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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 61GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.4%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.25%
Trailing Yield
$3.25
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
43%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, HBT Financial, Inc. (HBT) receives a "Buy" rating with a composite score of 58.0/100, ranked #35 out of 4446 stocks. Key factor scores: Quality 61/100, Value 72/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
HBT Financial, Inc. (HBT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HBT Financial, Inc. Do?
HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, farmland sales, and crop insurance services; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. It operates through 57 branch locations in Central and Northeastern Illinois and four locations in Eastern Iowa. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois. HBT Financial, Inc. (HBT) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Fred L. Drake and employs approximately 730 people. With a market capitalization of $990M, HBT is one of the notable companies in the Financials sector.
HBT Financial, Inc. (HBT) Stock Rating — Buy (April 2026)
As of April 2026, HBT Financial, Inc. receives a Buy rating with a composite score of 58.0/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.HBT ranks #35 out of 4,446 stocks in our coverage universe. Within the Financials sector, HBT Financial, Inc. ranks #21 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HBT Stock Price and 52-Week Range
HBT Financial, Inc. (HBT) currently trades at $28.25. The stock lost $0.42 (1.5%) in the most recent trading session. The 52-week high for HBT is $29.88, which means the stock is currently trading -5.5% from its annual peak. The 52-week low is $19.46, putting the stock 45.2% above its annual trough. Recent trading volume was 25K shares, suggesting relatively thin trading activity.
Is HBT Overvalued or Undervalued? — Valuation Analysis
HBT Financial, Inc. (HBT) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 13.18x, compared to the Financials sector average of 14.88x — a discount of 11%. The price-to-book ratio stands at 1.63x, versus the sector average of 1.22x. The price-to-sales ratio is 3.93x, compared to 0.90x for the average Financials stock. On an enterprise value basis, HBT trades at 9.75x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, HBT Financial, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
HBT Financial, Inc. Profitability — ROE, Margins, and Quality Score
HBT Financial, Inc. (HBT) earns a quality factor score of 61/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.4%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.5% versus the sector average of 1.2%.
On a margin basis, HBT Financial, Inc. reports gross margins of 0.0%. The operating margin is 40.4% (sector: 21.8%). Net profit margin stands at 29.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 2.4% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
HBT Debt, Balance Sheet, and Financial Health
HBT Financial, Inc. has a debt-to-equity ratio of 724.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $60M. Cash and equivalents stand at $22M.
HBT has a beta of 0.61, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HBT Financial, Inc. is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HBT Financial, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, HBT Financial, Inc. reported revenue of $256M and earnings per share (EPS) of $2.44. Net income for the quarter was $76M. Gross margin was 0.0%. Operating income came in at $103M.
In FY 2025, HBT Financial, Inc. reported revenue of $256M and earnings per share (EPS) of $2.44. Net income for the quarter was $77M. Revenue grew 1.6% year-over-year compared to FY 2024. Operating income came in at $105M.
In Q3 2025, HBT Financial, Inc. reported revenue of $64M and earnings per share (EPS) of $0.63. Net income for the quarter was $20M. Revenue grew 0.3% year-over-year compared to Q3 2024. Operating income came in at $27M.
In Q2 2025, HBT Financial, Inc. reported revenue of $64M and earnings per share (EPS) of $0.61. Net income for the quarter was $19M. Revenue grew 1.7% year-over-year compared to Q2 2024. Operating income came in at $26M.
Over the past 8 quarters, HBT Financial, Inc. has demonstrated a growth trajectory, with revenue expanding from $63M to $256M. Investors analyzing HBT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HBT Dividend Yield and Income Analysis
HBT Financial, Inc. (HBT) currently pays a dividend yield of 3.3%. At this yield, a $10,000 investment in HBT stock would generate approximately $$325.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning HBT offers above-average income for its sector. With a net margin of 29.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
HBT Momentum and Technical Analysis Profile
HBT Financial, Inc. (HBT) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
HBT vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing HBT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HBT vs S&P 500 (SPY) comparison to assess how HBT Financial, Inc. stacks up against the broader market across all factor dimensions.
HBT Next Earnings Date
No upcoming earnings date has been announced for HBT Financial, Inc. (HBT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HBT? — Investment Thesis Summary
The bull case for HBT Financial, Inc. rests on several quantitative strengths. The quality score of 61/100 indicates above-average profitability and business fundamentals. The value score of 72/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 85/100) reduces downside risk.
In summary, HBT Financial, Inc. (HBT) earns a Buy rating with a composite score of 58.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HBT stock.
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Institutional Research Dossier
HBT Financial, Inc. (HBT) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We concur with the Hold rating on HBT Financial, Inc. While the company exhibits strong profitability metrics and trades at a discount to its sector on valuation multiples, its relatively low revenue growth and high debt-to-equity ratio temper our enthusiasm. The bank's focus on traditional banking services in a competitive landscape necessitates a cautious approach, as future growth prospects appear limited without significant strategic shifts or acquisitions.
