HBT Financial completed the CNB acquisition effective March 1, 2026, which is the dominant event reshaping the balance sheet at March 31, 2026. Total assets grew from $5.07B (December 31, 2025) to $6.77B, a $1.70B increase driven by acquired loans, securities, and goodwill/intangibles. Under the liquidation lens, this matters because the acquisition added substantial zero-recovery intangibles: goodwill jumped from $59.8M to $83.5M (+$23.7M) and other intangible assets from $15.1M to $45.0M (+$29.8M). Combined, $128.5M of goodwill and intangibles carry zero liquidation recovery. The loan portfolio at gross book value stands at $4.69B with an ACL of $60.5M (1.29% coverage); the ACL includes $20.0M of purchased-credit-deterioration allowance established at acquisition. Net loans recoverable at liquidation would require an independent view of collateral marks, but the ACL-to-gross-loans ratio is thin relative to the abrupt 33%+ balance sheet expansion. The securities portfolio (AFS + HTM) totals approximately $1.48B at book, with $38.4M of gross unrealized AFS losses and $33.5M of gross unrealized HTM losses — a combined $71.9M of unrealized market discount that would be realized in a liquidation. AOCI at March 31, 2026 is negative $27.4M, partially reflecting these marks already in equity. On the liability side, deposits increased to $5.80B (from $4.36B at year-end), absorbing the CNB-sourced deposit book; face value treated at par under the liquidation lens. A $85.0M subordinated note private placement closed March 11, 2026 (5.75% fixed-to-floating, due 2036), adding a new, non-deferrable liability obligation. Uninsured deposits were $1.34B at March 31, 2026 versus $928.7M at December 31, 2025 — a 44% increase that raises run-risk concentration in a stress scenario. Off-balance-sheet ACL on unfunded commitments stands at $5.9M. Tangible common equity-to-tangible assets compressed from 10.82% to 9.31% quarter-over-quarter due to the balance sheet expansion. The filing discusses CNB acquisition fair value methodology in MD&A critical accounting estimates but the specific purchase price allocation — including total consideration and disaggregation of intangible assets by type — is referenced narratively and the net cash received in acquisition is tagged as a negative outflow ($15.0M received net of cash acquired), consistent with CNB having a cash-rich acquired balance sheet. Filing does not separately tag the $85.0M subordinated note principal as a balance-sheet liability line in TAG_CONTEXT; the instrument is referenced in MD&A and the exhibit list but the subordinated debt balance is captured only via the trust debenture tag at $52.9M (legacy instrument).
▼ Community Notes