HBT Financial (NASDAQ:HBT) Inc. reported a surge in its net income for Q3 2023, reaching $19.7 million, or $0.62 per diluted share. This represented a significant uptick from Q3 2022's net income of $15.6 million, or $0.54 per diluted share. The company's adjusted net income for the quarter stood at $20.3 million, equivalent to $0.63 per diluted share.
The Illinois-based financial institution showcased strong asset quality with nonperforming assets constituting a mere 0.16% of total assets. The firm also maintained a robust balance sheet, characterized by a low cost of funds at 0.96%. The net interest margin and tax-equivalent net interest margin were reported at 4.07% and 4.13% respectively.
CEO J. Lance Carter emphasized the company's strong profitability, pointing out a ROAA of 1.58%, a ROATCE of 20.70%, and the highest quarterly diluted earnings per share since HBT's initial public offering in October 2019. According to InvestingPro's real-time metrics, the company's return on assets as of LTM2023.Q2 stands at 1.23%, indicating a slight decrease from the reported figure.
The company's net interest income stood at $48.3 million, slightly lower than the previous quarter due to increased funding costs offset by higher loan yields and a favorable interest-earning asset mix. This aligns with InvestingPro Tips suggesting that despite its revenue growth, which has been accelerating and reached 23.53% as per LTM2023.Q2 data, HBT Financial suffers from weak gross profit margins.
Noninterest income experienced a slight dip by 4.3% to $9.5 million, while noninterest expense fell by 9.7% to $30.7 million. This is consistent with the InvestingPro Tips observation that the company yields a high return on invested capital, which is reflected in the P/E ratio of 9.6.
HBT Financial ended the quarter with total loans outstanding at $3.34 billion and total deposits amounting to $4.20 billion, indicating a well-positioned stance for future capital deployment backed by a strong capital base. The firm's market cap, as provided by InvestingPro, is $572.91M USD, and its revenue for LTM2023.Q2 stands at $208.97M USD.
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