The primary takeaway is that HBT Financial presents a mixed bag of attractive value and concerning growth prospects. Its operational efficiency and attractive valuation metrics are counterbalanced by its slower revenue growth compared to peers and a higher debt load. Investors should carefully weigh these factors before considering an investment in HBT.
Business Strategy & Overview
HBT Financial operates as a traditional community bank, primarily serving Central and Northeastern Illinois and Eastern Iowa. Its core business revolves around providing a range of banking products and services, including deposit accounts, commercial and industrial loans, real estate loans, agricultural loans, and consumer loans. The company also offers wealth management services, farmland management, and digital banking solutions. This diversified approach aims to cater to a broad customer base, including individuals, businesses, and municipal entities.
The company's strategic positioning is rooted in its local market presence and relationship-based banking model. By focusing on building strong customer relationships and providing personalized service, HBT Financial seeks to differentiate itself from larger, national banks. This strategy is particularly relevant in its target markets, where community ties and local expertise are valued. However, this also limits its geographic expansion and potential for rapid growth.
HBT Financial's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The company also generates fee income from wealth management services, farmland management, and other banking services. The current interest rate environment significantly impacts its profitability, as changes in interest rates affect both its lending margins and deposit costs.
The company's digital banking initiatives represent an effort to adapt to changing customer preferences and compete with fintech companies. By offering online and mobile banking services, HBT Financial aims to enhance customer convenience and expand its reach. However, it faces significant competition from established digital banking platforms and must continuously invest in technology to remain competitive.
HBT Financial's strategic focus on traditional banking services in a competitive environment presents both opportunities and challenges. While its local market presence and relationship-based model provide a solid foundation, the company must navigate the evolving landscape of digital banking and adapt to changing customer expectations to sustain long-term growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
2.4%
Sector: 9.4%
-74% VS SCTR
Economic Moat Analysis
HBT Financial's economic moat is likely narrow. The banking industry is inherently competitive, and while HBT Financial benefits from its established presence in its local markets, it lacks the scale and brand recognition to create a wide moat. Its competitive advantages are primarily derived from customer relationships and local market knowledge, which are difficult but not impossible for competitors to replicate.
The company's switching costs are relatively low. Customers can easily switch banks if they find better rates or services elsewhere. While some customers may be hesitant to switch due to established relationships, this is not a significant barrier to entry for competitors. The rise of digital banking has further reduced switching costs, as customers can easily manage their accounts and transfer funds online.
HBT Financial's intangible assets, such as its brand reputation and customer relationships, contribute to its narrow moat. However, these assets are not as strong as those of larger, national banks with well-established brands and extensive branch networks. The company's local market focus limits its ability to build a strong national brand.
The company does not possess significant cost advantages. As a regional bank, it lacks the economies of scale of larger banks, which can spread their costs over a larger asset base. This puts HBT Financial at a disadvantage in terms of pricing and profitability. While it may be able to achieve some cost efficiencies through technology and process improvements, these are unlikely to create a sustainable cost advantage.
Efficient scale is not a significant factor in HBT Financial's moat. The banking industry is not characterized by natural monopolies or oligopolies. While there are some barriers to entry, such as regulatory requirements and capital costs, these are not insurmountable. Numerous banks operate in HBT Financial's markets, and new banks can enter the market if they meet the regulatory requirements.
Overall, HBT Financial's economic moat is narrow, based on its local market presence, customer relationships, and intangible assets. However, these advantages are not strong enough to create a wide moat, and the company faces significant competition from larger banks and fintech companies.
Financial Health & Profitability
HBT Financial demonstrates solid profitability, as evidenced by its ROE of 12.4%, significantly exceeding the sector average of 8.5%. Its operating margin of 40.4% and net margin of 29.8% also surpass sector averages, indicating efficient operations and effective cost management. These metrics suggest that HBT Financial is adept at generating profits from its assets and operations.
However, the company's revenue growth of 2.4% lags behind the sector average of 9.3%, raising concerns about its ability to expand its business and market share. While the company has consistently generated profits, its slower revenue growth suggests that it may be facing challenges in attracting new customers or expanding its loan portfolio. The quarterly financial history shows a gradual increase in revenue from FY2023 to FY2025, but the growth rate remains modest.
HBT Financial's debt-to-equity ratio of 724.00 is significantly higher than the sector average of 115.00, indicating a high level of leverage. This high debt load could increase the company's vulnerability to economic downturns and interest rate fluctuations. While the company has been able to manage its debt effectively so far, the high leverage ratio warrants close monitoring.
The company's current ratio of 1.14 indicates that it has sufficient liquid assets to cover its short-term liabilities. This suggests that HBT Financial is financially stable and has the ability to meet its immediate obligations. However, the current ratio is not exceptionally high, and the company should maintain a prudent approach to liquidity management.
