Hawthorn Bancshares (HWBK) AI Stock Analysis

• Market Cap: $244.25M
• Dividend Yield: 2.39%
• Average Volume (3M): 9.63K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.38
• Revenue Growth: 0.16%
• EPS Growth: 258.06%
• Country: US
• Employees: 255
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.90
• Shares Outstanding: 6,897,646
• 10 Day Avg. Volume: 15,383
• 30 Day Avg. Volume: 9,627
• PEG Ratio: <0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 4.12
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 15.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $36.00 ▲(7.30% Upside)

The score is driven primarily by improved profitability and ROE, supported by an attractive valuation and positive dividend-related corporate updates. These positives are partially offset by weaker recent cash flow trends and mixed/soft technical momentum.

Positive Factors

Profitability Metrics

Strong profitability metrics indicate efficient cost management and the ability to generate profits, supporting long-term financial health.

Dividend Increase

Increasing dividends demonstrate confidence in financial stability and commitment to returning value to shareholders, enhancing investor trust.

Loan Portfolio Growth

Growth in the loan portfolio suggests expanding market reach and increased demand for financial services, which can drive future revenue.

Negative Factors

Declining Revenue Growth

Declining revenue growth can signal challenges in market competitiveness or product demand, potentially impacting long-term financial performance.

Negative Free Cash Flow Growth

Negative free cash flow growth may limit the company's ability to reinvest in business operations and pursue growth opportunities, affecting future prospects.

Reliance on Debt

High reliance on debt can increase financial risk, especially in rising interest rate environments, potentially impacting long-term stability.

Hawthorn Bancshares Business Overview & Revenue Model

Company Description

Hawthorn Bancshares, Inc. (HWBK) is a financial holding company based in Missouri, primarily engaged in providing a range of banking and financial services through its subsidiary, Hawthorn Bank. The company operates in the banking sector, focusing on commercial and retail banking, as well as wealth management services. Its core products include personal and commercial loans, deposit accounts, mortgage services, and investment advisory services, catering to both individual and business clients.

How the Company Makes Money

Hawthorn Bancshares generates revenue primarily through interest income from loans and fees associated with various banking services. The company's key revenue streams include interest earned on loans to consumers and businesses, which typically constitutes the largest portion of its income. Additionally, Hawthorn Bank earns non-interest income through service charges on deposit accounts, mortgage origination fees, and wealth management services. The company may also engage in investment activities, further contributing to its earnings. Strategic partnerships with local businesses and community organizations enhance its market presence, while effective management of operational costs supports overall profitability.

Hawthorn Bancshares Financial Statement Overview

Summary

Income statement strength is the main driver, with a meaningful profitability rebound (TTM net margin ~20%) and improved ROE (~14%). Offsetting this, cash flow is weaker than last year (TTM FCF down ~45%) and results show some cyclicality/volatility, which lowers confidence in durability.

Income Statement

Profitability has improved meaningfully versus the very weak 2023 year, with TTM (Trailing-Twelve-Months) net income of $22.2M on $110.6M of revenue and a ~20% net margin (up from ~17% in 2024 and ~1% in 2023). Revenue growth accelerated in TTM (Trailing-Twelve-Months) versus 2024, supporting the stronger earnings profile. The main weakness is volatility across years (notably the 2023 profit drop), which suggests earnings sensitivity to the rate/credit cycle and/or one-time items.

Balance Sheet

The balance sheet shows improved leverage and solid shareholder returns recently: return on equity is ~14% in TTM (Trailing-Twelve-Months) (up from ~12% in 2024 and near-zero in 2023). Debt levels appear lower in the latest period (reported total debt at $0 in TTM (Trailing-Twelve-Months) versus $132.7M in 2024), which strengthens financial flexibility, though the size of this step-change raises comparability/questions about classification timing. Total assets have grown modestly over time, while equity has increased, but historical leverage was moderate-to-high (debt-to-equity near ~0.9–1.2 in several prior years), leaving some sensitivity if conditions tighten.

