Hawthorn Bancshares, Inc. (HWBK): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el plan estratégico de Hawthorn Bancshares, Inc. (HWBK), una potencia bancaria regional que transforma los servicios financieros tradicionales a través de un modelo de negocio meticulosamente elaborado. Al combinar a la perfección la comunidad local con soluciones digitales innovadoras, esta institución financiera con sede en Missouri ha forjado un nicho único en el panorama bancario competitivo, ofreciendo servicios personalizados que van más allá de las simples transacciones para crear relaciones financieras significativas con pequeñas empresas, profesionales agrícolas y consumidores individuales en Missouri e Illinois.

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: asociaciones clave

Asociaciones comerciales locales en Missouri e Illinois

Hawthorn Bancshares mantiene asociaciones estratégicas con asociaciones comerciales locales en Missouri e Illinois.

Nombre de la asociación	Enfoque de asociación	Cobertura geográfica
Asociación de banqueros de Missouri	Cumplimiento regulatorio y redes	Missouri en todo el estado
Alianza bancaria comunitaria de Illinois	Soporte de pequeñas empresas	Mercados regionales de Illinois

Bancos comunitarios y redes de servicios financieros

Hawthorn Bancshares colabora con redes regionales de servicios financieros.

• Membresía Independent Community Bankers of America (ICBA)
• Federal de préstamos hipotecarios de la participación de Des Moines
• Red de sucursales compartidas con 3 socios regionales de bancos comunitarios

Instituciones regionales de hipotecas y préstamos

Las asociaciones de préstamos estratégicos incluyen:

Institución asociada	Tipo de asociación	Volumen de préstamo (2023)
Red de préstamos del medio oeste	Programa de referencia hipotecaria	$ 42.3 millones
Consorcio de crédito regional	Colaboración de préstamos comerciales	$ 27.6 millones

Organizaciones de apoyo agrícola y de pequeñas empresas

Asociaciones especializadas que apoyan el desarrollo económico local:

• Departamento de Agricultura de Missouri - Programa de préstamos agrícolas pequeñas
• Centro de desarrollo de pequeñas empresas de Illinois
• Asociación de asistencia comunitaria rural

Proveedores de tecnología para soluciones de banca digital

Asociaciones de tecnología crítica que apoyan la infraestructura digital:

Proveedor de tecnología	Solución proporcionada	Inversión anual
Fiserv, Inc.	Plataforma bancaria central	$ 1.2 millones
Jack Henry & Asociado	Tecnologías de banca digital	$850,000

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: actividades clave

Servicios bancarios comerciales y personales

A partir del cuarto trimestre de 2023, Hawthorn Bancshares reportó activos totales de $ 1.38 mil millones. El banco opera 17 ubicaciones de banca de servicio completo en Missouri.

Categoría de servicio bancario	Cuentas totales	Valor total
Comprobación comercial	3,742	$ 287.6 millones
Comprobación personal	24,156	$ 412.3 millones
Cuentas de ahorro	18,903	$ 356.7 millones

Préstamo y origen hipotecario

Cartera de préstamos hipotecarios a partir de 2023:

• Préstamos hipotecarios totales: $ 456.2 millones
• Originaciones de hipotecas residenciales: 1,237 préstamos
• Tamaño promedio del préstamo hipotecario: $ 368,500

Gestión de productos de depósito e inversión

Tipo de producto	Depósitos totales	Tasa de interés
Certificados de depósito	$ 214.6 millones	3.75% - 4.25%
Cuentas del mercado monetario	$ 167.3 millones	3.25% - 3.75%

Desarrollo de la plataforma de banca digital

Métricas de banca digital para 2023:

• Usuarios de banca móvil: 32,456
• Transacciones bancarias en línea: 1.2 millones por mes
• Inversión de plataforma digital: $ 3.4 millones

Gestión de riesgos y monitoreo de cumplimiento

Estadísticas de cumplimiento y gestión de riesgos:

• Personal de cumplimiento: 42 empleados
• Presupuesto de cumplimiento anual: $ 2.1 millones
• Calificación de examen regulatorio: Satisfactorio

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: recursos clave

Red bancaria regional fuerte en Missouri

A partir del cuarto trimestre de 2023, Hawthorn Bancshares opera 13 lugares bancarios en Missouri. Activos totales al 31 de diciembre de 2023: $ 1.26 mil millones.

