HBT Financial Q2 adjusted EPS beats on CNB acquisition; raises dividend

Overview

• U.S. regional bank's Q2 adjusted EPS and adjusted net income beat analyst expectations

• Company raised quarterly dividend by $0.02 per share

• Net interest income rose, driven by CNB acquisition and higher yields

Outlook

• Company expects no material acquisition-related expenses from CNB merger in coming quarters

• HBT Financial says capital levels and operational structure support organic growth and acquisitions

• Company says balance sheet remains strong and prepared for various economic environments

Result Drivers

• CNB ACQUISITION - Higher average interest-earning asset balances and customer base from CNB merger drove increases in net interest income and noninterest income

• HIGHER ASSET YIELDS - Improved yields on loans and securities contributed to higher net interest margin

• HIGHER FUNDING COSTS - Net interest margin gains were partially offset by increased funding costs from acquired deposit base and new subordinated notes

Company press release: ID:nGNX1vknZy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for HBT Financial, Inc is $33.00, about 0.9% below its July 24 closing price of $33.29

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 24 - First Bancshares Missouri Q2 profit rises helped by branch acquisition

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)