HBT Financial (HBT) delivered upbeat Q3 2021 results driven by higher revenue, disciplined expense management, and healthy credit metrics. Additionally, the company continues to see increased loan demand in its legacy markets.
HBT Financial is a holding company that offers a suite of business, commercial wealth management, and retail banking products and services. It offers money market, savings, checking, HSA, IRA, and interest-bearing transaction accounts.
Adjusted net income in Q3 landed at $14.5 million, an improvement from $10.8 million delivered the same quarter last year. Adjusted EPS came in at $0.53, exceeding consensus estimates of $0.43. Net interest income was up 6.4% year-over-year to $30.7 million due to an increase in PPP loan fees. Non-interest income was down 16.5% year-over-year to $8.4 million.
During the quarter, HBT Financial benefited from the acquisition of NXT Bancorporation. Loan balances in the quarter were up 3%. (See Top Smart Score Stocks on TipRanks)
The acquisition is expected to expand the company’s footprint into Iowa and should lead to higher organic growth. HBT Financial is also seeing better opportunities to attract high-quality commercial lenders.
HBT Financial acquired 20,625 shares of its common stock at a weighted average price of $16.66 during the quarter. As of September 30, 2021, HBT Financial had $12.7 million remaining under its $15 million repurchase program.
Consensus among analysts is a Hold based on 1 Buy rating over the past 3 months. Piper Sandler analyst Nathan Race recently reiterated a Hold rating on the stock and increased the price target to $18 from $17, implying 1.98% upside potential to current levels.
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