HBT Stock Forecast & Price Target

HBT Finl is positioned for strong future growth, with a projected NII growth of 33% in 2026 and 7% in 2027 driven by an expected increase in NIM through upward re-pricing of fixed rate loan maturities and re-deployment of securities cash flows at higher yields. Furthermore, the company has a strong credit culture, with low NPLs and substandard loans, and is expected to continue to successfully attract potential partners for well-received M&A given mgmt.'s strong track-record and competitive currency. The recent acquisition of CNBN was completed smoothly, with cost savings expected to be almost fully executed next quarter, driving a lower than expected expense run rate, and the company has a strong capital position to support future growth initiatives including potential acquisitions and buybacks.

HBT Finl is expected to face headwinds due to a pick-up in wealth management revenue driven by competitors who have extensive product and service sets. Additionally, the company's core fee income during 2Q/2H26 is expected to rise by only 2%-3% below expectations and its net charge-off ratio is expected to rise by 8 basis points LQ to 1.29% due to a decrease in coverage on non-performing loans. Furthermore, HBT has a high reliance on volatile core fee revenue and a lower NIM due to its repositioning of its securities portfolio and the recent placement of sub debt.