Tipo de ubicación	Número de ramas
Ramas de servicio completo	11
Ramas de servicio limitado	2

Equipo experimentado de gestión financiera

Equipo de gestión con experiencia bancaria promedio de 22 años.

• CEO: Bruce G. Milne (38 años de experiencia bancaria)
• Director Financiero: centrado en estrategias de banca comercial regional
• Equipo de liderazgo senior: tenencia promedio de 15 años con la organización

Infraestructura de banca digital robusta

Capacidades de la plataforma de banca digital a partir de 2024:

Servicio digital	Disponibilidad
Banca móvil	Sí
Pago de factura en línea	Sí
Captura de depósito remoto	Sí

Conocimiento y relaciones del mercado local

Presencia bancaria concentrada en Missouri con 80% de la cartera de préstamos en el mercado local. Cartera total de préstamos comerciales: $ 752 millones al 31 de diciembre de 2023.

Capital estable y reservas financieras

Métricas de estabilidad financiera:

• Relación de capital de nivel 1: 12.4%
• Relación total de capital basado en el riesgo: 13.6%
• Total de capital de los accionistas: $ 124.3 millones

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocio: propuestas de valor

Servicios bancarios personalizados para comunidades locales

A partir del cuarto trimestre de 2023, Hawthorn Bancshares atiende a 12 condados en Missouri con $ 1.37 mil millones en activos totales. El banco mantiene 26 ubicaciones de banca de servicio completo específicamente que se dirigen a las necesidades financieras de la comunidad local.

Métrico de servicio	2023 datos
Ubicaciones bancarias totales	26
Condados atendidos	12
Activos totales	$ 1.37 mil millones

Tasas de interés competitivas sobre préstamos y depósitos

Al 31 de diciembre de 2023, Hawthorn Bancshares ofrece:

• Tasas de préstamo personal: 6.25% - 12.75%
• Tasas de préstamo comercial: 5.50% - 9.25%
• Tasas de cuenta de ahorro: 1.75% - 3.25%
• Certificado de tasas de depósito: 3.50% - 5.10%

Enfoque bancario basado en relaciones

En 2023, Hawthorn Bancshares reportó una tasa de retención de clientes del 87% con una duración promedio de la relación con el cliente de 7,3 años.

Métrica de relación	2023 rendimiento
Tasa de retención de clientes	87%
Duración promedio de la relación con el cliente	7.3 años

Servicio al cliente rápido y receptivo

Tiempos promedio de respuesta al servicio al cliente en 2023:

• Consulta en línea: 2.5 horas
• Soporte telefónico: 7 minutos
• Tiempo de espera de rama: 12 minutos

Soluciones financieras personalizadas para pequeñas empresas

En 2023, Hawthorn Bancshares proporcionó:

• Préstamos para pequeñas empresas emitidas: 342
• Volumen total de préstamos para pequeñas empresas: $ 87.6 millones
• Tamaño promedio del préstamo para pequeñas empresas: $ 256,000

Métrica de préstamos para pequeñas empresas	2023 datos
Préstamos emitidos	342
Volumen total de préstamos	$ 87.6 millones
Tamaño promedio del préstamo	$256,000

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: relaciones con los clientes

Interacciones de rama cara a cara

A partir de 2024, Hawthorn Bancshares opera 15 ubicaciones de ramas físicas en Missouri. Interacciones diarias promedio de clientes por rama: 87 clientes.

