HBT Financial, Inc. Completes Strategic Acquisition of CNB Bank Shares, Inc., Expanding Market Presence and Financial Scale

Here's the lowdown on HBT Financial's latest big move:

What Happened? HBT Financial, Inc. (NASDAQ: HBT) officially wrapped up its acquisition of CNB Bank Shares, Inc. on March 1, 2026. This means CNB Bank & Trust, N.A. is now part of HBT's family, specifically integrated into their subsidiary, Heartland Bank & Trust Company.

When Did This Go Down? The deal closed on March 1, 2026, which was right on schedule after they first announced the agreement back on October 20, 2025. HBT made sure all the necessary regulatory approvals were in place before sealing the deal.

What's the Big Impact? This acquisition is a pretty big deal for HBT!

• It significantly boosts HBT's size, adding about $1.1 billion in assets, $950 million in deposits, and 13 new full-service bank branches across Central and Southern Illinois.
• Now, the combined company is much larger, boasting around $5.2 billion in total assets, $4.4 billion in total deposits, and a network of 63 branches.
• HBT is looking to strengthen its position in its core Illinois markets and expand into attractive new areas like Champaign, Lincoln, and Springfield. This merger also means a more diverse loan portfolio and a stronger, more stable base of deposits.
• HBT plans to integrate CNB's operations, systems, and customer accounts smoothly into Heartland Bank & Trust. They expect this process to take about 12-18 months.
• To keep things consistent and tap into CNB's local knowledge, two former CNB directors, James T. Ashworth and Nancy L. Ruyle, have joined the Boards of Directors for both HBT Financial and Heartland Bank.

How Does This Affect the Money Side?

• The whole transaction was valued at roughly $100 million, based on HBT's stock price when the deal was announced.
• HBT paid CNB shareholders with a mix of cash ($34 million) and HBT Financial common stock, issuing about 5.5 million new shares.
• This issuance of new shares means that existing HBT shareholders saw their ownership percentage go down by about 15%.
• However, HBT is expecting some great financial benefits! They're projecting around 20% in annual cost savings (called "synergies"), which they hope to fully achieve by late 2027.
• They also anticipate that this acquisition will boost their earnings per share (EPS) by about 10% in 2027, not counting those one-time merger costs.
• And good news for long-term value: they expect the tangible book value per share to increase within three years.

Key Things for You to Consider as an Investor:

• Growth & Scale: HBT is definitely bigger now, with a wider reach and more financial muscle. This could mean more opportunities for growth.
• Financial Outlook: Keep a close eye on HBT's upcoming earnings reports. They'll give us the first detailed look at the combined company's financials, how well they're realizing those cost savings, and any integration expenses. Pay attention to the projected growth in EPS and tangible book value per share.
• Integration Risk: Merging two banks is a big undertaking, and it's not without its challenges. Things like customers leaving, system hiccups, or keeping all the best employees can be tricky. HBT is focused on a smooth transition, but these are always things to watch out for.
• Shareholder Impact: Yes, your ownership percentage as an existing HBT shareholder was diluted a bit by the new shares issued. But the company is betting this will be offset by the projected long-term growth in earnings and the overall strategic benefits of the acquisition.
• Long-Term Strategy: This isn't just a one-off deal; it's a strategic move by HBT to grow and stay profitable in the competitive banking world. It shows their commitment to expanding their footprint and enhancing shareholder value over time.

Ultimately, this acquisition positions HBT for significant expansion and potential financial upside, but like any big merger, successful integration and synergy realization will be key to unlocking its full value.