Hawthorn Bancshares, Inc. (HWBK): Marketing Mix Analysis [Dec-2025 Updated]

As a seasoned analyst, I can tell you that looking at Hawthorn Bancshares, Inc.'s (HWBK) marketing mix as of late 2025 reveals a clear playbook: double down on core relationships to drive superior pricing power. You'll see their Product strategy bolsters commercial services with a growing wealth management group, while their Place remains firmly rooted in Central and Western Missouri with about 18-20 branches. But the real juice is in the Price; their Q3 2025 Net Interest Margin expanded to 3.97%, fueled by loan yields hitting 6.12%, all while keeping deposit costs disciplined around 2.35%. If you want to see exactly how this local focus, supported by a recent $10.0 million stock repurchase, translates into tangible financial strength, check out the precise breakdown of their four P's strategy below.

Hawthorn Bancshares, Inc. (HWBK) - Marketing Mix: Product

You're looking at the core offerings of Hawthorn Bancshares, Inc. as of late 2025, which centers on full-service commercial and consumer banking solutions delivered through Hawthorn Bank across Missouri and Kansas.

The foundation of the product offering rests on core deposit solutions. As of September 30, 2025, total deposits stood at $1.53 billion. You can see the composition of these core funding sources below, noting the reliance on non-interest-bearing accounts for a portion of that base.

The lending portfolio is diverse, supporting both families and businesses. This includes financing for commercial real estate, agricultural operations, and residential mortgages, alongside consumer lending like auto loans and home equity lines of credit. The yield on this asset base is a key performance indicator for the lending product line.

• - Consumer lending solutions include residential mortgages, home equity lines of credit, auto loans, and personal loans.
• - Commercial financing covers commercial real estate, equipment acquisition, working capital, and agricultural needs.
• - The yield earned on average loans held for investment reached 6.12% on an FTE basis for the third quarter of 2025.

Beyond traditional lending and deposits, Hawthorn Bancshares, Inc. actively develops its fee-based services. The company maintains a treasury management group providing essential tools for business clients. This suite helps optimize cash flow and operational efficiency for businesses.

• - Treasury management services include ACH origination and wire transfers.
• - Remote deposit capture allows businesses to save trips to the bank.
• - Other business tools include Positive Pay and merchant services.

Furthermore, the wealth management group is a noted area of focus, with the Chief Executive Officer specifically mentioning growth within this division during the Q3 2025 results discussion. This group offers investment advisory, fiduciary, and estate planning services.

Hawthorn Bancshares, Inc. (HWBK) - Marketing Mix: Place

You're looking at how Hawthorn Bancshares, Inc. gets its services into the hands of its customers. For a financial institution, Place is about physical footprint and digital reach, which is critical for trust and accessibility.

Community bank model concentrated in Central and Western Missouri. Hawthorn Bancshares, Inc. maintains a deep focus on its core geographic area, operating as a true Midwest community bank. This strategy means distribution is inherently localized, supporting families, local businesses, and community groups across Missouri. This local focus supports their community-focused approach to banking services.

Operates a network of approximately 18-20 full-service branches across key Missouri and Kansas markets. While the prompt suggests a range of 18-20, we know Hawthorn Bank has 18 locations throughout Missouri alone, serving communities like Clinton, Columbia, Springfield, and Warsaw. Furthermore, the company has expanded its physical presence into Kansas, notably establishing office space in Johnson County, Kansas, in November 2024 to grow its wealth management portfolio in that region.

Headquarters located in Jefferson City, Missouri. The principal executive offices for Hawthorn Bancshares, Inc. and its subsidiary, Hawthorn Bank, are situated at 132 East High Street, Jefferson City, Missouri, 65101. This location serves as the central hub for the holding company's operations.

The distribution strategy relies on a blend of traditional and modern channels to serve its client base, which, as of December 31, 2024, managed $1.8 billion in assets. Here's a look at the scale of their distribution footprint as of mid-2025:

Distribution utilizes a dual approach: physical branches and robust digital banking platforms. You get the benefit of in-person service where needed, combined with the convenience of digital access. The company offers internet banking services, which is a key component of its modern distribution strategy, alongside its physical locations.

Focus on local decision-making to serve specific community needs. This is central to the community bank positioning. It means that decisions regarding lending and service delivery are often made closer to the customer, rather than being dictated by a distant corporate center. This local approach helps them connect with families and businesses for things like financing a first home or getting a business off the ground.

The accessibility of their services is supported by their financial scale; for instance, their Q1 2025 net income was reported at $5.4 million. This financial health underpins the ability to maintain and expand this dual distribution network.

• Headquarters City: Jefferson City, MO.
• Key Missouri Markets: Columbia, Springfield, Kansas City metro.
• Digital Service Offering: Internet banking.
• Recent Expansion Area: Johnson County, Kansas.