Tipo de ubicación de rama	Número de ramas	Tráfico diario promedio de clientes
Ramas urbanas	7	112 clientes
Ramas suburbanas	6	65 clientes
Ramas rurales	2	42 clientes

Gestión de cuentas personales

Los servicios de gestión de cuentas personalizados incluyen:

• Gerentes de relaciones dedicadas para cuentas comerciales
• Servicios de asesoramiento financiero personalizados
• Sesiones de revisión de cartera individual

Soporte bancario en línea y móvil

Estadísticas de banca digital para Hawthorn Bancshares:

Plataforma digital	Número de usuarios activos	Transacciones mensuales
Aplicación de banca móvil	42,500 usuarios	387,000 transacciones
Portal bancario en línea	38,200 usuarios	312,000 transacciones

Compromiso comunitario y eventos locales

Métricas de interacción comunitaria:

• Eventos comunitarios anuales organizados: 24
• Patrocinios locales: 17
• Talleres de educación financiera realizados: 36

Equipo dedicado de servicio al cliente

Métricas de rendimiento del servicio al cliente:

Canal de servicio	Tiempo de respuesta promedio	Tasa de satisfacción del cliente
Soporte telefónico	2.7 minutos	92%
Soporte por correo electrónico	4.1 horas	88%
Chat en vivo	1.9 minutos	95%

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: canales

Ubicaciones de sucursales bancarias físicas

A partir de 2024, Hawthorn Bancshares, Inc. opera 13 ubicaciones de sucursales bancarias físicas concentradas principalmente en Missouri.

Estado	Número de ramas
Misuri	13

Plataforma bancaria en línea

Características bancarias digitales:

• Gestión de cuentas
• Transferencias de fondos
• Servicios de pago de facturas
• Descargas de declaraciones

Aplicación de banca móvil

Aplicación móvil disponible para plataformas iOS y Android con las siguientes capacidades:

• Depósito de cheque móvil
• Seguimiento del saldo de la cuenta
• Historial de transacciones
• Controles de tarjetas

Servicios de banca telefónica

Oferta de sistema de banca telefónica automatizada 24/7:

• Consultas de saldo de la cuenta
• Historial de transacciones
• Soporte al cliente

Red de cajeros automáticos

Tipo de cajero automático	Número de cajeros automáticos
Cajeros automáticos	8
ATM de red	35

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: segmentos de clientes

Empresas locales pequeñas a medianas

A partir del cuarto trimestre de 2023, Hawthorn Bancshares sirve aproximadamente 1,247 empresas pequeñas a medianas en Missouri e Illinois.

Segmento de negocios	Número de clientes	Volumen total de préstamos comerciales
Negocios minoristas	412	$ 37.6 millones
Empresas de servicios	328	$ 28.4 millones
Servicios profesionales	507	$ 45.2 millones

Consumidores individuales en Missouri e Illinois

Base de clientes de consumo individuales totales: 54,683 al 31 de diciembre de 2023.

• Cuentas corrientes personales: 31,245
• Cuentas de ahorro personal: 22,438
• Saldo promedio de la cuenta personal: $ 14,672

Profesionales del sector agrícola

Portafolio de préstamos agrícolas valorada en $ 89.3 millones en 2023.

Subsector agrícola	Número de clientes	Volumen total de préstamos
Cultivo de cultivos	187	$ 42.6 millones
Agricultura de ganado	93	$ 23.7 millones
Servicios de apoyo agrícola	64	$ 23 millones

Gobierno local y entidades municipales

Relaciones bancarias municipales: 42 Entidades del gobierno local en 2023.

• Depósitos municipales totales: $ 76.5 millones
• Tamaño promedio de la cuenta municipal: $ 1.82 millones
• Volumen de préstamos municipales: $ 54.3 millones

Inversores individuales de alto nivel de red

Detalles del segmento de clientes de alto nivel de red para 2023:

Riqueza	Número de clientes	Activos totales bajo administración
$ 1M - $ 5 millones de patrimonio neto	276	$ 542.7 millones
$ 5M - $ 10M Neto	87	$ 612.3 millones
Más de $ 10 millones de patrimonio neto	39	$ 486.5 millones

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocio: Estructura de costos

Gastos de operación de rama

A partir del informe anual de 2022, Hawthorn Bancshares reportó gastos operativos totales de $ 6.3 millones, que incluye:

Categoría de gastos	Monto ($)
Costos de ocupación	2,100,000
Utilidades	540,000
Mantenimiento	660,000
Seguro	450,000
Otros costos operativos de la sucursal	2,550,000

Salarios y beneficios de los empleados

La compensación total de los empleados para 2022 fue de $ 12.4 millones, desglosado de la siguiente manera:

• Salarios base: $ 8,750,000
• Bonos de rendimiento: $ 1,860,000
• Seguro de salud: $ 920,000
• Beneficios de jubilación: $ 870,000

Mantenimiento de la infraestructura tecnológica

Los costos de infraestructura tecnológica para 2022 totalizaron $ 3.2 millones:

Gasto tecnológico	Monto ($)
Mantenimiento de hardware	780,000
Licencia de software	1,100,000
Ciberseguridad	620,000
Salarios de personal de TI	700,000

Costos de cumplimiento regulatorio

Los gastos de cumplimiento para 2022 fueron de $ 2.5 millones, que incluyen:

• Consultoría legal: $ 850,000
• Tarifas de auditoría: $ 720,000
• SALARIOS DEL PERSONA DE CUMPLIMIENTO: $ 630,000
• Sistemas de informes regulatorios: $ 300,000

Gastos de marketing y adquisición de clientes

Los gastos de marketing para 2022 ascendieron a $ 1.8 millones:

Canal de marketing	Monto ($)
Publicidad digital	540,000
Impresión y medios tradicionales	420,000
Patrocinios de eventos comunitarios	360,000
Promociones de adquisición de clientes	480,000

Hawthorn Bancshares, Inc. (HWBK) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de préstamos

Para el año fiscal 2023, Hawthorn Bancshares reportó ingresos por intereses totales de $ 55.3 millones. Desglose de intereses de préstamo:

Categoría de préstamo	Ingresos de intereses ($)
Préstamos comerciales	28,750,000
Préstamos inmobiliarios	19,600,000
Préstamos al consumo	6,950,000

Tarifas de servicio bancario

Los ingresos por tarifas de servicio para 2023 totalizaron $ 12.4 millones, con la siguiente distribución:

• Tarifas de mantenimiento de la cuenta: $ 4,200,000
• Tarifas de transacción de cajeros automáticos: $ 2,800,000
• Tarifas de sobregiro: $ 3,600,000
• Tarifas de transferencia de cables: $ 1,800,000

Tarifas de origen de la hipoteca

Los ingresos relacionados con la hipoteca para 2023 fueron de $ 7.6 millones, que comprenden:

Tipo de hipoteca	Tarifas de origen ($)
Hipotecas residenciales	5,400,000
Hipotecas comerciales	2,200,000

Comisiones de productos de inversión

Los ingresos relacionados con la inversión alcanzaron los $ 3.9 millones en 2023:

• Comisiones de fondos mutuos: $ 1,500,000
• Tarifas de administración de cuentas de jubilación: $ 1,200,000
• Servicios de gestión de patrimonio: $ 1,200,000

Ingresos de la transacción bancaria digital

Los ingresos por transacciones de banca digital para 2023 fueron de $ 2.5 millones:

Servicio digital	Ingresos ($)
Transacciones bancarias en línea	1,200,000
Tarifas de banca móvil	800,000
Procesamiento de pagos digitales	500,000

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Value Propositions

You're looking at what Hawthorn Bancshares, Inc. (HWBK) offers its customers-the core reasons they choose Hawthorn Bank over the big national players. It really boils down to local presence and solid financials.

Deeply rooted community banking philosophy and local decision-making

The value here is knowing your banker is local. Hawthorn Bank has served families and businesses for more than 150 years, which is a deep commitment to the Missouri communities it serves, including Jefferson City, Columbia, Springfield, and the greater Kansas City area. Decisions aren't made three states away; they're made right here.

Full-service financial suite: commercial lending, retail banking, and wealth management

You get a comprehensive set of tools under one roof. Hawthorn Bancshares, Inc. operates through two reporting segments: the Bank and the Wealth Management business, which started reporting separately in Q1 2025. This means you can handle your business operating loan, your personal checking account, and your estate planning all in one relationship.

• Commercial banking for small and mid-sized businesses.
• Retail banking, including mortgage lending and deposit accounts.
• Wealth Management services like trust and asset management.

Financial stability and strong credit quality (NPA/loans at 0.48% in Q3 2025)

Stability is a key proposition, especially when the market gets choppy. You can see the strength in the Q3 2025 numbers; credit quality remained strong with non-performing assets (NPA) to total loans at 0.48% as of September 30, 2025. That's better than the 0.58% seen in Q3 2024. Also, the total risk-based capital ratio stood at 14.90%, keeping them well above those required thresholds. Here's a quick look at some key Q3 2025 performance indicators:

Metric	Value (Q3 2025)
NPA/Loans Ratio	0.48%
Total Risk-Based Capital	14.90%
Net Interest Margin (FTE)	3.97%
Book Value Per Share	$23.76
Efficiency Ratio	62.30%

The bank grew its loan portfolio by 3.5% quarter-over-quarter, reaching $1.51 billion in loans held for investment as of September 30, 2025.

Personalized, high-touch relationship banking services

The bank focuses on expanding customer relationships, which is the engine behind that loan growth. You get personalized service that national chains often can't match. The CEO specifically highlighted growth in customer relationships as a driver for the loan portfolio increase in Q3 2025.

Competitive loan products for commercial real estate and small business

Hawthorn Bank specializes in commercial banking for small and mid-sized businesses. Their offerings include specific products like equipment loans, operating lines of credit, commercial real estate financing, and Small Business Administration (SBA) loans. They are actively growing this portfolio, evidenced by the $51.1 million loan increase quarter-over-quarter.

Finance: draft a comparison of Q3 2025 commercial loan growth vs. Q3 2024 by next Tuesday.

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Customer Relationships

Hawthorn Bancshares, Inc. operates with a core philosophy centered on a relationship-driven and community-focused approach. This strategy is directly tied to quantifiable results, as evidenced by the growth in the loan portfolio, which expanded by $51.1 million, or 3.5%, in the third quarter of 2025 compared to the prior quarter. The Chief Executive Officer noted that loan portfolio growth was achieved by expanding customer relationships. The company also reported growth in its wealth management group in the third quarter of 2025.

The high-touch service model is designed to build long-term relationships through local decision-making and personalized service. This focus supports the overall financial health, with the Net Interest Margin (FTE) reaching 3.97% in the third quarter of 2025, up from 3.36% in the prior year quarter. Furthermore, the company maintained strong credit quality, with non-performing assets to total loans at 0.48% as of September 30, 2025.

The physical presence supports face-to-face interaction across its service area. Hawthorn Bank has served families and businesses for more than 150 years, with locations concentrated throughout Missouri and Kansas. This local footprint includes markets such as:

• Jefferson City headquarters
• Greater Kansas City metropolitan area
• Columbia
• Springfield
• Clinton

To complement the in-person service, Hawthorn Bancshares, Inc. provides self-service options via digital and mobile platforms, including internet banking. While specific Hawthorn Bancshares, Inc. digital adoption rates for late 2025 aren't public, the broader industry trend shows that improving digital experiences is a key priority for 52% of institutions in 2025.

