HAWTHORN BANCSHARES, INC. (HWBK) SEC Filings & Earnings Calls

Integration risk from merging two banks, including customer conversion and operational alignment.

“Hawthorn Bank will initiate the integration of Farmers State Bank into its platform, with customer conversion anticipated to take place during the first quarter of 2027.” · word for word

Asset quality deterioration

“Non-performing assets increased from $5.186M to $7.500M year-over-year”

Loan portfolio contraction

“Loans held for investment decreased $70.4M from December 2025”

Deposit outflow

“Total deposits decreased $66.0M from December 2025”

Loan and deposit balances declining; potential demand softness or competitive pressure.

“Loans decreased $37.8 million, or 2.6%, and deposits decreased $30.1 million, or 2.0%, compared to the prior quarter” · word for word

Non-performing assets increased to 0.53% from 0.35% a year ago, though still low.

“Non-performing assets to total loans was 0.53% at June 30, 2026, compared to 0.35% at June 30, 2025” · word for word

Shareholder approval still required; integration risks remain.

“The transaction remains subject to the approval of FBI’s shareholders and the satisfaction or waiver of other customary closing conditions.” · word for word

Increase in non-performing loans

“Non-performing loans increased to $6.8M at March 31, 2026 from $2.5M at March 31, 2025.”

Loan portfolio contraction

“Loans held for investment decreased $32.6 million to $1.45 billion as of March 31, 2026 compared to December 31, 2025.” · word for word

Loan and deposit balances declined sequentially, indicating potential balance sheet contraction.

“Loans decreased $32.6 million, or 2.2%, and deposits decreased $35.8 million, or 2.3%, compared to the prior quarter.” · word for word

Non-performing assets increased year-over-year, though absolute level remains low.

“Non-performing assets to total loans was 0.47% at March 31, 2026 compared to 0.21% at March 31, 2025.”

Local economic concentration risk

“The profitability of the Company is dependent on the profitability of the Bank, which operates out of central and west-central Missouri and extends into the Kansas City MSA.” · word for word

Interest rate risk

“At December 31, 2025, the Company's rate shock scenario models indicated that annual net interest income could change by as much as (0.43)% or (1.58)% should interest rates rise or fall, respectively, 200 basis points from their current level over a one-year period.” · word for word

Competition from fintech and digital assets

“Emerging financial technologies such as digital assets, stablecoins, and distributed ledger systems may reduce the demand for traditional banking services and create new competitive pressures that adversely affect our business.” · word for word

Cybersecurity risk

“Like other financial institutions, the Company experiences malicious cyber activity on an ongoing basis directed at its websites, computer systems, software, networks and users.” · word for word

Credit risk from small business borrowers

“We provide lending to many small- and medium-sized businesses, which generally have fewer financial resources than larger entities (in terms of capital or borrowing capacity).” · word for word

Loan portfolio contraction in Q4 2025 (down 1.8% sequentially) may signal muted loan demand or tighter credit standards.

“Loans decreased $27.2 million, or 1.8%, to $1.49 billion from $1.51 billion at September 30, 2025.” · word for word

Non-performing assets increased sequentially

“Total non-performing assets were $7.3 million, or 0.48% of total loans, at September 30, 2025 compared to $4.2 million, or 0.29% of total loans, at December 31, 2024.” · word for word

FHLB borrowings increased significantly

“Total FHLB advances and other borrowings increased $95.6 million to $177.1 million as of September 30, 2025, compared to $81.5 million as of December 31, 2024.” · word for word

Non-performing assets increased QoQ due to one commercial relationship moving to non-accrual.

“Non-performing assets totaled $7.3 million at September 30, 2025, compared to $5.2 million and $8.5 million at June 30, 2025 and September 30, 2024, respectively. The increase in non-performing assets during quarter compared to the prior quarter was due to the movement of one commercial relationship to non-accrual status.” · word for word