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Hawthorn Bancshares (HWBK)
:HWBK
US Market
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Hawthorn Bancshares (HWBK) AI Stock Analysis

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HWBK

Hawthorn Bancshares

(NASDAQ:HWBK)

Rating:76Outperform
Price Target:
$33.00
▲(0.00% Upside)
Hawthorn Bancshares scores well due to its strong financial performance, attractive valuation, and positive corporate events. The company's solid profitability and efficient cash flow management are significant strengths. The technical analysis indicates a neutral trend, while the low P/E ratio and increased dividend highlight its value proposition. The absence of earnings call data does not detract from the overall positive outlook.

Hawthorn Bancshares (HWBK) vs. SPDR S&P 500 ETF (SPY)

Hawthorn Bancshares Business Overview & Revenue Model

Company DescriptionHawthorn 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.
How the Company Makes MoneyHawthorn Bancshares generates revenue primarily through interest income derived from loans, including commercial loans, consumer loans, and real estate mortgages. Additionally, the company earns non-interest income from various fees associated with banking services such as account maintenance fees, transaction fees, and service charges. The bank's investment portfolio also contributes to its earnings through interest and dividends. Furthermore, Hawthorn Bancshares may engage in strategic partnerships with local businesses and organizations to enhance its service offerings and expand its customer base, which can lead to increased revenue streams. Overall, the company's financial performance is closely tied to the local economic conditions and the demand for banking services in its operational areas.

Hawthorn Bancshares Financial Statement Overview

Summary
Hawthorn Bancshares presents a strong overall financial position with solid profitability, efficient cash flow management, and a balanced leverage strategy. The income statement reveals consistent revenue growth and robust margins. While the balance sheet displays a moderate leverage ratio, it maintains a stable position typical of the regional banking sector. Cash flow metrics further enhance the company's financial health, indicating ample liquidity and operational efficiency. Continued focus on capital management and equity strengthening could enhance financial resilience.
Income Statement
78
Positive
Hawthorn Bancshares demonstrates a solid income statement with consistent revenue growth over recent years. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 66.67%, indicating efficient cost management. The net profit margin stands at 17.52%, reflecting strong profitability. Revenue growth from 2023 to 2024 was significant at approximately 24.65%, showcasing robust top-line expansion. EBIT and EBITDA margins are healthy, at 21.49% and 23.06% respectively, displaying operational efficiency. Overall, the income statement reflects stability and growth, with strong profitability metrics.
Balance Sheet
74
Positive
The balance sheet of Hawthorn Bancshares shows a moderate debt-to-equity ratio of approximately 1.15, indicating a balanced leverage position. The return on equity (ROE) for the TTM (Trailing-Twelve-Months) is 12.50%, which is commendable. The equity ratio is around 8.14%, suggesting a heavier reliance on liabilities over equity, typical for banks. Overall, the balance sheet is stable, with a prudent leverage strategy but a relatively low equity base which could pose risks in downturns.
Cash Flow
81
Very Positive
The cash flow statement highlights strong free cash flow growth, with the TTM (Trailing-Twelve-Months) free cash flow improving by 2.24% from the previous annual period. The operating cash flow to net income ratio is 1.34, indicating effective conversion of income into cash. The free cash flow to net income ratio stands at 1.20, further confirming strong cash generation capabilities. Overall, cash flow management appears robust, supporting the company's financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.52M109.67M87.96M83.22M81.39M78.02M
Gross Profit72.98M71.88M52.79M73.63M77.18M62.50M
EBITDA25.25M24.01M2.54M27.23M30.50M19.74M
Net Income19.18M18.26M956.00K20.75M22.52M14.29M
Balance Sheet
Total Assets1.88B1.83B1.88B1.92B1.83B1.73B
Cash, Cash Equivalents and Short-Term Investments234.06M270.65M282.19M337.38M468.85M226.64M
Total Debt176.61M132.69M157.70M154.21M152.57M203.45M
Total Liabilities1.73B1.68B1.74B1.80B1.68B1.60B
Stockholders Equity153.41M149.55M136.09M127.41M148.96M130.59M
Cash Flow
Free Cash Flow22.99M22.59M15.51M17.71M29.62M19.19M
Operating Cash Flow25.72M25.59M17.61M20.28M30.21M21.02M
Investing Cash Flow8.24M1.25M54.19M-206.53M-127.53M-139.56M
Financing Cash Flow24.79M-69.30M-62.07M110.07M76.87M220.79M

Hawthorn Bancshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.00
Price Trends
50DMA
29.35
Positive
100DMA
29.11
Positive
200DMA
29.57
Positive
Market Momentum
MACD
0.89
Negative
RSI
71.19
Negative
STOCH
85.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWBK, the sentiment is Positive. The current price of 33 is above the 20-day moving average (MA) of 30.06, above the 50-day MA of 29.35, and above the 200-day MA of 29.57, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWBK.

Hawthorn Bancshares Risk Analysis

Hawthorn Bancshares disclosed 37 risk factors in its most recent earnings report. Hawthorn Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hawthorn Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$225.01M12.4611.01%3.26%2.41%14.29%
76
Outperform
$225.89M10.7614.00%2.33%2.03%390.32%
76
Outperform
$245.32M12.018.69%0.44%17.89%351.71%
74
Outperform
$263.49M19.937.47%13.75%-15.50%
69
Neutral
$213.78M24.447.59%1.34%1.57%21.30%
68
Neutral
$17.82B11.9010.30%3.72%9.69%0.80%
64
Neutral
$201.41M-3.41%7.69%-28.95%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HWBK
Hawthorn Bancshares
33.00
10.54
46.93%
OPOF
Old Point Financial
41.84
22.94
121.38%
FVCB
FVCBankcorp
13.64
1.68
14.05%
VABK
Virginia National Bankshares
41.30
4.86
13.34%
BLFY
Blue Foundry
9.43
-1.44
-13.25%
FINW
FinWise
19.45
6.60
51.36%

Hawthorn Bancshares Corporate Events

DividendsFinancial Disclosures
Hawthorn Bancshares Announces Quarterly Dividend Increase
Positive
Jul 30, 2025

On July 30, 2025, Hawthorn Bancshares, Inc. announced a quarterly cash dividend of $0.20 per common share, payable on October 1, 2025. The company reported a significant improvement in its financial performance for the second quarter of 2025, with net income rising by 31.8% to $6.1 million compared to the same quarter in 2024. The efficiency ratio improved, and the net interest margin increased to 3.89%. Despite a decrease in loans and deposits, the company maintained strong credit quality and capital levels, reflecting a strategic focus on managing net interest margins and controlling expenses.

Shareholder MeetingsStock Buyback
Hawthorn Bancshares Announces New Stock Repurchase Program
Neutral
Jun 5, 2025

On June 3, 2025, Hawthorn Bancshares, Inc. held its Annual Meeting of Shareholders, where approximately 64.05% of the company’s common stock was represented. Shareholders elected four Class III directors, ratified the appointment of Forvis Mazars, LLP as the independent registered public accounting firm, and approved executive compensation. On June 5, 2025, the company announced a new common stock repurchase program, authorizing the repurchase of up to $10 million in market value of its common stock, replacing the prior program. The repurchased shares will be held in treasury for general corporate purposes, with the program having no termination date and being subject to market conditions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025