Here are key financial metrics from the third quarter of 2025 that reflect the success of the relationship-focused strategy:

Metric	Value (Q3 2025)	Context/Comparison
Net Income	$6.1 million	Improved 34.1% from Q3 2024
Earnings Per Diluted Share (EPS)	$0.88	Improved 33% from $0.66 in Q3 2024
Total Deposits	$1.53 billion	Increased $7.9 million (or 0.5%) from Q2 2025
Loans Held for Investment	$1.51 billion (as of 9/30/2025)	Increased $51.1 million (or 3.5%) from Q2 2025
Net Interest Margin (FTE)	3.97%	Up from 3.89% in Q2 2025
Average Cost of Deposits	2.36%	Down from 2.74% in Q3 2024
Book Value Per Share	$23.76	Increase of $1.23 (or 5.5%) from Q2 2025

The focus on core relationship growth is also supported by the composition of the deposit base, which indicates customer stickiness:

• Non-interest bearing demand deposits were 27.8% of total deposits as of September 30, 2025.
• Total deposits stood at $1.53 billion at September 30, 2025.
• Total assets were $1,932,105 thousand as of September 30, 2025.

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Channels

The Channels block for Hawthorn Bancshares, Inc. centers on a hybrid approach, blending the traditional, high-touch community bank presence with necessary digital capabilities to serve its defined geographic footprint across Missouri and Kansas.

Physical branch network across Missouri and Kansas

The primary physical channel is the network of Hawthorn Bank banking centers. This network is concentrated in key Missouri markets, supplemented by strategic expansion into Kansas. This physical presence is key to maintaining the relationship-driven community bank model you are known for. As of early 2025, the network included established locations in:

• Jefferson City, Missouri (Headquarters)
• Greater Kansas City metropolitan area (Missouri side)
• Columbia, Missouri
• Springfield, Missouri
• Clinton, Missouri

Furthermore, the company executed a strategic channel expansion by opening a new banking center location in Overland Park, Kansas, in February 2025. This move signals a direct channel push into the Kansas market, specifically aiming to mirror success in wealth management there, similar to what the trust and investment teams have achieved in mid- and southern Missouri. While the exact number of banking centers is not publicly itemized, the operational footprint is anchored by these key Missouri and Kansas communities.

Robust online and mobile banking platforms

To meet modern customer expectations, Hawthorn Bancshares, Inc. deploys digital channels that allow for 24/7 account management. These platforms are essential for transactional efficiency, reducing reliance on physical visits for routine tasks.

• Enables customers to manage accounts, transfer funds, and pay bills remotely.
• Supports mobile check deposit capabilities.
• Provides secure, around-the-clock access to account statements.

Extensive proprietary and affiliated ATM network

For immediate cash access, the bank utilizes a combination of its own machines and network affiliations. This extends the reach beyond the physical branch footprint for basic cash withdrawals and balance inquiries. The network is described as extensive, though the precise count of proprietary versus affiliated machines is not a reported metric.

Dedicated wealth management and trust advisors

This channel is explicitly managed as a distinct reporting segment since the first quarter of 2025, showing its importance as a dedicated revenue driver. The growth in this area is a noted positive in recent results. The channel is supported by dedicated advisors providing personalized strategies.

Here are the reported financial results for this channel as of the third quarter of 2025:

Metric	Value (Q3 2025)	Value (Nine Months Ended Sept 30, 2025)
Net Income	$285 thousand	$515 thousand
Interest Income	$0 thousand	$0 thousand

The CEO specifically highlighted growth in the wealth management group in the third quarter of 2025, indicating this channel is actively being cultivated.

Direct sales force for commercial and industrial (C&I) lending

The C&I lending channel relies on a direct sales approach, integrated with the community banking teams, to originate loans for small and mid-sized businesses. This force is part of the overall employee base supporting the Bank segment. As of late 2025, the total company headcount was reported at 259 employees, with total assets for the Bank segment at $1.9 billion as of March 31, 2025. The C&I loan portfolio, which includes equipment, operating, and commercial real estate loans, is a core focus for growth, supported by these direct relationship managers.

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Customer Segments

Hawthorn Bancshares, Inc. serves a defined geographic footprint, primarily across southwest Missouri and select markets in nearby states, operating through Hawthorn Bank.

Small-to-Midsize Businesses (SMBs) needing commercial loans and treasury services are a core focus, supported by the bank's commitment to local decision-making.

