $ — $ 111,145 U.S. government agency — 53,198 — 53,198 Municipal — 130,679 — 130,679 Mortgage-backed: Agency residential — 227,368 — 227,368 Agency commercial — 116,681 — 116,681 Corporate — 58,978 — 58,978 Equity securities with readily determinable fair values 3,315 — — 3,315 Mortgage servicing rights — — 18,827 18,827 Derivative financial assets — 5,553 — 5,553 Derivative financial liabilities — 5,525 — 5,525 141 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): December 31, 2025 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 16,944 Discounted cash flows Constant pre-payment rates (CPR) 4.9 % to 94.3 % ( 8.1 %) Discount rate 9.0 % to 11.0 % ( 9.6 %) December 31, 2024 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 18,827 Discounted cash flows Constant pre-payment rates (CPR) 0.8 % to 94.3 % ( 7.6 %) Discount rate 9.0 % to 96.4 % ( 10.4 %) Nonrecurring Basis The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis. Loans Held for Sale Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2. Collateral-Dependent Loans Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral 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. Bank Premises Held for Sale Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of bank premises held for sale have been classified as Level 3. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of foreclosed assets have been classified as Level 3. 142 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, 2025 and 2024 by level within the fair value hierarchy: December 31, 2025 (dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Loans held for sale $ — $ 1,263 $ — $ 1,263 Collateral-dependent loans — — 23,196 23,196 Foreclosed assets — — 1,126 1,126 December 31, 2024 (dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Loans held for sale $ — $ 1,586 $ — $ 1,586 Collateral-dependent loans — — 27,717 27,717 Bank premises held for sale — — 317 317 Foreclosed assets — — 367 367 The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): December 31, 2025 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 23,196 Appraisal of collateral Appraisal adjustments Not meaningful Foreclosed assets 1,126 Appraisal Appraisal adjustments 7 % ( 7 %) December 31, 2024 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) 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 %) Other Fair Value Methods The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. Cash and Cash Equivalents The carrying amounts of these financial instruments approximate their fair values. Restricted Stock The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans 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 143 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Investments in Unconsolidated Subsidiaries The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts. 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. Time deposits also include public funds time deposits. Securities Sold Under Agreements to Repurchase The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts. FHLB Advances The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics. Subordinated Notes The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Junior Subordinated Debentures The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Accrued Interest The carrying amounts of accrued interest approximate fair value. 144 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table provides summary information on the carrying amounts and estimated fair values of the Company’s other financial instruments: (dollars in thousands) Fair Value Hierarchy Level December 31, 2025 December 31, 2024 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents Level 1 $ 122,269 $ 122,269 $ 137,692 $ 137,692 Debt securities held-to-maturity Level 2 458,746 426,799 499,858 445,186 Restricted stock Level 3 4,979 4,979 5,086 5,086 Loans, net Level 3 3,414,519 3,379,845 3,424,102 3,418,318 Investments in unconsolidated subsidiaries Level 3 1,614 1,614 1,614 1,614 Accrued interest receivable Level 2 23,779 23,779 24,770 24,770 Financial liabilities: Time deposits Level 3 762,487 759,589 785,430 779,997 Securities sold under agreements to repurchase Level 2 — — 28,969 28,969 FHLB advances Level 3 12,301 11,465 13,231 13,159 Subordinated notes Level 3 — — 39,553 38,316 Junior subordinated debentures Level 3 52,909 51,696 52,849 47,942 Accrued interest payable Level 2 3,813 3,813 5,096 5,096 The Company estimated the fair value of lending related commitments as described in Note 23 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods, and termination clauses provided in the agreements. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument. 145 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 23 – COMMITMENTS AND CONTINGENCIES Financial Instruments The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Such commitments and conditional obligations were as follows: Contractual Amount (dollars in thousands) December 31, 2025 December 31, 2024 Commitments to extend credit $ 855,014 $ 845,413 Standby letters of credit 29,727 18,329 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. 