HBT Stock Forecast & Price Target

HBT Financial Inc. has demonstrated substantial growth in tangible book value (TBV) and tangible common equity (TCE), achieving $16.64 and 10.56%, respectively, thanks to robust internal capital generation reflected in a return on assets (ROA) of 1.56% and return on tangible common equity (ROTCE) of 15.3% for the third quarter. The company's regulatory capital ratios are notably strong, with a common equity tier 1 (CET1) ratio of 14.3% and continued improvements across all capital measures, indicating a solid buffer against potential financial challenges. Looking ahead, HBT is expected to experience stable deposit growth while increasing its net loan-to-deposit ratio, supporting an optimistic outlook for its financial stability and growth prospects.

HBT Financial Inc. reported a net interest income (NII) of $50.5 million, demonstrating a modest increase but with a net interest margin (NIM) decline to 4.18%, alongside a 3% decrease in end-of-period loans held for investment. The company faces several risks, including asset quality deterioration, slow loan and core fee income growth, and increasing operating expenses that could hinder its financial performance. Additionally, projected loan growth for the second half of 2025 is expected to result in a year-over-year decline, further compounded by a modeled decrease in core NIM due to the impact of floating-rate loans and stagnant deposit funding costs.