HBT Financial, Inc. (HBT) saw its stock plummet by 5.25% in pre-market trading on Monday following the announcement of a $170.2 million merger agreement with CNB Bank Shares. The significant drop reflects investors' concerns about the potential risks and costs associated with the deal.

According to the joint statement, CNB shareholders will receive either 1.0434 HBT common shares for each CNB share, or $27.73 per share in cash, or a combination of both. This merger is expected to result in CNB shareholders owning approximately 15% of HBT's outstanding common stock after the transaction is completed. The combined entity will boast around $6.9 billion in total assets and 84 branches across Illinois, Iowa, and Missouri.

While HBT Financial reported strong Q3 results, including an adjusted EPS of $0.65 which beat analysts' estimates of $0.62, the market's focus appears to be on the merger announcement. The stock's negative reaction suggests that investors may be worried about potential integration challenges, dilution of existing shareholders' stakes, and the overall impact on HBT's financial position. As the deal is expected to close in Q1 2026, market participants will likely be closely monitoring HBT's performance and integration progress in the coming months.