📊 HWBK Key Takeaways
Is Hawthorn Bancshares, Inc.. (HWBK) a Good Investment?
Hawthorn Bancshares demonstrates strong fundamental growth with revenue up 48.2% YoY and net income up 30.4% YoY, coupled with excellent operating margins of 29.2% and zero leverage. However, the bank's critically low ROE of 3.3% and ROA of 0.3% indicate severe capital efficiency problems, suggesting earnings growth is not translating into shareholder value creation typical for banking institutions.
Hawthorn Bancshares exhibits solid core profitability (ROE 13.7%, ROA 1.3%) with strong margins and ample interest coverage, supported by positive free cash generation and a deposit-funded balance sheet. While revenue growth is robust, flat net income suggests near‑term pressure from funding costs or credit provisioning, leaving operating leverage to be realized. If deposit costs stabilize and credit remains benign, earnings durability and efficiency should improve.
Why Buy Hawthorn Bancshares, Inc.. Stock? HWBK Key Strengths
- Exceptional revenue growth of 48.2% year-over-year
- Excellent profit margins with 29.2% operating margin and 23.5% net margin
- Zero financial leverage (0.00x debt/equity) providing fortress balance sheet
- Solid free cash flow generation with 25% FCF margin and $6.1M FCF
- Strong interest coverage ratio of 13.8x indicating safety on obligations
- Consistent earnings growth with 31.4% diluted EPS increase
- Healthy profitability (ROE 13.7%, ROA 1.3%) and 24.4% net margin
- Very strong interest coverage (56.5x) indicating resilient earnings capacity
- Positive FCF (23.4% margin) and low balance‑sheet leverage (D/E 0x)
HWBK Stock Risks: Hawthorn Bancshares, Inc.. Investment Risks
- Dangerously low ROE of 3.3% for a bank—far below industry norms of 10-15%
- ROA of 0.3% indicates severe inefficiency in deploying $1.9B in assets
- Unusual zero-debt capital structure for a bank may signal access issues or structural constraints
- Only 1 Form 4 insider filing in 90 days suggests minimal insider confidence in stock
- Net income of $5.7M on $1.9B assets implies poor asset utilization efficiency
- Data freshness at March 31, 2026 may not reflect current quarter performance
- Flat net income despite strong revenue growth suggests cost or credit pressure
- Rate sensitivity: potential NIM compression as funding costs normalize
- Community bank scale and geographic concentration increase deposit competition risk
Key Metrics to Watch
- Return on Equity (ROE) trend—needs to improve significantly toward 10%+ range
- Return on Assets (ROA)—critical metric for banking profitability assessment
- Asset utilization efficiency and net interest margin stability
- Insider buying activity and Form 4 filings for confidence signals
- Loan growth versus deposit growth sustainability of 48% revenue expansion
- Net interest margin (NIM)
- Credit quality (nonperforming assets/charge‑offs)
Hawthorn Bancshares, Inc.. (HWBK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HWBK Profit Margin, ROE & Profitability Analysis
HWBK vs Finance Sector: How Hawthorn Bancshares, Inc.. Compares
How Hawthorn Bancshares, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hawthorn Bancshares, Inc.. Stock Overvalued? HWBK Valuation Analysis 2026
Based on fundamental analysis, Hawthorn Bancshares, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hawthorn Bancshares, Inc.. Balance Sheet: HWBK Debt, Cash & Liquidity
HWBK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hawthorn Bancshares, Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.14 reflects profitable operations.
HWBK Revenue Growth, EPS Growth & YoY Performance
Hawthorn Bancshares, Inc.. Dividends, Buybacks & Capital Allocation
HWBK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hawthorn Bancshares, Inc.. (CIK: 0000893847)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HWBK
What is the AI rating for HWBK?
Hawthorn Bancshares, Inc.. (HWBK) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HWBK's key strengths?
Claude: Exceptional revenue growth of 48.2% year-over-year. Excellent profit margins with 29.2% operating margin and 23.5% net margin. ChatGPT: Healthy profitability (ROE 13.7%, ROA 1.3%) and 24.4% net margin. Very strong interest coverage (56.5x) indicating resilient earnings capacity.
What are the risks of investing in HWBK?
Claude: Dangerously low ROE of 3.3% for a bank—far below industry norms of 10-15%. ROA of 0.3% indicates severe inefficiency in deploying $1.9B in assets. ChatGPT: Flat net income despite strong revenue growth suggests cost or credit pressure. Rate sensitivity: potential NIM compression as funding costs normalize.
What is HWBK's revenue and growth?
Hawthorn Bancshares, Inc.. reported revenue of $24.4M.
Does HWBK pay dividends?
Hawthorn Bancshares, Inc.. pays dividends, with $1.4M distributed to shareholders in the trailing twelve months.
Where can I find HWBK SEC filings?
Official SEC filings for Hawthorn Bancshares, Inc.. (CIK: 0000893847) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HWBK's EPS?
Hawthorn Bancshares, Inc.. has a diluted EPS of $0.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HWBK a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hawthorn Bancshares, Inc.. has a BUY rating with 69% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HWBK stock overvalued or undervalued?
Valuation metrics for HWBK: ROE of 3.3% (sector avg: 12%), net margin of 23.5% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HWBK stock in 2026?
Our dual AI analysis gives Hawthorn Bancshares, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HWBK's free cash flow?
Hawthorn Bancshares, Inc..'s operating cash flow is $8.0M, with capital expenditures of $1.9M. FCF margin is 25.0%.
How does HWBK compare to other Finance stocks?
Vs Finance sector averages: Net margin 23.5% (avg: 25%), ROE 3.3% (avg: 12%), current ratio N/A (avg: 1.2).