HBT Financial to Acquire Tri-County Financial Group in $204.6M Deal, Expanding Illinois Footprint

summarizeSummary

HBT Financial announces a definitive agreement to acquire Tri-County Financial Group for $204.6 million in cash and stock, adding $1.6 billion in assets and expanding its Illinois footprint. The deal is expected to be 11.1% accretive to EPS in the first full year with cost savings and close in Q1 2027.

check_boxKey Events · M&A and Partnerships · HBT

• Definitive Merger Agreement Signed

  HBT Financial entered into a definitive agreement to acquire Tri-County Financial Group (TYFG) in a cash-and-stock transaction valued at approximately $204.6 million, based on HBT's closing price of $36.35 on August 7, 2026.

• Consideration and Ownership

  TYFG stockholders can elect 2.4589 HBT shares or $71.01 cash per TYFG share, with aggregate cash capped at $59.9 million and approximately 3.8 million new HBT shares to be issued, resulting in pro forma ownership of ~91% HBT / ~9% TYFG.

• Financial Impact and Accretion

  The transaction is expected to be 11.1% accretive to EPS in the first full year with cost savings, with tangible book value dilution of 2.4% at closing and an earnback period of less than one year using the crossover method.

• Strategic Rationale and Scale

  The merger adds $1.6 billion in assets, $1.3 billion in loans, and $1.3 billion in deposits, creating a combined entity with $8.3 billion in assets and strengthening HBT's presence in central and northern Illinois.

auto_awesomeAnalysis · HBT · Finance

HBT Financial enters a definitive agreement to acquire Tri-County Financial Group (TYFG) in a cash-and-stock deal valued at approximately $204.6 million. The transaction adds $1.6 billion in assets, $1.3 billion in loans, and $1.3 billion in deposits, creating a combined entity with $8.3 billion in assets. TYFG shareholders can elect 2.4589 HBT shares or $71.01 cash per TYFG share, with aggregate cash capped at $59.9 million and approximately 3.8 million new HBT shares to be issued. The deal is expected to close in Q1 2027, pending regulatory and TYFG stockholder approvals. HBT projects 11.1% EPS accretion in the first full year with cost savings and tangible book value dilution of 2.4% at closing, with an earnback period of less than one year. The merger strengthens HBT's presence in central and northern Illinois, complements the recent CNB acquisition, and brings a high-quality, low-cost deposit base. TYFG Chairman Thomas Prescott will join HBT's board, and CEO Kirk Ross will join as a senior officer, ensuring continuity. The transaction is strategically compelling and financially attractive, with a pay-to-trade ratio of 63% and a premium on core deposits of 4.9%.