HBT Financial, the parent company of Heartland Bank and Trust, is acquiring Tri-County Financial Group and its property, First State Bank.
The stock and cash transaction is valued at approximately $204.6 million.
Heartland Bank, headquartered in Bloomington, Ill., serves customers throughout Illinois, eastern Iowa, and suburban St. Louis with 83 full-service branches. As of June 30, HBT Financial had total assets of $6.7 billion, total loans of $4.8 billion, and total deposits of $5.8 billion.
First State Bank, headquartered in Mendota, Ill., is a community bank with 19 banking locations throughout central and northern Illinois. First State Bank had total assets of $1.6 billion, total loans of $1.3 billion, and total deposits of $1.3 billion as of June 30. About Tri-County Financial Group, Inc.
The combined company will have approximately $8.3 billion in total assets, $6.0 billion in total loans, and approximately $7.1 billion in total deposits, with branch locations across Illinois, eastern Iowa, and St. Louis.
“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. We share a heritage as longstanding, solid community banks. We look forward to getting to know their staff and working with their customers,” Fred Drake, executive chairman of HBT Financial, said.
This transaction represents the 12th merger that HBT Financial has been a part of since 2007. It has been unanimously approved by each company’s board of directors.
“I believe this merger marks an exciting new chapter for our organization. It is also rooted in the same principles that have guided us for decades: serving customers well, supporting our communities, and creating long-term value for our shareholders. 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,” Thomas Prescott, chairman of Tri-County, said.
Upon closing of the transaction, shareholders of Tri-County are expected to hold approximately 9 percent of HBT Financial’s outstanding common stock. Further, HBT Financial expects to appoint Prescott to the boards of HBT Financial and Heartland Bank.
The merger is expected to close in the first quarter of 2027, subject to approval by Tri-County’s shareholders, required regulatory approvals, and other customary closing conditions.