Recent news highlights include the company reporting fourth quarter and full year 2025 results, leadership changes with a new CEO and President, a $10 million stock repurchase program, a 5% increase in quarterly dividends, and inclusion in the Russell 3000 and Russell 2000 indexes.

• Hawthorn Bancshares reported improved bottom-line results for Q4 2025, reflecting positive earnings performance [N1].
• The company released detailed results for the fourth quarter and year ended December 31, 2025, confirming operational and financial updates [N2][N6].
• A new CEO and President were announced for Hawthorn Bancshares and Hawthorn Bank, indicating leadership transition [N5].
• The company announced a $10 million common stock repurchase program as part of capital management efforts [N6].
• Quarterly dividends were increased by 5%, reflecting shareholder return initiatives [N7].
• Hawthorn Bancshares achieved inclusion in the Russell 3000 and Russell 2000 indexes, enhancing market visibility [N6].

The company’s diversified loan portfolio and broad service offerings position it to serve a wide range of customers in its regional markets. Recent leadership changes and strategic initiatives such as stock repurchase programs and dividend increases indicate active capital management. Inclusion in major indexes may enhance investor interest. The company’s management of nonperforming assets through dedicated subsidiaries supports financial stability. Its regulatory compliance and strong capital position as reflected in recent financial disclosures provide a foundation for ongoing operations.

The company’s regional focus exposes it to economic and credit risks concentrated in Missouri and parts of Kansas. Small- to medium-sized commercial borrowers may have limited financial resources, increasing credit risk. The company’s financial performance is sensitive to local economic conditions and regulatory changes. Nonperforming assets and credit loss provisions require ongoing monitoring. Competition from other banks in the region may pressure margins and growth. Changes in leadership and strategic direction may introduce execution risks.

Hawthorn Bancshares benefits from its established regional presence with a history dating back to the 19th century, a diversified loan portfolio across multiple counties in Missouri and parts of Kansas, and a broad range of banking and trust services. Its regulatory compliance and FDIC insurance provide depositor confidence. The company’s consolidation of predecessor banks into a single entity and its real estate investment trust subsidiary for managing mortgage assets contribute to operational efficiency. Its inclusion in major indexes and active shareholder base also support market visibility. However, as a regional bank, it faces competition from other local banks and financial institutions in its service areas.

• Credit Risk Concentration: The loan portfolio is concentrated geographically in Missouri and parts of Kansas, making the company susceptible to local economic downturns and borrower defaults.
• Small Business Borrower Vulnerability: Many borrowers are small- to medium-sized businesses with fewer financial resources, which may impair their ability to repay loans during adverse conditions.
• Regulatory and Supervisory Risks: The company is subject to extensive regulation and supervision by the Federal Reserve, FDIC, and state authorities, which may impose restrictions or penalties affecting operations.
• Nonperforming Assets: Management of nonperforming assets through subsidiaries is critical; increases in such assets could adversely affect financial condition.
• Competitive Pressure: Competition from other regional banks and financial institutions may impact deposit growth, loan origination, and profitability.

• Hawthorn Bancshares, Inc. is a bank holding company registered under the Bank Holding Company Act and has elected to become a financial holding company as of October 21, 2001.
• The company owns all issued and outstanding capital stock of Hawthorn Bank, a full-service bank with 18 banking offices primarily in Missouri.
• Hawthorn Bank offers a range of banking and trust services including checking and savings accounts, internet banking, debit cards, certificates of deposit, trust services, brokerage services, safety deposit boxes, and various lending services such as commercial, industrial, personal, installment, and real estate loans.
• The Bank's deposit accounts are insured by the FDIC and regulated by the FDIC and Missouri Division of Finance, with periodic examinations for depositor protection.
• The company has non-bank subsidiaries including Hawthorn Real Estate, LLC, which holds nonperforming assets for orderly disposition, and HB Realty, LLC, a real estate investment trust holding mortgage loans contributed by the Bank.
• Hawthorn Risk Management, Inc., a captive insurance subsidiary formed in 2017, was dissolved as of December 1, 2023.
• As of December 31, 2024, the company and its subsidiaries employed approximately 255 full-time and 13 part-time employees with satisfactory employee relations and no union representation.
• The company has a history of acquisitions and consolidations of regional banks, culminating in the consolidation of several banks into Hawthorn Bank under a Missouri state trust charter in 2007.
• The company dissolved its wholly-owned subsidiary Union in December 2023 to streamline ownership of Hawthorn Bank.
• The company is subject to supervision and examination by the Federal Reserve Board and other regulatory bodies, with regulations primarily protecting depositors.
• The company reported net income of $6.132 million for the nine months ended September 30, 2025, with basic earnings per share of $0.89 and diluted EPS of $0.88 as per the latest 10-Q filing.
• Cash and cash equivalents were approximately $99.875 million as of September 30, 2025.
• The company’s largest shareholders are retail investors owning 52% and institutions owning 30% of shares.
• Recent corporate developments include the appointment of a new CEO and President for Hawthorn Bancshares and Hawthorn Bank.
• The company announced a $10 million common stock repurchase program.
• The company increased its quarterly dividend by 5%.
• Hawthorn Bancshares was included in the Russell 3000 and Russell 2000 indexes.
• The company’s loan portfolio is diversified across central, west central, and southwest Missouri, and eastern Kansas, with no undue concentration in any one industry.
• The company actively monitors loan quality and credit risk, with provisions for probable credit losses based on management estimates.
• The company’s financial figures are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice.