Hawthorn Bancshares, Inc. (HWBK): history, ownership, mission, how it works & makes money

A Brief History of Hawthorn Bancshares, Inc. (HWBK)

Foundation and Early Years

Hawthorn Bancshares, Inc. was established in 1990 in Jefferson City, Missouri. The company was founded to provide a range of financial services, primarily through its wholly-owned subsidiary, Hawthorn Bank.

Growth and Expansion

By 2000, Hawthorn Bank had grown significantly, expanding its footprint in central Missouri. The bank aimed to enhance its offerings, focusing on community banking services, commercial lending, and mortgage services.

Public Offering and Stock Listing

In 2006, Hawthorn Bancshares, Inc. became publicly traded on the NASDAQ Stock Market under the ticker symbol HWBK.

Recent Financial Performance

As of the third quarter of 2023, Hawthorn Bancshares reported the following financial metrics:

Acquisitions and Strategic Developments

• 2012: Acquired a local bank in Mid-Missouri, enhancing branch locations and customer base.
• 2018: Expanded its lending capabilities by launching new products focused on small businesses.
• 2021: Completed the acquisition of an additional community bank, further expanding its market presence.

Community Engagement

Hawthorn Bancshares actively participates in local community initiatives, contributing to various charitable organizations and programs. In 2022, the company donated over $200,000 to local educational and health programs.

Current Market Position

As of October 2023, Hawthorn Bancshares had a market capitalization of approximately $70 million. The bank operates multiple branches across Missouri, focusing on customer service and technology-driven banking solutions.

Recent Developments

In 2023, Hawthorn Bancshares announced plans to enhance its digital banking services, investing an estimated $1 million to upgrade online and mobile banking platforms to better serve customers.

Stock Performance

As of October 2023, the stock price of HWBK was approximately $12.50 per share, reflecting a year-to-date increase of around 15%.

A Who Owns Hawthorn Bancshares, Inc. (HWBK)

Major Shareholders

The ownership structure of Hawthorn Bancshares, Inc. (HWBK) reflects a combination of institutional and individual investors. According to recent filings, the major shareholders include:

Institutional Investor Details

Institutional investors play a significant role in the ownership of Hawthorn Bancshares, Inc. Some of the prominent institutional shareholders include:

Insider Ownership Breakdown

Insiders, including executives and board members, control a significant portion of the shares. The ownership is detailed as follows:

Recent Stock Performance

The stock performance of Hawthorn Bancshares, Inc. over the past year has been notable. The following data summarizes its recent performance metrics:

Ownership Trends

The trends in ownership over the last few years show a steady increase in institutional investment, reflecting confidence in the company's future. Key statistics include:

Conclusion on Ownership Dynamics

Understanding the ownership dynamics of Hawthorn Bancshares, Inc. provides insight into its governance and potential future performance. The mix of institutional, insider, and retail ownership illustrates diverse stakeholder involvement.

Hawthorn Bancshares, Inc. (HWBK) Mission Statement

Overview of Mission Statement

The mission statement of Hawthorn Bancshares, Inc. emphasizes their commitment to provide exceptional financial services while maintaining a strong focus on community involvement and responsible banking. The company strives to deliver innovative banking solutions tailored to the needs of both individual customers and businesses.

Core Values

• Integrity: Upholding the highest ethical standards in all operations.
• Customer-Centric: Prioritizing the needs and satisfaction of customers.
• Community Engagement: Actively participating in and contributing to local communities.
• Innovation: Continuously seeking new ways to improve products and services.

Financial Performance

As of the most recent fiscal report, Hawthorn Bancshares, Inc. reported the following financial statistics:

Strategic Goals

Hawthorn Bancshares, Inc. aims to achieve the following strategic objectives:

• Expand Market Presence: Increase branch locations by 10% within the next two years.
• Enhance Customer Experience: Invest in technology to improve online and mobile banking platforms.
• Strengthen Financial Stability: Aim for a minimum Tier 1 capital ratio of 10%.

Service Offerings

The company provides a diverse range of financial services, which include:

• Personal Banking
• Business Banking
• Wealth Management
• Mortgage Services
• Commercial Lending

Community Involvement

Hawthorn Bancshares, Inc. dedicates a portion of its profits to local charities and community projects. For the year 2022, the company contributed approximately:

Conclusion

Hawthorn Bancshares, Inc. remains dedicated to fulfilling its mission by aligning its operations with its core values, investing in community initiatives, and continuously seeking opportunities for growth and innovation.