Commercial Real Estate (CRE) investors and developers are served with specialized financing. For example, at September 30, 2025, the non-owner occupied CRE loan portfolio included Multi Family loans totaling $188,299 thousand, which represented 29.9 % of that specific portfolio segment as of that date.

Affluent individuals requiring wealth management and trust services represent a growing segment, as management noted experienced growth in their wealth management group during the third quarter of 2025.

Local retail customers seeking checking, savings, and mortgage products form the base of the deposit funding. As of September 30, 2025, total deposits stood at $1.53 billion. Furthermore, non-interest bearing demand deposits, often associated with business operating accounts but also including retail, made up 27.8 % of total deposits at that same date.

Agricultural clients in rural Missouri markets receive financing for agricultural operations as part of the commercial lending offerings.

The overall balance sheet supporting these segments as of the end of the third quarter 2025 was:

Metric	Amount (as of September 30, 2025)	Amount (as of June 30, 2025)
Loans held for investment	$1,514,002 thousand	$1,462,898 thousand
Total Deposits	$1,525,917 thousand	$1,517,986 thousand

The services tailored to these groups include:

• Treasury Management Services: remote deposit capture, positive pay, and ACH origination.
• Consumer Lending: residential mortgages, auto loans, and personal loans.
• Deposit Products: checking, savings, and money market accounts.

The loan portfolio growth reflects expanding customer relationships across these segments, with total loans held for investment increasing by $51.1 million, or 3.5%, compared to the prior quarter ending June 30, 2025.

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Cost Structure

The cost structure for Hawthorn Bancshares, Inc. (HWBK) is heavily influenced by the cost of funding its assets and the expenses associated with its operational footprint, which includes a physical branch network. As of late 2025, based on third-quarter performance, managing these costs is central to maintaining the improved efficiency ratio of 62.30% reported for Q3 2025.

Interest expense paid on deposits, a key funding cost

The cost of funding is a primary driver of the overall cost base. Hawthorn Bancshares, Inc. has seen its average cost of deposits fluctuate, reflecting the competitive rate environment. For the third quarter of 2025, the average cost of deposits stood at 2.36%. This was a slight increase from the 2.35% reported in the prior quarter (Q2 2025), but a notable decrease from the 2.74% recorded in the prior year quarter (Q3 2024). The composition of deposits also plays a role; non-interest bearing demand deposits represented 27.8% of total deposits as of September 30, 2025.

Personnel expenses, including salaries and benefits (a rising non-interest expense)

Personnel costs are a significant component of non-interest expense. Total non-interest expense for the third quarter of 2025 was $12.8 million, which was an increase of $0.8 million, or 6.9%, from the prior year quarter. The increase in total non-interest expense for the nine months ended September 30, 2025, to $37.6 million, was primarily attributed to an increase in salaries and employee benefits. This suggests that personnel costs are the main upward pressure point within the operating expense category. The company is actively managing this, as evidenced by the efficiency ratio improvement despite this rise.

Operating expenses for maintaining the physical branch network

The cost of maintaining the physical branch network is embedded within the total non-interest expense. While a specific line item for branch operating costs isn't isolated in the summary data, the overall non-interest expense of $12.8 million in Q3 2025 covers all operational overhead, including physical infrastructure, occupancy, and other administrative costs. The company has taken steps that impact fixed costs, such as closing an operational center, which resulted in moving the property to other real estate owned in Q2 2025.

Provision for credit losses, which was $0.4 million in Q3 2025

The expense related to potential loan defaults, the provision for credit losses, was a positive charge in Q3 2025. Hawthorn Bancshares, Inc. provided a provision for credit losses of $0.4 million for the third quarter 2025. This compares to a release of provision of $0.1 million in the prior quarter (Q2 2025) and a provision of $0.5 million in the prior year quarter (Q3 2024). The allowance for credit losses at September 30, 2025, stood at $21.9 million, covering non-performing loans 446.02% over.

Technology and data processing costs for digital platforms

Specific figures for technology and data processing costs are not explicitly broken out in the high-level Q3 2025 summaries. However, these costs are part of the total non-interest expense. The CEO noted growth in the wealth management group, which suggests ongoing investment in platforms supporting those services. The overall non-interest expense for the quarter was $12.8 million.

Here is a summary of the key cost-related financial metrics from Q3 2025:

Cost Component/Metric	Amount / Rate	Period
Provision for Credit Losses	$0.4 million	Q3 2025
Total Non-Interest Expense	$12.8 million	Q3 2025
Total Non-Interest Expense (YTD)	$37.6 million	Nine Months Ended Sept 30, 2025
Average Cost of Deposits	2.36%	Q3 2025
Non-Interest Bearing Deposits (% of Total Deposits)	27.8%	As of Sept 30, 2025
Non-Interest Expense YoY Increase	$0.8 million or 6.9%	Q3 2025 vs Q3 2024

You'll want to track the year-to-date increase in salaries and benefits, as that is clearly driving the rise in non-interest expense. Finance: draft 13-week cash view by Friday.

Hawthorn Bancshares, Inc. (HWBK) - Canvas Business Model: Revenue Streams

You're looking at how Hawthorn Bancshares, Inc. actually brings in the money, which for a bank like this, boils down to interest earned versus fees collected. Honestly, the core of the business is still the balance sheet spread.

For the third quarter of 2025, the primary driver was Net Interest Income (NII) from lending activities, which totaled $\mathbf{\$16.9 \text{ million}}$. This figure reflects the difference between the interest income generated from loans and securities and the interest expense paid on deposits and borrowings. Management noted that the Net Interest Margin (FTE) expanded to $\mathbf{3.97\%}$ in Q3 2025, up from $\mathbf{3.36\%}$ in the prior year quarter, driven by higher loan yields and contained deposit costs.

The secondary, but still important, component is Non-interest income. For Q3 2025, this stream was $\mathbf{\$3.7 \text{ million}}$. This income category is where you find the revenue from services provided, which is key for diversification.

Here's a quick look at the main Q3 2025 revenue components for Hawthorn Bancshares, Inc.:

Revenue Component	Q3 2025 Amount	YoY Change Context
Net Interest Income (NII)	$\mathbf{\$16.9 \text{ million}}$	Increase of $\mathbf{\$2.5 \text{ million}}$ from prior year quarter
Total Non-interest Income	$\mathbf{\$3.7 \text{ million}}$	Decrease of $\mathbf{1.8\%}$ from prior year quarter
Total Reported Revenue	$\mathbf{\$20.21 \text{ million}}$	Up $\mathbf{14.74\%}$ year over year

The CEO specifically pointed to growth in the wealth management group during the Q3 2025 results call, suggesting that fees from wealth management, trust, and brokerage services are a growing part of that non-interest income pie. You can see this momentum in the nine-month figures, where NII was $\mathbf{\$48.3 \text{ million}}$, an increase of $\mathbf{\$5.1 \text{ million}}$ compared to the first nine months of 2024.

The remaining revenue streams, which fall under non-interest income, include:

• Loan origination and servicing fees, which would capture income from originating new loans or servicing existing ones, including any mortgage brokerage income.
• Dividends and interest earned from the portfolio of investment securities held by Hawthorn Bancshares, Inc.

For the nine months ended September 30, 2025, total non-interest income was $\mathbf{\$10.7 \text{ million}}$. That's a slight dip of $\mathbf{\$0.1 \text{ million}}$ compared to the same period in 2024. Still, the growth in core lending income, evidenced by the $\mathbf{3.5\%}$ sequential loan growth in Q3 2025, is definitely the story here.

The total revenue for the trailing twelve months ending September 30, 2025, reached $\mathbf{\$77.61 \text{ million}}$. That represents significant growth of $\mathbf{255.6\%}$ year over year, though you should check the specific components driving that massive annual jump, as reported revenue figures can sometimes be calculated differently across reporting periods.