Hawthorn Bancshares to Acquire FSC Bancshares in Merger

Hawthorn Bancshares ( (HWBK) ) just unveiled an update.

On April 29, 2026, Hawthorn Bancshares, Inc. announced an agreement to acquire FSC Bancshares, Inc. in a cash-and-stock transaction valued at about $28.3 million, with FSC shareholders set to receive $14 million in cash and 413,101 Hawthorn shares. The deal, unanimously approved by both boards and targeted to close in the third quarter of 2026 pending shareholder and regulatory approvals, will merge Farmers State Bank into Hawthorn Bank, expand Hawthorn’s footprint in northern Missouri with nine additional branches and roughly $384 million in assets, create a combined institution of about $2.2 billion in assets, and is expected to be materially accretive to earnings despite near-term tangible book value dilution and standard deal protections including termination rights and a break-up fee.

To facilitate completion, Hawthorn entered into a voting agreement with FSC directors and executives covering approximately 37.9% of FSC’s outstanding shares, committing them to support the transaction and restrict share sales until the shareholder vote. Non-employee directors of FSC and Farmers State Bank also signed support agreements imposing post-closing non-disparagement and other restrictive covenants, underscoring Hawthorn’s focus on protecting customer relationships and franchise goodwill as it consolidates and scales its Missouri community banking platform.

Spark’s Take on HWBK Stock

According to Spark, TipRanks’ AI Analyst, HWBK is a Neutral.

The score is driven primarily by improved recent financial performance (strong 2024–2025 rebound) and supportive valuation (low P/E with a dividend). These positives are tempered by weaker current technical momentum and the key fundamental risk of earnings/cash-flow variability, while the recent dividend raise and improved profitability add support despite some credit-quality watch items.

To see Spark’s full report on HWBK stock, click here.

More about Hawthorn Bancshares

Hawthorn Bancshares, Inc., headquartered in Jefferson City, Missouri, is a financial holding company and parent of Hawthorn Bank, which offers a broad range of commercial and consumer banking services, including deposits, loans and treasury management, to individuals and businesses across Missouri through a relationship-focused community banking model. FSC Bancshares, Inc., based in Cameron, Missouri, is the holding company for Farmers State Bank, a community bank providing full-service banking with an emphasis on personalized service, local decision-making and long-standing community relationships in its regional markets.

Average Trading Volume: 7,130

Technical Sentiment Signal: Buy

Current Market Cap: $234.2M

Find detailed analytics on HWBK stock on TipRanks’ Stock Analysis page.