Hawthorn Bancshares, Inc. (HWBK) | Investment Case

1. Company Snapshot

1.a. Company Description

Hawthorn Bancshares, Inc.operates as the bank holding company for Hawthorn Bank that provides commercial and personal banking services.It accepts checking, savings, money market, individual retirement, and other time deposit accounts; and certificates of deposit.

The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards.In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services.The company operates through 23 banking offices in Missouri communities, Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area.

Hawthorn Bancshares, Inc.was founded in 1865 and is headquartered in Jefferson City, Missouri.

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1.b. Last Insights on HWBK

Hawthorn Bancshares' recent performance was negatively impacted by unfavorable business conditions, as evident from its Q3 2025 earnings release. Despite reporting net income of $6.1 million, or $0.88 EPS, the company's results may have been affected by a challenging interest rate environment. The declaration of a $0.20 quarterly cash dividend, payable on January 1, 2026, may be viewed as a positive move to reward shareholders. However, the absence of any significant announcements regarding new products, acquisitions, or share buybacks in the recent news may indicate a lack of near-term catalysts.

1.c. Company Highlights

Last Price	34.3
Change Percentage	-2.25%
Open	34.4
Previous Close	35.09
Market Cap ( Millions)	237
Volume	5500
Year High	35.95
Year Low	25.21
M A 50	31.15
M A 200	29.94

FCF Yield	5.40%
Dividend Yield	2.27%
ROE	14.22%
Debt / Equity	0.00%
Net Debt / EBIDTA	-42.54%
Price To Book	1.45
Price Earnings Ratio	10.78
Price To FCF	18.51
Price To sales	2.21
EV / EBITDA	5.29

2. Transcript Summary

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3. NewsRoom

Hawthorn Bancshares Reports Third Quarter 2025 Results

Oct -29

Source: globenewswire.com

Hawthorn Bancshares Announces Cash Dividend

Oct -29

Source: globenewswire.com

Hawthorn Bancshares: Overlooked But Quite Attractive

Aug -15

Source: seekingalpha.com

Hawthorn Bancshares (HWBK) Q2 EPS Up 33%

Aug -01

Source: fool.com

Hawthorn Bancshares Reports Second Quarter 2025 Results

Jul -30

Source: globenewswire.com

Hawthorn Bancshares Announces Cash Dividend

Jul -30

Source: globenewswire.com

Hawthorn Bancshares joins Russell 3000® and Russell 2000® Indexes in FTSE Russell's 2025 Reconstitution

Jun -30

Source: globenewswire.com

Hawthorn Resources Announces Fully Subscribed Private Placement and Planned Name Change to Prince Silver Corp.

Jun -18

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Growing demand for digital banking, increasing mortgage lending, and expanding wealth management services drive growth for Hawthorn Bancshares. Strong economic conditions, low unemployment, and rising consumer confidence also contribute to the growth.

7. Detailed Products

Commercial Loans

Hawthorn Bancshares, Inc. offers a range of commercial loans to businesses, including term loans, lines of credit, and construction loans, to support their growth and expansion plans.

Consumer Loans

The company provides consumer loans, including personal loans, auto loans, and home equity loans, to individuals for various personal and household expenses.

Mortgage Loans

Hawthorn Bancshares, Inc. offers mortgage loans to individuals and families to purchase or refinance their homes.

Deposit Services

The company provides a range of deposit services, including checking and savings accounts, certificates of deposit, and individual retirement accounts, to help individuals and businesses manage their finances.

Treasury Management Services

Hawthorn Bancshares, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation, to help businesses manage their cash flow and optimize their financial performance.

Wealth Management Services

The company provides wealth management services, including investment management, trust services, and financial planning, to help individuals and families achieve their long-term financial goals.

8. Hawthorn Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hawthorn Bancshares, Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the moderate concentration of suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry and the attractiveness of the banking industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition among existing banks and the need to differentiate products and services.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	57.48%
Debt Cost	6.43%
Equity Weight	42.52%
Equity Cost	6.43%
WACC	6.43%
Leverage	135.17%

11. Quality Control: Hawthorn Bancshares, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bank First

A-Score: 6.8/10

Value: 3.4

Growth: 6.6

Quality: 7.6

Yield: 6.0

Momentum: 9.5

Volatility: 7.7

1-Year Total Return ->

Citizens & Northern

A-Score: 6.6/10

Value: 6.0

Growth: 4.9

Quality: 7.4

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Hawthorn Bancshares

A-Score: 6.2/10

Value: 6.1

Growth: 5.2

Quality: 6.0

Yield: 5.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

Flushing Financial

A-Score: 5.6/10

Value: 8.3

Growth: 2.7

Quality: 3.9

Yield: 10.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

ACNB

A-Score: 5.6/10

Value: 4.5

Growth: 5.2

Quality: 5.8

Yield: 6.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Triumph Financial

A-Score: 3.3/10

Value: 2.0

Growth: 3.6

Quality: 4.9

Yield: 4.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.43%

Hawthorn Bancshares, Inc. - US4204761039

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HWBK

1.c. Company Highlights

Fairly Valued

Average Growth

Average Quality

Stable Momentum

Strong Momentum

Expensive

Lower Growth

Medium Volatility

Better Quality

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Commercial Loans

Consumer Loans

Mortgage Loans

Deposit Services

Treasury Management Services

Wealth Management Services

8. Hawthorn Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Hawthorn Bancshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.3$

Current Price

34.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA