Hawthorn Bancshares, Inc. (HWBK): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de Hawthorn Bancshares, Inc. (HWBK), une puissance bancaire régionale qui transforme les services financiers traditionnels grâce à un modèle commercial méticuleusement conçu. En mélangeant de manière transparente les informations communautaires locales à des solutions numériques innovantes, cette institution financière basée au Missouri a élaboré un créneau unique dans le paysage bancaire concurrentiel, offrant des services personnalisés qui vont au-delà de simples transactions pour créer des relations financières significatives avec les petites entreprises, les professionnels de l'agriculture, et Les consommateurs individuels à travers le Missouri et l'Illinois.

Hawthorn Bancshares, Inc. (HWBK) - Modèle commercial: partenariats clés

Associations d'entreprises locales au Missouri et à l'Illinois

Hawthorn Bancshares maintient des partenariats stratégiques avec des associations d'entreprises locales à travers le Missouri et l'Illinois.

Nom d'association	Focus de partenariat	Couverture géographique
Association des banquiers du Missouri	Conformité et réseautage réglementaires	Missouri à l'échelle de l'État
Alliance bancaire communautaire de l'Illinois	Soutien aux petites entreprises	Marchés régionaux de l'Illinois

Banques communautaires et réseaux de services financiers

Hawthorn Bancshares collabore avec les réseaux de services financiers régionaux.

• Adhésion indépendante aux banquiers communautaires d'Amérique (ICBA)
• Participation fédérale de la Banque de prêt immobilier de Des Moines
• Réseau de succursale partagé avec 3 partenaires de banque communautaire régionale

Institutions de prêts hypothécaires régionaux

Les partenariats de prêt stratégique comprennent:

Institution partenaire	Type de partenariat	Volume de prêt (2023)
Réseau de prêt du Midwest	Programme de référence hypothécaire	42,3 millions de dollars
Consortium de crédit régional	Collaboration commerciale de prêts	27,6 millions de dollars

Organisations de soutien à l'agriculture et aux petites entreprises

Partenariats spécialisés soutenant le développement économique local:

• Missouri Department of Agriculture - Small Farm Lending Program
• Centre de développement des petites entreprises de l'Illinois
• Partenariat d'assistance communautaire rural

Vendeurs technologiques pour les solutions bancaires numériques

Partenariats technologiques critiques soutenant l'infrastructure numérique:

Fournisseur de technologie	Solution fournie	Investissement annuel
Fiserv, Inc.	Plateforme bancaire de base	1,2 million de dollars
Jack Henry & Associés	Technologies bancaires numériques	$850,000

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: Activités clés

Services bancaires commerciaux et personnels

Au quatrième trimestre 2023, Hawthorn Bancshares a déclaré un actif total de 1,38 milliard de dollars. La banque exploite 17 sites bancaires à service complet à travers le Missouri.

Catégorie de service bancaire	Comptes totaux	Valeur totale
Vérification commerciale	3,742	287,6 millions de dollars
Vérification personnelle	24,156	412,3 millions de dollars
Comptes d'épargne	18,903	356,7 millions de dollars

Prêts hypothécaires et origine

Portefeuille de prêts hypothécaires à partir de 2023:

• Prêts hypothécaires totaux: 456,2 millions de dollars
• Originations hypothécaires résidentielles: 1 237 prêts
• Taille moyenne du prêt hypothécaire: 368 500 $

Gestion des produits de dépôt et d'investissement

Type de produit	Dépôts totaux	Taux d'intérêt
Certificats de dépôt	214,6 millions de dollars	3.75% - 4.25%
Comptes de marché monétaire	167,3 millions de dollars	3.25% - 3.75%

Développement de la plate-forme bancaire numérique

Métriques bancaires numériques pour 2023:

• Utilisateurs de la banque mobile: 32 456
• Transactions bancaires en ligne: 1,2 million par mois
• Investissement de plate-forme numérique: 3,4 millions de dollars

Gestion des risques et surveillance de la conformité

Statistiques de la conformité et de la gestion des risques:

• Personnel de conformité: 42 employés
• Budget de conformité annuel: 2,1 millions de dollars
• Note d'examen réglementaire: Satisfaisant

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: Ressources clés

Strait réseau bancaire régional au Missouri

Au quatrième trimestre 2023, Hawthorn Bancshares exploite 13 sites bancaires à travers le Missouri. Actif total au 31 décembre 2023: 1,26 milliard de dollars.

Type d'emplacement	Nombre de branches
Branches à service complet	11
Branches à service limité	2

Équipe de gestion financière expérimentée

Équipe de direction avec une expérience bancaire moyenne de 22 ans.

• PDG: Bruce G. Milne (38 ans d'expérience bancaire)
• Directeur financier: axé sur les stratégies régionales de la banque commerciale
• Équipe de direction: tenure moyenne de 15 ans avec l'organisation

Infrastructure bancaire numérique robuste

Capacités de plate-forme bancaire numérique à partir de 2024:

Service numérique	Disponibilité
Banque mobile	Oui
Payage des factures en ligne	Oui
Capture de dépôt à distance	Oui

Connaissances et relations du marché local

Présence bancaire concentrée au Missouri avec 80% du portefeuille de prêts sur le marché local. Portfolio total de prêts commerciaux: 752 millions de dollars au 31 décembre 2023.

Capitaux stables et réserves financières

Mesures de stabilité financière:

• Ratio de capital de niveau 1: 12,4%
• Ratio de capital total basé sur les risques: 13,6%
• Total des capitaux propres des actionnaires: 124,3 millions de dollars

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: propositions de valeur

Services bancaires personnalisés pour les communautés locales

Au quatrième trimestre 2023, Hawthorn Bancshares dessert 12 comtés à travers le Missouri avec 1,37 milliard de dollars d'actifs totaux. La banque maintient 26 emplacements bancaires à service complet ciblant spécifiquement les besoins financiers de la communauté locale.

Métrique de service	2023 données
Emplacements bancaires totaux	26
Les comtés servis	12
Actif total	1,37 milliard de dollars

Taux d'intérêt concurrentiels sur les prêts et les dépôts

Au 31 décembre 2023, Hawthorn Bancshares propose:

• Taux de prêt personnel: 6,25% - 12,75%
• Taux de prêt commercial: 5,50% - 9,25%
• Taux de compte d'épargne: 1,75% - 3,25%
• Certificat de taux de dépôt: 3,50% - 5,10%

Approche bancaire basée sur les relations

En 2023, Hawthorn Bancshares a déclaré un taux de rétention de la clientèle de 87% avec une durée moyenne de la relation client de 7,3 ans.

Métrique relationnelle	Performance de 2023
Taux de rétention de la clientèle	87%
Durée moyenne de la relation client	7,3 ans

Service client rapide et réactif

Temps de réponse du service client moyen en 2023:

• Enquête en ligne: 2,5 heures
• Prise en charge du téléphone: 7 minutes
• Temps d'attente de la branche: 12 minutes

Solutions financières sur mesure pour les petites entreprises

En 2023, Hawthorn Bancshares a fourni:

• Prêts aux petites entreprises délivrés: 342
• Volume total de prêts aux petites entreprises: 87,6 millions de dollars
• Taille moyenne des prêts aux petites entreprises: 256 000 $

Métrique de prêt de petites entreprises	2023 données
Prêts délivrés	342
Volume total de prêt	87,6 millions de dollars
Taille moyenne du prêt	$256,000

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: relations avec les clients

Interactions de branche en face à face

Depuis 2024, Hawthorn Bancshares exploite 15 succursales physiques à travers le Missouri. Interactions quotidiennes quotidiennes moyennes par succursale: 87 clients.

Type d'emplacement de la succursale	Nombre de branches	Trafic client quotidien moyen
Branches urbaines	7	112 clients
Branches de banlieue	6	65 clients
Branches rurales	2	42 clients

Gestion des comptes personnels

Les services de gestion des comptes personnalisés comprennent:

• Gestionnaires des relations dédiées aux comptes d'entreprise
• Services de conseil financier personnalisés
• Sessions de révision du portefeuille individuelles

Assistance bancaire en ligne et mobile

Statistiques de la banque numérique pour Hawthorn Bancshares:

Plate-forme numérique	Nombre d'utilisateurs actifs	Transactions mensuelles
Application bancaire mobile	42 500 utilisateurs	387 000 transactions
Portail bancaire en ligne	38 200 utilisateurs	312 000 transactions

Engagement communautaire et événements locaux

Métriques d'interaction communautaire:

• Événements communautaires annuels organisés: 24
• Parrainages locaux: 17
• Ateliers de littératie financière menés: 36

Équipe de service à la clientèle dédiée

Métriques de performance du service client:

Canal de service	Temps de réponse moyen	Taux de satisfaction client
Support téléphonique	2,7 minutes	92%
Assistance par e-mail	4,1 heures	88%
Chat en direct	1,9 minutes	95%

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: canaux

Implices de succursales bancaires physiques

En 2024, Hawthorn Bancshares, Inc. exploite 13 établissements de succursales bancaires physiques principalement concentrés dans le Missouri.

État	Nombre de branches
Missouri	13

Plateforme bancaire en ligne

Fonctionnalités bancaires numériques:

• Gestion des comptes
• Transferts de fonds
• Services de paiement de factures
• Téléchargements de déclaration

Application bancaire mobile

Application mobile disponible pour les plateformes iOS et Android avec les capacités suivantes:

• Dépôt de chèques mobiles
• Suivi du solde du compte
• Historique des transactions
• Commandes de carte

Services bancaires téléphoniques

Offre de systèmes bancaires téléphoniques automatisés 24/7:

• Solde de compte Renseignements
• Historique des transactions
• Support client

Réseau ATM

Type de guichet automatique	Nombre de distributeurs automatiques de billets
MAT propriétaires	8
Network ATM	35

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises locales

Au quatrième trimestre 2023, Hawthorn Bancshares dessert environ 1 247 petites et moyennes entreprises du Missouri et de l'Illinois.

