Hawthorn Bancshares to Acquire FSC Bancshares for $28.3M
Hawthorn Bancshares and FSC Bancshares announced the signing of an agreement and plan of reorganization pursuant to which Hawthorn will acquire FSC in a cash and stock transaction valued at approximately $28.3M. Based on financial data as of March 31, the combined company is expected to have total assets of $2.2B, total loans of $1.7B, and total deposits of $1.9B. "The proposed transaction will further strengthen Hawthorn's community banking franchise and meaningfully expand its presence in northern Missouri, adding approximately $384 million in total assets and nine branch locations across the Farmers State Bank footprint," the companies said. Hawthorn expects the proposed transaction to be accretive to earnings per share by 20% on fully phased in basis. Tangible book value dilution at closing is expected to be 9.8% and earned back in approximately 3.0 years using the crossover method.
