Gabe Stark
Reporter

Farmers State Bank customers in Trenton and across northern Missouri could see expanded banking services and technology under a proposed acquisition of the bank’s parent company.

FSC Bancshares Inc., the holding company for Farmers State Bank, has entered into an agreement to be acquired by Hawthorn Bancshares Inc., the holding company for Hawthorn Bank. The cash-and-stock transaction is valued at approximately $28.3 million.

For Farmers State Bank customers, including those in the Trenton area, bank leaders said the agreement is intended to preserve the community banking approach customers are used to while adding access to broader financial services and technology.

“We are excited to join Hawthorn and believe this partnership represents a compelling opportunity for our customers, employees, and communities,” Michael Poland, president of FSC, said. “Hawthorn shares our commitment to community banking and relationship-driven service, and this combination will allow us to offer broader capabilities, enhanced technology, and additional financial solutions while preserving the local decision-making and service culture our customers value.”

FSC Bancshares is headquartered in Cameron and is the parent company of Farmers State Bank, which operates nine branch locations. According to the announcement, Farmers State Bank would bring approximately $384 million in total assets to the combined company.

The proposed transaction is expected to be completed in the third quarter of 2026. It remains subject to approval by FSC shareholders, required regulatory approvals and other customary closing conditions. The boards of directors of both companies have unanimously approved the agreement.

Under the terms of the transaction, FSC shareholders will receive 413,101 shares of Hawthorn common stock and $14 million in cash. The transaction value is based on Hawthorn’s closing stock price of $34.57 as of April 28.

After the acquisition, the combined company is expected to have approximately $2.2 billion in total assets, $1.7 billion in total loans and $1.9 billion in total deposits, based on financial data as of March 31.

Brent Giles, chief executive officer of Hawthorn, said Farmers State Bank’s relationships with customers and communities were part of what made the acquisition a good fit.

“We are pleased to partner with Farmers State Bank as we continue to execute on our strategy of disciplined growth,” Giles said. “Farmers has developed strong customer relationships and a respected community presence that align closely with Hawthorn’s values. This proposed transaction 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.”

For local customers, the announcement signals a change in ownership at the holding company level, but the companies emphasized continued community banking, personal service and local decision-making as part of the transition.

Additional details are expected as the acquisition process moves forward, including any updates on the timeline, regulatory approvals and what the transition could mean for local customers.