The free cash flow of $32.96 million indicates that HBT Financial is generating positive cash flow from its operations. This provides the company with the financial flexibility to invest in growth opportunities, repay debt, or return capital to shareholders. However, the free cash flow is relatively modest compared to the company's market capitalization, suggesting that it may need to improve its cash flow generation in the future.
In summary, HBT Financial exhibits strong profitability and a stable financial position, but its slower revenue growth and high debt-to-equity ratio are areas of concern. The company should focus on improving its revenue growth and reducing its leverage to enhance its long-term financial health.
Valuation Assessment
HBT Financial's valuation presents a mixed picture. Its P/E ratio of 10.7x is significantly lower than the sector average of 15.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.3x is lower than the sector average of 3.5x, further supporting the argument that the stock is undervalued based on its enterprise value and earnings.
However, the company's slower revenue growth of 2.4% compared to the sector average of 9.3% tempers the attractiveness of its low valuation multiples. Investors may be discounting the stock due to concerns about its growth prospects. A lower growth rate typically warrants a lower valuation multiple, as future earnings potential is limited.
The company's free cash flow yield, while positive, is not exceptionally high. This suggests that the stock may not be a compelling value play for investors seeking high cash flow returns. The free cash flow yield should be considered in conjunction with the company's growth prospects and risk profile.
Compared to its historical valuation, HBT Financial's current P/E ratio is within its historical range, but it is at the lower end of the range. This suggests that the stock may be trading at a discount to its historical average. However, it is important to consider the changes in the company's business and the overall market environment when assessing its historical valuation.
The Hold rating reflects the balanced view of HBT Financial's valuation. While the stock appears undervalued based on its P/E and EV/EBITDA ratios, its slower revenue growth and modest free cash flow yield warrant a cautious approach. Investors should carefully consider the company's growth prospects and risk profile before making an investment decision.
Overall, HBT Financial's valuation is attractive on some metrics but less so on others. The stock may be suitable for value investors seeking exposure to the banking sector, but it may not be appealing to growth investors seeking high-growth opportunities.
Risk & Uncertainty
HBT Financial faces several risks and uncertainties that could impact its financial performance and stock price. One of the primary risks is interest rate risk. As a traditional bank, HBT Financial's profitability is highly sensitive to changes in interest rates. A rapid increase in interest rates could negatively impact its net interest margin and reduce its earnings. Conversely, a prolonged period of low interest rates could also compress its margins and limit its profitability.
Another significant risk is credit risk. HBT Financial's loan portfolio is exposed to the risk of borrowers defaulting on their loans. An economic downturn or a deterioration in the credit quality of its borrowers could lead to increased loan losses and reduced earnings. The company's concentration in the agricultural sector also exposes it to the risk of adverse weather conditions or commodity price fluctuations impacting its borrowers' ability to repay their loans.
Competition is another key risk. The banking industry is highly competitive, and HBT Financial faces competition from larger national banks, regional banks, and fintech companies. These competitors may offer lower rates, better services, or more innovative products, which could attract HBT Financial's customers and reduce its market share. The rise of digital banking also poses a competitive threat, as customers increasingly prefer online and mobile banking services.
Regulatory risk is also a factor. The banking industry is heavily regulated, and HBT Financial is subject to numerous regulations and compliance requirements. Changes in regulations could increase its compliance costs and limit its ability to operate its business effectively. The company is also subject to regulatory oversight and examinations, which could result in fines or other penalties if it is found to be in violation of regulations.
Finally, the company's high debt-to-equity ratio increases its financial risk. A high level of leverage could make it more difficult for HBT Financial to weather economic downturns or unexpected financial challenges. The company may also face difficulties in raising additional capital if needed.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHBT Financial's strong profitability metrics, including high ROE and operating margin, demonstrate its operational efficiency and ability to generate profits.
BULL VIEWThe company's low valuation multiples, such as P/E and EV/EBITDA, suggest that the stock is undervalued and offers an attractive entry point for value investors.
BULL VIEWHBT Financial's focus on community banking and relationship-based service provides a competitive advantage in its local markets, fostering customer loyalty and retention.
The Bear Case
BEAR VIEWHBT Financial's slow revenue growth compared to the sector average raises concerns about its ability to expand its business and market share.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and vulnerability to economic downturns and interest rate fluctuations.
BEAR VIEWHBT Financial's reliance on traditional banking services and limited digital presence may hinder its ability to compete with larger banks and fintech companies in the long term.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HBT and 4,400+ other equities.
HBT Financial, Inc. exhibits a 139% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.5%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
40.4%
Sector: 21.8%
Net Margin
Bottom-line profitability
29.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+31%
Income Projection audit
A $10,000 investment would generate approximately $325 annually in dividends at the current trailing rate.