Cash Flow

Cash generation remains positive, with TTM (Trailing-Twelve-Months) operating cash flow of $13.7M and free cash flow of $10.8M, and free cash flow still covering a meaningful portion of net income (~79%). The key weakness is the sharp TTM (Trailing-Twelve-Months) decline in free cash flow (down ~45% versus the prior year), and operating cash flow is materially lower than 2024, which tempers confidence in the durability of the recent earnings rebound.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.65M	109.67M	87.96M	83.22M	81.39M	78.02M
Gross Profit	77.71M	71.88M	52.79M	73.63M	77.18M	62.50M
EBITDA	29.12M	24.01M	2.54M	27.23M	30.50M	19.74M
Net Income	22.21M	18.26M	956.00K	20.75M	22.52M	14.29M
Balance Sheet
Total Assets	1.93B	1.83B	1.88B	1.92B	1.83B	1.73B
Cash, Cash Equivalents and Short-Term Investments	224.97M	270.65M	282.19M	337.38M	468.85M	226.64M
Total Debt	229.36M	132.69M	157.70M	154.21M	152.57M	203.45M
Total Liabilities	1.77B	1.68B	1.74B	1.80B	1.68B	1.60B
Stockholders Equity	164.94M	149.55M	136.09M	127.41M	148.96M	130.59M
Cash Flow
Free Cash Flow	10.84M	22.59M	15.51M	17.71M	29.62M	19.19M
Operating Cash Flow	13.71M	25.59M	17.61M	20.28M	30.21M	21.02M
Investing Cash Flow	-63.12M	1.25M	54.19M	-206.53M	-127.53M	-139.56M
Financing Cash Flow	95.06M	-69.30M	-62.07M	110.07M	76.87M	220.79M

Hawthorn Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.55 is above the 20-day moving average (MA) of 32.73, above the 50-day MA of 33.34, and above the 200-day MA of 30.55, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 83.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWBK.

Hawthorn Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	73 Outperform	$242.73M	10.50	8.97%	5.32%	5.07%	228.39%
CFFI	72 Outperform	$243.84M	9.08	10.89%	2.55%	8.53%	42.73%
BPRN	72 Outperform	$245.02M	13.37	6.73%	3.50%	12.92%	56.52%
CBNA	70 Outperform	$228.18M	11.44	13.91%	―	―	―
HWBK	69 Neutral	$244.25M	10.32	14.27%	2.39%	0.16%	258.06%
FCCO	68 Neutral	$225.46M	11.87	12.21%	2.07%	11.59%	42.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hawthorn Bancshares Corporate Events

Hawthorn Bancshares Reports Strong 2025 Results, Raises Dividend

On January 28, 2026, Hawthorn Bancshares reported fourth-quarter 2025 net income of $6.2 million, or $0.90 per diluted share, slightly above the prior quarter and up sharply from a year earlier, as net interest margin expanded to 4.03% and deposit costs declined. For the full year 2025, net income rose 30% to $23.8 million, or $3.43 per diluted share, supported by higher net interest income, improved efficiency (with the efficiency ratio improving to 63.41% from 67.92%), modest loan and deposit growth, and stronger returns on assets and equity, while the bank maintained a well-capitalized position despite higher non-performing assets and lower allowance coverage. Reflecting this stronger profitability and capital position, the board also approved a 5% increase in the quarterly cash dividend to $0.21 per share, payable April 1, 2026 to shareholders of record on March 15, 2026.

The most recent analyst rating on (HWBK) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Hawthorn Bancshares stock, see the HWBK Stock Forecast page.

Hawthorn Bancshares Announces Quarterly Dividend Increase

On October 29, 2025, Hawthorn Bancshares, Inc. announced a quarterly cash dividend of $0.20 per common share, payable on January 1, 2026. The company reported a significant improvement in its third quarter 2025 financial results, with a net income of $6.1 million, marking a 34.1% increase from the previous year. The bank’s efficiency ratio improved, and it experienced growth in both its loan portfolio and wealth management group. These results reflect Hawthorn Bancshares’ strategic focus on core growth and shareholder value, positioning it strongly within the industry.

The most recent analyst rating on (HWBK) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Hawthorn Bancshares stock, see the HWBK Stock Forecast page.