First State Bank to be acquired by HBT Financial for $204.6M
What's the deal? HBT FinancialDealroom has a profile for this one. Try Dealroom → has agreed to acquire Tri-County Financial Group, the parent of First State BankDealroom has a profile for this one. Try Dealroom →, in a cash-and-stock transaction valued at about $204.6 million.
The terms: Tri-County shareholders can elect 2.4589 HBT shares per share, $71.01 in cash, or a mix, subject to proration. Based on HBT's August 7, 2026 closing price of $36.35, that implies $82.89 per share. Tri-County shareholders are expected to own roughly 9% of HBT once the deal closes.
What's the endgame? The combination is expected to create a bank with approximately $8.3 billion in total assets, $6 billion in loans and $7.1 billion in deposits, spanning Illinois, eastern Iowa and suburban St. Louis. It deepens HBT's central Illinois base while extending its reach into northern Illinois and the Chicago metropolitan area.
First State Bank held about $1.6 billion in assets as of June 30, 2026, and offers commercial and consumer banking, treasury management, wealth management and some insurance services. HBT, which operates 83 full-service branches through Heartland BankDealroom has a profile for this one. Try Dealroom →, had roughly $6.7 billion in assets on the same date.
Why now? The deal marks HBT's 12th merger since 2007, and the company is leaning on that track record to reassure both sides. "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," said president and chief executive officer J. Lance Carter.
The details: Both boards unanimously approved the merger, and Tri-County shareholders holding about 28% of outstanding shares have signed voting agreements in support. HBT expects to appoint Tri-County director Thomas K. Prescott to its boards after closing.
What could go wrong? The deal is slated to close in the first quarter of 2027, but remains subject to Tri-County shareholder approval, regulatory sign-off and customary conditions.
The signal: The transaction adds to consolidation among US community banks, where scale increasingly matters for absorbing compliance and technology costs. For HBT, buying a lender in overlapping markets offers a route to growth through acquisition.
Read more: HBT Financial · Pulse 2.0
Image credit: w_lemay
