Bloomington, Illinois-based HBT Financial will acquire Tri-County Financial Group, the holding company for First State Bank, in a deal worth roughly $204.6 million that’s set to close in the first quarter of 2027, the companies said Monday.

The transaction will add 19 branches in central and northern Illinois to HBT’s stable and push the company’s asset total past $8 billion, the banks said.

The deal is HBT’s 12th since 2007, the bank said. The lender’s last purchase, of CNB Bank Shares, closed in March and expanded HBT in the St. Louis metropolitan area. Buying Mendota, Illinois-based Tri-County, by contrast, will grow the bank on the outer reaches of the Chicago metro area.

Fred Drake, HBT’s executive chair, called Tri-County “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.”

Once the transaction closes, HBT expects to name Tri-County’s chair, Thomas Prescott, to the boards of Heartland Bank and the holding company.

Prescott said the deal is “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,” he said.

Under the deal, Tri-County shareholders will receive either 2.4589 shares of HBT common stock, or $71.01 in cash — or a combination of both — for each Tri-County share they own. The deal’s $204.6 million value is based on HBT’s $36.35-per-share closing stock price from Friday.

Tri-County shareholders will own roughly 9% of the combined company when the deal closes, the banks said.

“We are looking forward to the opportunities this partnership will create,” Kirk Ross, Tri-County’s president and CEO, said in a statement Monday. “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.”

The combination is set to create a bank with roughly $8.3 billion in assets, $7.1 billion in deposits and $6 billion in total loans. About $1.6 billion of those assets will come from Tri-County, along with $1.3 billion in deposits and another $1.3 billion in loans.

HBT counts 83 branches. Tri-County’s 19 could bring the combined company beyond 100. Five First State Bank branches, however, stand within two miles of an existing Heartland Bank and Trust office, according to an investor presentation.

HBT CFO Peter Chapman told American Banker the bank would “consolidate branches in close proximity where it's logical to do so.”