Hawthorn Bancshares, Inc. (HWBK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Hawthorn Bancshares, Inc. (HWBK) Financial Services Profile

Hawthorn Bancshares, Inc., established in 1865, operates as a regional bank holding company providing commercial and personal banking services through its Hawthorn Bank subsidiary. With a focus on Missouri communities, the company offers traditional banking products, trust services, and digital banking solutions, maintaining a community-centric approach in a competitive financial landscape.

What Is the Investment Thesis for HWBK?

Hawthorn Bancshares presents a stable investment profile within the regional banking sector, characterized by a P/E ratio of 10.43 and a profit margin of 22.1%. The company's dividend yield of 2.20% offers a steady income stream for investors. Growth catalysts include expanding digital banking services and strategic expansion within Missouri. However, potential risks include interest rate sensitivity and competition from larger national banks and fintech companies. Investors should monitor Hawthorn's ability to maintain its market share and adapt to evolving customer preferences in the digital age. The company's beta of 0.48 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

HWBK Key Highlights

Market capitalization of $275M indicates a moderate-sized regional bank.

• P/E ratio of 10.43 suggests a potentially undervalued stock compared to industry peers.
• Profit margin of 22.1% reflects efficient operations and profitability.
• Gross margin of 72.2% demonstrates strong revenue generation relative to the cost of goods sold.
• Dividend yield of 2.20% provides a consistent income stream for investors.

Who Are HWBK's Competitors?

HWBK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HWBK's Key Strengths?

Long-standing presence and strong reputation in Missouri.

• Diversified range of banking products and services.
• Experienced management team.
• Solid financial performance with consistent profitability.

What Are HWBK's Weaknesses?

Limited geographic diversification, primarily focused on Missouri.

• Smaller scale compared to larger regional and national banks.
• Dependence on traditional banking model in a rapidly evolving digital landscape.
• Potential vulnerability to interest rate fluctuations.

What Could Drive HWBK Stock Higher?

Expansion of digital banking platforms to enhance customer experience and attract new customers.

• Potential acquisitions of smaller community banks within Missouri to expand market share.
• Implementation of new lending programs to support local businesses and drive loan growth.
• Launch of new wealth management products and services to generate fee income.

What Are the Key Risks for HWBK?

Financial-distress signal — its Altman Z-Score of 0.50 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from larger banks and fintech companies could erode market share.
• Rising interest rates could negatively impact loan demand and profitability.
• Regulatory changes and compliance costs could increase operating expenses.
• Economic downturn in Missouri could lead to loan losses.

What Are the Growth Opportunities for HWBK?

• Expansion of Digital Banking Services: Hawthorn Bancshares can leverage the growing demand for digital banking by enhancing its online and mobile platforms. Investing in user-friendly interfaces, mobile payment options, and personalized financial management tools can attract younger demographics and increase customer engagement. The digital banking market is projected to reach $9 trillion by 2028, presenting a significant growth opportunity for Hawthorn to capture a larger share of the digital banking user base.
• Strategic Branch Expansion in Missouri: Identifying underserved communities within Missouri and establishing new branch locations can drive deposit growth and expand Hawthorn's customer base. Focus on areas with strong economic growth and limited banking options. Each new branch represents an opportunity to acquire local deposits and increase market share within the state. This expansion should be coupled with community outreach programs to build local relationships.
• Enhancement of Commercial Lending Portfolio: By offering specialized lending products tailored to local businesses, Hawthorn can strengthen its commercial lending portfolio. This includes providing financing for equipment, real estate, and working capital. The small business lending market is estimated at $800 billion annually, providing a substantial opportunity for Hawthorn to increase its lending volume and generate higher interest income. Focus on industries with strong growth potential in Missouri.
• Development of Wealth Management Services: Expanding wealth management services, including financial planning, investment management, and trust services, can generate fee income and attract high-net-worth clients. Offering personalized wealth management solutions can differentiate Hawthorn from competitors and create long-term client relationships. The wealth management industry is projected to grow at 7% annually, presenting a significant opportunity for Hawthorn to increase its fee-based revenue.
• Partnerships with Fintech Companies: Collaborating with fintech companies can provide Hawthorn with access to innovative technologies and expand its service offerings. Partnering with fintechs specializing in areas such as online lending, digital payments, and cybersecurity can enhance Hawthorn's competitiveness and attract tech-savvy customers. These partnerships can also streamline operations and reduce costs.

