HBT Financial (NASDAQ: HBT) issued $85 million of Fixed-to-Floating Rate Subordinated Notes due 2036 in a private placement on March 11, 2026. The Notes pay an initial fixed rate of 5.75% for five years, then reset quarterly to 3-month SOFR plus 233 basis points.
The company intends to use net proceeds for general corporate purposes, which may include share repurchases. The Notes may be redeemed on or after March 15, 2031 and are intended to qualify as Tier 2 capital. Piper Sandler acted as sole placement agent.
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Positive
Issuance increases Tier 2 regulatory capital by $85 million
Fixed 5.75% coupon for first five years limits short-term interest cost
Proceeds available for general corporate uses, including possible share repurchases
This announcement adds context to HBT’s balance sheet strategy. The company issued $85M of fixed-to-...
Analysis
This announcement adds context to HBT’s balance sheet strategy. The company issued $85M of fixed-to-floating subordinated notes due 2036, qualifying as Tier 2 capital with an initial 5.75% coupon and a reset to three‑month SOFR plus 233 bps. Combined with a recently filed $150M S-3 shelf and prior buyback authorizations, it underscores active capital management around recent acquisitions. Investors may watch future issuance, leverage trends, and integration progress as key follow‑ups.
Key Figures
Subordinated notes issued:$85 millionInitial coupon rate:5.75%Spread over SOFR:233 basis points+5 more
8 metrics
Subordinated notes issued$85 millionAggregate principal amount of fixed-to-floating subordinated notes due 2036
Initial coupon rate5.75%Fixed rate for first five years of the subordinated notes
Spread over SOFR233 basis pointsReset margin over three-month SOFR after five-year fixed period
Maturity year2036Final maturity of the subordinated notes
First call dateMarch 15, 2031Earliest optional redemption date, in whole or in part
Shelf registration size$150,000,000Total securities registered under S-3 shelf dated February 20, 2026
Total assets$5.1 billionBalance sheet size as of December 31, 2025 per recent 10-K
Total deposits$4.4 billionDeposit base as of December 31, 2025 per recent 10-K
Authorized new $30M stock repurchase program effective January 2026–2027.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent news shows mixed reactions: positive strategic items like acquisitions and buybacks sometimes saw negative next-day moves, while other times they aligned positively.
Recent Company History
Over the last few months, HBT has emphasized growth and capital return. It closed the CNB Bank Shares merger, adding $1.8B in assets, and was ranked #1 on Forbes’ 2026 America’s Best Banks list. Q4 2025 results highlighted strong asset quality and a new $30M repurchase program. A separate December authorization also set a new $30M buyback through Jan 1, 2027. Today’s subordinated notes issuance fits into this pattern of active balance sheet and capital management.
Key Terms
fixed-to-floating rate, subordinated notes, three-month sofr, tier 2 capital
4 terms
fixed-to-floating ratefinancial
"aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes due 2036"
A fixed-to-floating rate is a type of loan or investment that starts with a fixed interest rate for a certain period, meaning the payments stay the same, then switches to a variable rate that can change over time based on market conditions. This matters because it offers the stability of fixed payments initially, but also the flexibility to benefit if interest rates drop later.
subordinated notesfinancial
"aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes due 2036"
Subordinated notes are loans companies issue that rank below other debts for repayment, meaning holders get paid only after higher-priority creditors if the issuer runs into trouble. Because they act like being farther back in line at a buffet, they usually offer higher interest to compensate for greater risk, so investors watch them for potential higher returns but also increased chance of loss and sensitivity to the issuer’s financial health.
three-month sofrfinancial
"reset quarterly thereafter to the then current three-month SOFR rate plus 233 basis points"
Three-month SOFR is a market benchmark that represents the effective interest cost for borrowing cash, secured by U.S. Treasury collateral, averaged over a three-month period using daily overnight SOFR readings. Investors and lenders use it as a reference rate for pricing loans, bonds and derivatives—similar to using a three-month weather average to set expectations—so changes affect borrowing costs, debt payments and the valuation of interest-sensitive assets.
tier 2 capitalregulatory
"The Notes are intended to qualify as Tier 2 capital of the Company for regulatory purposes."
Tier 2 capital is the secondary cushion a bank holds to absorb losses after its core capital is used, made up of items like long-term subordinated debt and certain reserves. Think of it as a backup battery that kicks in only after the main battery fails; it matters to investors because its size and quality affect a bank’s regulatory strength, creditworthiness, and the safety of dividends and bond payments under stress.
BLOOMINGTON, Ill., March 11, 2026 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company (“Heartland Bank”), today announced the issuance and sale of $85 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors in a private placement transaction. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include potential share repurchases.
The Notes will bear interest at an initial fixed rate of 5.75% for five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 233 basis points. The Company may redeem the Notes, in whole or in part, at its option, on or after March 15, 2031, or prior to such date, in whole but not in part, under certain limited circumstances. The Notes are intended to qualify as Tier 2 capital of the Company for regulatory purposes.
Piper Sandler & Co. acted as sole placement agent. Vedder Price P.C. served as legal counsel to the placement agent and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to the Company.
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois, eastern Iowa, and suburban St. Louis through 83 full-service branches. As of December 31, 2025, HBT Financial had total assets of $5.1 billion, total loans of $3.5 billion, and total deposits of $4.4 billion.
CONTACT: Peter Chapman HBTIR@hbtbank.com (309) 664-4556
FAQ
What did HBT (NASDAQ: HBT) announce about the $85 million subordinated notes on March 11, 2026?
HBT issued $85 million of Fixed-to-Floating Rate Subordinated Notes due 2036. According to the company, the Notes pay 5.75% fixed for five years, then reset quarterly to 3-month SOFR plus 233 basis points.
How will the HBT subordinated notes affect the bank's regulatory capital?
The Notes are intended to qualify as Tier 2 capital for regulatory purposes. According to the company, this treatment should strengthen capital ratios by adding $85 million of subordinated capital.
When can HBT redeem the subordinated notes and what are the redemption terms?
HBT may redeem the Notes, in whole or part, on or after March 15, 2031, with limited prior redemptions allowed. According to the company, earlier redemption is restricted to certain limited circumstances.
What interest will HBT pay on the subordinated notes after the initial five-year period?
After five years the Notes reset quarterly to 3-month SOFR plus 233 basis points. According to the company, this exposes interest payments to prevailing short-term SOFR levels starting in 2031.
How does HBT plan to use the net proceeds from the $85 million note issuance?
Net proceeds will be used for general corporate purposes and may include share repurchases. According to the company, the offering provides flexibility for capital deployment and potential shareholder returns.