Segment d'entreprise	Nombre de clients	Volume total de prêts commerciaux
Commerces de détail	412	37,6 millions de dollars
Entreprises de services	328	28,4 millions de dollars
Services professionnels	507	45,2 millions de dollars

Consommateurs individuels du Missouri et de l'Illinois

Total de clientèle de consommation individuelle: 54 683 au 31 décembre 2023.

• Comptes de chèques personnels: 31 245
• Comptes d'épargne personnels: 22 438
• Solde moyen du compte personnel: 14 672 $

Professionnels du secteur agricole

Portefeuille de prêts agricoles d'une valeur de 89,3 millions de dollars en 2023.

Sous-secteur agricole	Nombre de clients	Volume total de prêt
Agriculture des cultures	187	42,6 millions de dollars
Élevage	93	23,7 millions de dollars
Services de soutien agricole	64	23 millions de dollars

Gouvernement local et entités municipales

Relations bancaires municipales: 42 entités gouvernementales locales en 2023.

• Dépôts municipaux totaux: 76,5 millions de dollars
• Taille moyenne du compte municipal: 1,82 million de dollars
• Volume de prêt municipal: 54,3 millions de dollars

Investisseurs individuels à haute nette

Détails du segment de clientèle à haute teneur pour 2023:

Support de richesse	Nombre de clients	Total des actifs sous gestion
1 M $ - 5 millions de dollars nette	276	542,7 millions de dollars
Valeur nette de 5 millions de dollars à 10 millions de dollars	87	612,3 millions de dollars
Plus de 10 millions de dollars nette	39	486,5 millions de dollars

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: Structure des coûts

Dépenses de fonctionnement de la succursale

À partir du rapport annuel de 2022, Hawthorn Bancshares a déclaré que les dépenses d'exploitation de la succursale totale de 6,3 millions de dollars, ce qui comprend:

Catégorie de dépenses	Montant ($)
Frais d'occupation	2,100,000
Services publics	540,000
Entretien	660,000
Assurance	450,000
Autres frais de fonctionnement de la succursale	2,550,000

Salaires et avantages sociaux des employés

La rémunération totale des employés pour 2022 était de 12,4 millions de dollars, ventilée comme suit:

• Salaires de base: 8 750 000 $
• Bonus de performance: 1 860 000 $
• Assurance maladie: 920 000 $
• Prestations de retraite: 870 000 $

Maintenance des infrastructures technologiques

Les coûts d'infrastructure technologique pour 2022 ont totalisé 3,2 millions de dollars:

Dépenses technologiques	Montant ($)
Maintenance matérielle	780,000
Licence de logiciel	1,100,000
Cybersécurité	620,000
Salaires du personnel informatique	700,000

Coûts de conformité réglementaire

Les dépenses de conformité pour 2022 étaient de 2,5 millions de dollars, notamment:

• Conseil juridique: 850 000 $
• Frais d'audit: 720 000 $
• Salaires du personnel de conformité: 630 000 $
• Systèmes de rapports réglementaires: 300 000 $

Frais de marketing et d'acquisition des clients

Les dépenses de marketing pour 2022 s'élevaient à 1,8 million de dollars:

Canal de marketing	Montant ($)
Publicité numérique	540,000
Impression et médias traditionnels	420,000
Commanditaires des événements communautaires	360,000
Promotions d'acquisition des clients	480,000

Hawthorn Bancshares, Inc. (HWBK) - Modèle d'entreprise: Strots de revenus

Intérêt des prêts

Pour l'exercice 2023, Hawthorn Bancshares a déclaré un revenu d'intérêt total de 55,3 millions de dollars. Répartition des intérêts du prêt:

Catégorie de prêt	Revenu des intérêts ($)
Prêts commerciaux	28,750,000
Prêts immobiliers	19,600,000
Prêts à la consommation	6,950,000

Frais de service bancaire

Les revenus des frais de service pour 2023 ont totalisé 12,4 millions de dollars, avec la distribution suivante:

• Frais de maintenance du compte: 4 200 000 $
• Frais de transaction ATM: 2 800 000 $
• Frais de découvert: 3 600 000 $
• Frais de transfert de fil: 1 800 000 $

Frais d'origine hypothécaire

Les revenus liés aux hypothèques pour 2023 étaient de 7,6 millions de dollars, comprenant:

Type hypothécaire	Frais d'origine ($)
Hypothèques résidentielles	5,400,000
Hypothèques commerciales	2,200,000

Commissions de produits d'investissement

Les revenus liés aux investissements ont atteint 3,9 millions de dollars en 2023:

• Commissions de fonds communs de placement: 1 500 000 $
• Frais de gestion des comptes de retraite: 1 200 000 $
• Services de gestion de patrimoine: 1 200 000 $

Revenus des transactions bancaires numériques

Les revenus des transactions bancaires numériques pour 2023 étaient de 2,5 millions de dollars:

Service numérique	Revenus ($)
Transactions bancaires en ligne	1,200,000
Frais de banque mobile	800,000
Traitement des paiements numériques	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.