AcquisitionsApr 29, 2026, 04:34 PM
HWBK to Acquire FSC Bancshares for $28.3M; EPS Accretive 20%
AI Summary
Hawthorn Bancshares, Inc. announced an agreement to acquire FSC Bancshares, Inc. in a cash and stock transaction valued at approximately $28.3 million. This acquisition is expected to significantly expand Hawthorn's presence in northern Missouri, adding approximately $384 million in total assets and nine branch locations. The transaction is anticipated to be approximately 20% accretive to earnings per share on a fully phased-in basis, with tangible book value dilution of 9.8% expected to be earned back in about 3.0 years.
Key Highlights
- Hawthorn Bancshares (HWBK) to acquire FSC Bancshares for approximately $28.3 million in cash and stock.
- Transaction expected to be approximately 20% accretive to EPS on a fully phased-in basis.
- Tangible book value dilution of approximately 9.8% at closing, with an earn-back period of 3.0 years.
- Combined company pro forma total assets of approximately $2.2 billion, total loans $1.7 billion, and total deposits $1.9 billion.
- FSC Bancshares adds approximately $384 million in total assets and nine branch locations.
- FSC shareholders will receive 413,101 shares of Hawthorn common stock and $14.0 million in cash.
- The acquisition is expected to close in the third quarter of 2026, pending regulatory and shareholder approvals.