HBT Financial IPO: What You Need To Know

A growing bank in northeastern Illinois is looking for your deposit.

The IPO

HBT Financial Inc. HBT will issue 8.3 million shares on the Nasdaq under ticker "HBT," according to the firm’s S-1 filing. Priced between $17 and $19, the offering represents 31.5% of outstanding shares and is expected to bring in about $181.4 million.

The lead underwriters are JPMorgan and Keefe, Bruyette & Woods.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The Illinois bank operates 64 branches across 18 counties, including Cook County. Its market share peaks at 40.7% in DeKalb County and hovers between 14 and 38% in five other host counties.

HBT’s services include traditional banking, wealth management and residential mortgage banking. Last year, the latter two sources contributed noninterest income amounting to 16.2% of total revenues.

In the last 10 years, HBT has grown through seven acquisitions: four failed banks and three fully operating banks. It intends to pursue additional institutions within its target market.

The Finances

In 2018, the company recorded net interest income of $129.4 million with operating revenue of $161.1 million. The previous year saw $121.0 million in net interest income with revenue of 155.6 million.

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