Hawthorn Bancshares in Jefferson City, Mo., has agreed to buy FSC Bancshares in Cameron, Mo.
The $1.8 billion-asset Hawthorn said in a press release that it will pay $28.3 million in cash and stock for the parent of the $384 million-asset Farmers State Bank. The deal is expected to close in the third quarter.
Hawthorn said the deal should be 20% accretive to its earnings per share. It will take about three years for the company to earn back roughly 9.8% dilution to its tangible book value.
“Farmers has developed strong customer relationships and a respected community presence that align closely with Hawthorn’s values,” Brent Giles, Hawthorn’s CEO, said in the release. The acquisition “expands our footprint in Northwest Missouri and positions us to deliver an expanded range of products and services while maintaining the personalized service that customers expect from a community bank.”
Raymond James and Hunton Andrews Kurth advised Hawthorn. Northland Capital Markets and Stinson advised FSC. Olsen Palmer rendered a fairness opinion to FSC.