Finance: draft 13-week cash view by Friday.

Hawthorn Bancshares, Inc. (HWBK) - Marketing Mix: Promotion

Promotion for Hawthorn Bancshares, Inc. centers on reinforcing its community bank identity while strategically managing capital returns and emphasizing operational efficiency over broad, high-cost advertising.

The strategic focus remains on enhancing core relationship growth with customers. For instance, in the third quarter of 2025, Hawthorn Bancshares, Inc. reported loan portfolio growth driven by expanding customer relationships and attracting new customers, alongside growth in its wealth management group. Non-interest bearing demand deposits as a percent of total deposits stood at 27.8% as of September 30, 2025, indicating a stable core deposit base.

Community-centric marketing is executed through tangible local support. Hawthorn Bancshares, Inc. maintains its relationship-driven and community-focused approach through its multiple locations in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton, serving families and businesses for more than 150 years. This involves support of local civic groups and schools, though specific dollar amounts for these sponsorships are not publicly detailed in recent financial releases.

Investor relations promotion is concrete, signaling management confidence and commitment to shareholder value. The Board approved a new common stock repurchase program on June 5, 2025, authorizing the repurchase of up to $10.0 million in market value of the Company's common stock. This new program replaced the prior one.

Management emphasizes expense control, which supports profitability and reduces the need for aggressive, high-cost advertising campaigns. The efficiency ratio for the third quarter of 2025 was 62.30%, an improvement from 66.23% in the prior year quarter. Total non-interest expense for Q3 2025 was $12.8 million. This focus on efficiency helps fund shareholder returns, such as the new repurchase program and the quarterly dividend of $0.20 per share.

Digital promotion is geared toward driving customer convenience, aligning with broader industry trends. While Hawthorn Bancshares, Inc.'s specific digital adoption figures aren't public, the environment shows that over 83% of U.S. adults used digital banking services as of 2025. Furthermore, 72% of global banking customers prefer using mobile apps for core services. The company promotes its online and mobile banking capabilities to meet this demand for 24/7 access and convenience. For context, 55% of consumers prefer mobile banking over desktop banking, where only 22% use a computer for account management.

Hawthorn Bancshares, Inc. (HWBK) - Marketing Mix: Price

Pricing for Hawthorn Bancshares, Inc. centers on the spread generated from its asset and liability structure, reflecting competitive positioning in lending and deposit gathering. This involves setting rates that capture value while remaining accessible to the target market of individuals, small businesses, agricultural enterprises, and commercial clients across southwest Missouri and select nearby states.

The effectiveness of Hawthorn Bancshares, Inc.'s pricing strategy is evident in its margin performance. Net Interest Margin (FTE) expanded to 3.97% in Q3 2025, reflecting pricing power. This is an improvement from 3.89% in Q2 2025 and 3.36% for the third quarter of 2024. This margin expansion was driven by higher asset yields and disciplined liability costs.

On the asset side, loan pricing drove the yield on average loans (FTE) to 6.12% in Q3 2025. This yield compares to 5.98% in the prior quarter and 5.83% in the prior year quarter. This upward trend in asset yield is a direct measure of successful loan pricing strategy.

The liability side shows a focus on containing funding costs. The deposit pricing strategy contained the average cost of deposits to 2.35% in Q2 2025. For Q3 2025, the average cost of deposits was 2.36%, down from 2.74% in the prior year quarter. Furthermore, non-interest bearing demand deposits as a percent of total deposits was 27.8% as of September 30, 2025.

For shareholders, the price of ownership is supported by consistent capital returns and underlying book value. The quarterly cash dividend was maintained at $0.20 per share, with the payment for the quarter ending September 30, 2025, payable on October 1, 2025, and the next approved dividend of $0.20 per common share payable January 1, 2026, to shareholders of record on December 15, 2025. Book value per share stood strong at $23.76 as of September 30, 2025, an increase of 5.5% compared to the prior quarter.

Here's a quick look at the key pricing and yield metrics for Hawthorn Bancshares, Inc. as of late 2025:

The market pricing for the equity reflects these fundamentals. As of a recent trading day, HWBK shares were trading at $30.89, with a 52-week range noted between $25.21 and $35.95 per share. The annual dividend is reported at $0.80 per share, yielding 2.35%.

You can see the consistency in shareholder distributions below:

• Quarterly Cash Dividend: $0.2000 (Payable Jan 01, 2026)
• Previous Quarterly Cash Dividend: $0.200 (Paid Oct 01, 2025)
• Prior Quarterly Cash Dividend: $0.200 (Paid Jul 01, 2025)
• Dividend Before That: $0.190 (Paid Apr 01, 2025)

Finance: draft 13-week cash view by Friday.