HBT Financial Q2 adjusted EPS beats on CNB acquisition; raises dividend
HBT•Quarterly results beat estimates
- 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
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Beat | $0.78 | $0.73 (5 Analysts) |
| Q2 EPS | $0.76 | ||
| Q2 Adjusted Net Income | Beat | $28.54 mln | $26.71 mln (5 Analysts) |
| Q2 Net Income | $27.84 mln | ||
| Q2 Net Interest Income | $69.06 mln |
Drivers, outlook and analyst coverage
- 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 says it expects no material acquisition-related expenses from the CNB merger in coming quarters. HBT Financial also said capital levels and operational structure support organic growth and acquisitions, and that its balance sheet remains strong and prepared for various economic environments.
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."