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, 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. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan. Allowance for Credit Losses on Unfunded Lending-related Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $ 4.1 million and $ 3.1 million as of December 31, 2025 and 2024, respectively. 146 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Legal Contingencies In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. 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. DeBaere, et al v. Heartland Bank and Trust Company The Bank was a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance. Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company The Bank was a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction. 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. 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 year ended December 31, 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 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. 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. Town and Country Bank The Bank is a defendant in a purported class action lawsuit filed in October 2023, in the Circuit Court of Sangamon County, Illinois. The plaintiff, a customer of Town and Country Bank, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance. On March 29, 2024, the Bank reached an agreement in principle to settle this case in which the Bank would make a one-time cash payment of $ 0.3 million, without admitting fault, to release the Bank from further liability and claims in the case. 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 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. The Bank has agreed to the settlement to avoid the cost, risks, and distraction of continued litigation. The Company believes the settlement is in the best interests of the Company and its shareholders. 147 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES 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 Loans As of December 31, 2025 and 2024, loans to directors, executive officers, principal shareholders and their affiliated entities (“related parties”) totaled $ 0.3 million and $ 0.5 million, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us. Deposits As of December 31, 2025 and 2024, deposits of related parties totaled $ 5.5 million and $ 4.8 million, respectively. NOTE 25 - CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS Following are the condensed parent company only financial statements of HBT Financial. Condensed Parent Company Only Balance Sheets (dollars in thousands) December 31, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 11,850 $ 16,179 Investment in subsidiaries: Bank 654,269 618,914 Non-bank 1,614 1,614 Other assets 1,879 1,929 Total assets $ 669,612 $ 638,636 LIABILITIES Subordinated notes $ — $ 39,553 Junior subordinated debentures 52,909 52,849 Other liabilities 1,205 1,629 Total liabilities 54,114 94,031 STOCKHOLDERS' EQUITY 615,498 544,605 Total liabilities and stockholders' equity $ 669,612 $ 638,636 148 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Condensed Parent Company Only Statements of Income Year ended December 31, (dollars in thousands) 2025 2024 2023 INCOME Dividends received from bank subsidiary $ 72,500 $ 34,000 $ 64,000 Undistributed earnings from bank subsidiary 11,846 44,684 9,199 Other income 146 183 870 Total income 84,492 78,867 74,069 EXPENSES Interest expense 4,975 5,729 5,409 Other expense 5,364 4,106 5,517 Total expenses 10,339 9,835 10,926 INCOME BEFORE INCOME TAX BENEFIT 74,153 69,032 63,143 TAX BENEFIT ( 2,855 ) ( 2,748 ) ( 2,699 ) NET INCOME $ 77,008 $ 71,780 $ 65,842 149 Table of Contents HBT FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Consolidated Parent Company Only Statements of Cash Flow Year ended December 31, (dollars in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 77,008 $ 71,780 $ 65,842 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of consolidated subsidiaries ( 11,846 ) ( 44,684 ) ( 9,199 ) 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 Net gain on sale of foreclosed assets — — ( 563 ) Changes in other assets and liabilities, net ( 136 ) ( 1,105 ) 360 Net cash provided by operating activities 67,476 27,882 58,532 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of equity securities — 20 — Proceeds from sale of foreclosed assets — — 2,888 Net cash paid for acquisition of Town and Country — — ( 37,523 ) Net cash provided by (used in) investing activities — 20 ( 34,635 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of subordinated notes ( 40,000 ) — — Taxes paid related to the vesting of restricted stock units ( 691 ) ( 331 ) ( 181 ) Repurchase of common stock ( 4,505 ) ( 4,423 ) ( 8,907 ) Cash dividends and dividend equivalents paid ( 26,609 ) ( 24,183 ) ( 21,873 ) Net cash used in financing activities ( 71,805 ) ( 28,937 ) ( 30,961 ) NET DECREASE IN CASH AND EQUIVALENTS ( 4,329 ) ( 1,035 ) ( 7,064 ) CASH AND CASH EQUIVALENTS Beginning of year 16,179 17,214 24,278 End of year $ 11,850 $ 16,179 $ 17,214 150 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES. None.