How Hawthorn Bancshares, Inc. (HWBK) Works

Company Overview

Hawthorn Bancshares, Inc. operates as a bank holding company. The primary subsidiary, Hawthorn Bank, provides a wide range of financial services including personal banking, commercial banking, and wealth management. As of the latest financial reports, Hawthorn Bancshares has approximately $1.1 billion in total assets.

Financial Performance

For the fiscal year ending December 31, 2022, Hawthorn Bancshares reported the following financial metrics:

Core Products and Services

The following are the major offerings provided by Hawthorn Bancshares:

• Personal Banking Services
• Commercial Banking Services
• Mortgage Lending
• Wealth Management
• Online Banking

Loan Portfolio

Hawthorn Bancshares has a diverse loan portfolio structured as follows:

Branch Network

Hawthorn Bank operates a network of branches located primarily in Missouri, with several locations offering full banking services. The current number of branches is:

Capital Ratios

The capital ratios for Hawthorn Bancshares as reported in their latest filings are as follows:

Market Information

As of October 2023, the market performance highlights include:

Recent Developments

Hawthorn Bancshares has initiated several strategic initiatives aimed at expanding its market reach, including:

• Investment in digital banking technologies
• Partnerships with local businesses
• Community engagement programs

Challenges and Risks

The company faces various challenges, including:

• Regulatory compliance costs
• Interest rate fluctuations
• Economic downturn impacts on loan defaults

How Hawthorn Bancshares, Inc. (HWBK) Makes Money

Core Banking Activities

Hawthorn Bancshares, Inc. primarily generates revenue through its core banking operations. This includes interest income from loans, which is a significant portion of its revenue stream. In 2022, the interest income from loans amounted to approximately $26.7 million.

The bank also earns interest from securities, which further contributes to its overall income. The interest from securities for the same year was reported as $5.4 million.

Loan Portfolio

The loan portfolio of HWBK is a crucial component of its earnings. As of December 31, 2022, the total loans held were approximately $313.2 million. This portfolio includes:

• Commercial loans: $120 million
• Residential mortgages: $80 million
• Consumer loans: $30 million
• Commercial real estate loans: $83.2 million

Non-Interest Income

In addition to interest income, Hawthorn Bancshares also generates non-interest income. This source includes fees from various banking services, such as ATM fees, account maintenance fees, and service charges. In 2022, non-interest income totaled around $3.1 million.

The breakdown of non-interest income includes:

• Service charges on deposits: $1.2 million
• Trust fees: $1 million
• Other fees: $0.9 million

Investment Income

Investment income also plays a role in HWBK's revenue generation. In 2022, the bank reported investment income of approximately $2.1 million. The investment portfolio primarily consists of:

• Municipal securities: $7 million
• Corporate bonds: $5 million
• Equity investments: $2 million

Operating Expenses

Hawthorn Bancshares maintains operational efficiency to maximize profitability. As of 2022, total operating expenses were reported at $20.5 million. The significant components included:

• Salaries and wages: $10 million
• Occupancy expenses: $2.5 million
• Data processing: $1.5 million
• Marketing: $1 million
• Other operational expenses: $5.5 million

Net Income

Ultimately, after accounting for all sources of income and expenses, Hawthorn Bancshares, Inc. reported a net income of $7.9 million for the year 2022. This figure reflects the company’s ability to manage its expenses while growing its revenue streams effectively.

Balance Sheet Highlights

A snapshot of Hawthorn Bancshares' balance sheet reveals its financial standing as of December 31, 2022:

Return on Assets and Equity

Key performance ratios provide further insight into Hawthorn Bancshares, Inc.'s profitability:

• Return on Assets (ROA): 1.88%
• Return on Equity (ROE): 18.30%

Outlook and Strategic Initiatives

Moving forward, Hawthorn Bancshares aims to enhance its profitability through various strategic initiatives, including:

• Expanding the lending portfolio by targeting small to mid-sized businesses.
• Increasing customer engagement through digital banking services.
• Optimizing the cost structure to improve operational efficiency.