HBT Financial’s $204.6M Merger Creates an $8.3B Illinois Banking Force

BLOOMINGTON, IL – August 10, 2026 – In a significant move that underscores the accelerating consolidation within the Midwest's banking sector, HBT Financial, Inc. today announced a definitive agreement to acquire Tri-County Financial Group, Inc. in a deal valued at approximately $204.6 million. The merger will combine HBT's Heartland Bank and Trust Company with Tri-County's First State Bank, forging a formidable regional institution with projected assets of $8.3 billion and a sprawling network across Illinois, eastern Iowa, and suburban St. Louis.

The transaction, a mix of cash and stock, marks the twelfth acquisition for the Bloomington-based HBT Financial since 2007, cementing its reputation as a disciplined and strategic acquirer. For customers, investors, and communities across central and northern Illinois, the deal signals a new chapter, blending the deep local roots of First State Bank with the scale and resources of a rapidly expanding regional powerhouse.

A Calculated Strategy of Scale and Expansion

This merger is the latest chapter in HBT Financial’s long-term inorganic growth story. The company, whose banking heritage dates back to 1920, has systematically expanded its footprint through targeted acquisitions, a strategy that has proven effective in a competitive landscape. This latest deal follows closely on the heels of its successful merger with CNB Bank Shares, Inc., which closed in March 2026 and pushed HBT's assets to nearly $7 billion. The Tri-County acquisition builds directly on that momentum.

The move aligns with a powerful industry trend where regional banks are seeking greater scale to compete effectively against national giants. This scale is crucial for funding investments in technology, navigating complex regulatory requirements, and achieving operational efficiencies. With 70 bank M&A deals announced in the Midwest in 2025 alone, HBT’s latest move is both a reflection of and a contributor to this consolidation wave.

J. Lance Carter, President and CEO of HBT Financial and Heartland Bank, emphasized the strategic continuity. “HBT’s disciplined approach to M&A has allowed us to maintain strong financial performance while expanding our asset base and the communities that we serve,” Carter stated. “We are confident our merger with First State Bank will continue that success.”

This disciplined approach is what has allowed HBT to grow from a local community institution into a significant regional player. The company’s strategy focuses on acquiring banks in adjacent markets that share a similar customer base, particularly in commercial and agricultural lending. By integrating these institutions, HBT aims to blend the intimacy of community banking with the capabilities of a larger organization.

Fred L. Drake, Executive Chairman of HBT Financial, highlighted the deep-seated compatibility between the two banks. “First State Bank is a fine addition to Heartland Bank. I have followed their bank for many years, and as we serve several of the same markets, I know their communities are very similar to ours,” Drake said. “We share a heritage as longstanding, solid community banks.”

Unpacking the Financial Architecture of the Deal

The $204.6 million transaction is structured to provide flexibility to Tri-County shareholders, a common feature in modern bank mergers. Under the agreement, shareholders can elect to receive $71.01 in cash, 2.4589 shares of HBT Financial common stock, or a combination for each share of Tri-County stock they hold. Based on HBT’s recent stock price, this equates to an implied value of $82.89 per share for Tri-County stockholders, who are expected to own approximately 9% of the combined company post-merger.

Financial analysts are already projecting significant benefits. The deal is modeled to be 11.1% accretive to HBT’s earnings per share in the first full year, a figure driven largely by anticipated cost savings and operational synergies. This robust financial outlook underscores the strategic rationale behind the purchase price and structure. The transaction received unanimous approval from both companies' boards, and a significant bloc of Tri-County shareholders, representing about 28% of outstanding shares, have already committed to voting in favor.

To ensure continuity and leverage existing leadership expertise, the agreement includes a provision to appoint current Tri-County director Thomas K. Prescott to the boards of both HBT Financial and Heartland Bank. This move is seen as critical for a smooth integration and for retaining the institutional knowledge of the markets First State Bank serves. “I believe this merger marks an exciting new chapter for our organization,” said Prescott, Chairman of Tri-County. “We are delighted to partner with an institution that shares those beliefs and are confident that the future holds tremendous promise for everyone connected to our bank.”

The transaction was guided by seasoned financial advisors, with Piper Sandler & Co. representing HBT Financial and Performance Trust Capital Partners, LLC advising Tri-County, reflecting the high stakes and complexity of structuring such a significant regional merger.

The Community Banking Question: Local Impact and Integration

For the 19 communities served by First State Bank, from its headquarters in Mendota to branches in St. Charles and Champaign, the merger raises important questions about the future of their local banking relationships. Leaders from both organizations have been quick to emphasize a shared culture and commitment to community-focused service as the bedrock of the deal.

Kirk L. Ross, President and CEO of Tri-County, addressed the future for customers and employees directly. “We are looking forward to the opportunities this partnership will create. Together, we will be stronger, more innovative, and better positioned to meet the evolving needs of those we serve, while remaining committed to the relationships and personal service that define who we are,” Ross remarked.

HBT Financial points to its extensive integration experience as a key asset. With eleven previous mergers under its belt, the company has developed a playbook for absorbing smaller banks while aiming to preserve their local identity and customer relationships. The promise is that First State Bank customers will gain access to a wider array of products and services—from more sophisticated treasury and wealth management solutions to expanded digital banking platforms—without losing the personal touch they value.

However, industry observers note that such mergers inevitably bring change. While HBT has a track record of retaining local talent and maintaining branch presence, decisions regarding potential redundancies, fee structures, and branch optimization will be closely watched by the communities affected. The challenge for HBT will be to deliver the promised scale and efficiency while proving its commitment to the "relationship-based approach" that both banks claim as their hallmark.

Pending the necessary approvals from Tri-County’s shareholders and regulators, the merger is expected to close in the first quarter of 2027. The successful integration of First State Bank will be a critical test of HBT Financial’s model and a key indicator of the evolving balance between scale and service in the American banking landscape.