What Are HWBK's Competitive Advantages?

• Established brand and reputation in Missouri banking market.
• Strong local customer relationships built over decades.
• Extensive branch network across key Missouri communities.
• Conservative lending practices and risk management.

What Does HWBK Do?

Hawthorn Bancshares, Inc. traces its roots back to 1865, marking over a century and a half of service in the Missouri banking sector. As the holding company for Hawthorn Bank, it delivers a comprehensive suite of financial products and services tailored to both commercial and individual clients. These offerings encompass a variety of deposit accounts, including checking, savings, money market, individual retirement accounts (IRAs), and certificates of deposit (CDs). The bank also provides a range of lending options, such as commercial and industrial loans, single payment personal loans, installment loans, commercial and residential real estate loans, equipment financing, operating loans, and Small Business Administration (SBA) loans. Beyond traditional banking, Hawthorn Bancshares extends its services to include debit and credit cards, trust services (estate planning, investment, and asset management), cash management, safety deposit boxes, brokerage services, and internet banking. Operating through 23 banking offices strategically located in Missouri communities like Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area, Hawthorn Bank maintains a strong regional presence. The company's enduring commitment to its local markets and diversified service portfolio positions it as a key player in the Missouri banking landscape.

What Products and Services Does HWBK Offer?

• Provides checking and savings accounts to individuals and businesses.
• Offers commercial and industrial loans to support local businesses.
• Provides residential and commercial real estate financing.
• Offers personal loans for various consumer needs.
• Provides trust services, including estate planning and asset management.
• Offers online and mobile banking services.
• Provides debit and credit cards to customers.

How Does HWBK Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other banking services.
• Provides trust and wealth management services for a fee.
• Manages risk through prudent lending practices and regulatory compliance.

What Industry Does HWBK Operate In?

Hawthorn Bancshares operates within the competitive regional banking sector, facing both traditional banks and emerging fintech companies. The industry is characterized by increasing regulatory scrutiny, fluctuating interest rates, and evolving customer expectations for digital banking services. The Missouri banking market, while stable, requires institutions to adapt to changing demographics and economic conditions. Hawthorn's focus on community banking and diversified service offerings positions it to capitalize on local market opportunities, but it must also navigate the challenges of scale and technological innovation to remain competitive.

Who Are HWBK's Key Customers?

• Individuals seeking personal banking services.
• Small and medium-sized businesses requiring commercial loans and banking solutions.
• High-net-worth individuals seeking wealth management and trust services.
• Local communities within Missouri.

Company Profile

Hawthorn Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Jefferson City, United States.

Hawthorn Bancshares, Inc. Financial Trajectory

Hawthorn Bancshares, Inc. (HWBK) reported $30.0M in revenue for Q2 FY2026, reflecting 4.3% growth compared to the prior quarter. The company recorded net income of $7.3M, with diluted EPS of $1.06. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, HWBK averaged $0.95 in diluted EPS.

How Hawthorn Bancshares, Inc. Is Valued

Hawthorn Bancshares, Inc. carries a market capitalization of $275M, placing it in the micro-cap category. Relative to its peer group, HWBK's quantitative score of 90/100 is roughly in line with the peer average of 84/100.

Return on equity for Hawthorn Bancshares, Inc. stands at 15.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. HWBK trades at a trailing price-to-earnings ratio of 10.43, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 8.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.22 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.3%, the inverse of the P/E and a quick read on earnings relative to price.

Hawthorn Bancshares, Inc.'s Piotroski F-Score is 9/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.50 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Hawthorn Bancshares, Inc. insiders filed 13 SEC Form 4 transactions — 0 sales and 13 purchases. On net that is roughly 13K shares acquired (about $50K) — insiders putting money in tends to read as conviction.

HWBK Financials

HWBK Latest News

HWBK Analyst Consensus

HWBK MoonshotScore

Common Questions About HWBK (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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