Buy Or Sell Opportunity • Jun 22
Now 21% undervalued Over the last 90 days, the stock has risen 17% to US$38.18. The fair value is estimated to be US$48.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.6% over the last 3 years. Earnings per share has grown by 35%. Upcoming Dividend • Jun 08
Upcoming dividend of US$0.21 per share Eligible shareholders must have bought the stock before 15 June 2026. Payment date: 01 July 2026. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of American dividend payers (4.2%). In line with average of industry peers (2.3%). Declared Dividend • May 04
First quarter dividend of US$0.21 announced Shareholders will receive a dividend of US$0.21. Ex-date: 15th June 2026 Payment date: 1st July 2026 Dividend yield will be 2.4%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 6.6% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 01
First quarter 2026 earnings released: EPS: US$0.98 (vs US$0.77 in 1Q 2025) First quarter 2026 results: EPS: US$0.98 (up from US$0.77 in 1Q 2025). Revenue: US$21.4m (up 12% from 1Q 2025). Net income: US$6.78m (up 26% from 1Q 2025). Profit margin: 32% (up from 28% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Apr 30
Hawthorn Bancshares, Inc. (NasdaqGS:HWBK) entered into an agreement and plan of reorganization to acquire FSC Bancshares, Inc. for $28.3 million. Hawthorn Bancshares, Inc. (NasdaqGS:HWBK) entered into an agreement and plan of reorganization to acquire FSC Bancshares, Inc. for $28.3 million on April 29, 2026. Under the agreement, Hawthorn Holdco, Inc. will first merge into FSC Bancshares, making FSC Bancshares a wholly owned subsidiary of Hawthorn Bancshares. FSC Bancshares will then merge into Hawthorn Bancshares, with Hawthorn Bancshares surviving the merger. Following these steps, Farmers State Bank will merge into Hawthorn Bank, with Hawthorn Bank as the surviving bank. Under the terms of the proposed transaction, FSC Bancshares shareholders will receive 413,101 shares of Hawthorn Bancshares common stock and $14 million of cash. The Reorganization Agreement further provides that a termination fee of $1.12 million will be payable by FSC Bancshares in connection with the termination of the Reorganization Agreement under certain circumstances.
The proposed transaction is expected to be completed in the third quarter of 2026, subject to the satisfaction of customary closing conditions, including approval by FSC Bancshares shareholders, listing on Nasdaq of the shares of Hawthorn Bancshares common stock to be issued in the Merger, U.S. Securities and Exchange Commission having declared effective under the Securities Act of 1933, and the receipt of all required regulatory approvals. The deal has been unanimously approved by the boards of directors of Hawthorn Bancshares and FSC Bancshares. Hawthorn Bancshares expects the proposed transaction to be accretive to earnings per share by approximately 20% on fully phased in basis. Tangible book value dilution at closing is expected to be approximately 9.8% and earned back in approximately 3.0 years using the crossover method.
Raymond James & Associates, Inc. acted as financial advisor for Hawthorn Bancshares, Inc. Beth A. Whitaker of Hunton Andrews Kurth LLP acted as legal advisor for Hawthorn Bancshares, Inc. Northland Capital Markets acted as financial advisor for FSC Bancshares, Inc. McGregor K. Johnson of Stinson Leonard Street LLP acted as legal advisor for FSC Bancshares, Inc. Olsen Palmer LLC acted as fairness opinion provider for FSC Bancshares, Inc. Announcement • Apr 21
Hawthorn Bancshares, Inc., Annual General Meeting, Jun 02, 2026 Hawthorn Bancshares, Inc., Annual General Meeting, Jun 02, 2026. Location: 132 east high street, missouri 65101, jefferson city United States Reported Earnings • Mar 08
Full year 2025 earnings released: EPS: US$3.43 (vs US$2.61 in FY 2024) Full year 2025 results: EPS: US$3.43 (up from US$2.61 in FY 2024). Revenue: US$79.9m (up 11% from FY 2024). Net income: US$23.8m (up 30% from FY 2024). Profit margin: 30% (up from 25% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.89% (up from 3.41% in FY 2024). Cost-to-income ratio: 63.4% (down from 67.9% in FY 2024). Non-performing loans: 0.46% (up from 0.19% in FY 2024). Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 14% per year. Upcoming Dividend • Mar 06
Upcoming dividend of US$0.21 per share Eligible shareholders must have bought the stock before 13 March 2026. Payment date: 01 April 2026. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of American dividend payers (4.2%). In line with average of industry peers (2.4%). Buy Or Sell Opportunity • Feb 27
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.0% to US$32.99. The fair value is estimated to be US$42.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has grown by 19%. Declared Dividend • Feb 01
Fourth quarter dividend of US$0.21 announced Shareholders will receive a dividend of US$0.21. Ex-date: 13th March 2026 Payment date: 1st April 2026 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 30
Full year 2025 earnings released: EPS: US$3.44 (vs US$2.61 in FY 2024) Full year 2025 results: EPS: US$3.44 (up from US$2.61 in FY 2024). Revenue: US$79.9m (up 11% from FY 2024). Net income: US$23.8m (up 30% from FY 2024). Profit margin: 30% (up from 25% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jan 11
Now 21% undervalued Over the last 90 days, the stock has risen 7.6% to US$31.90. The fair value is estimated to be US$40.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Dec 26
Now 20% undervalued Over the last 90 days, the stock has risen 2.5% to US$32.21. The fair value is estimated to be US$40.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Upcoming Dividend • Dec 08
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 15 December 2025. Payment date: 01 January 2026. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of American dividend payers (4.4%). In line with average of industry peers (2.4%). Declared Dividend • Nov 02
Third quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 15th December 2025 Payment date: 1st January 2026 Dividend yield will be 2.6%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: US$0.89 (vs US$0.66 in 3Q 2024) Third quarter 2025 results: EPS: US$0.89 (up from US$0.66 in 3Q 2024). Revenue: US$20.3m (up 15% from 3Q 2024). Net income: US$6.13m (up 34% from 3Q 2024). Profit margin: 30% (up from 26% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 08
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 15 September 2025. Payment date: 01 October 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of American dividend payers (4.4%). In line with average of industry peers (2.5%). Declared Dividend • Aug 03
Second quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 15th September 2025 Payment date: 1st October 2025 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 31
Second quarter 2025 earnings released: EPS: US$0.88 (vs US$0.66 in 2Q 2024) Second quarter 2025 results: EPS: US$0.88 (up from US$0.66 in 2Q 2024). Revenue: US$19.7m (up 12% from 2Q 2024). Net income: US$6.10m (up 32% from 2Q 2024). Profit margin: 31% (up from 26% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 06
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 13 June 2025. Payment date: 01 July 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (4.8%). In line with average of industry peers (2.7%). Announcement • Jun 06
Hawthorn Bancshares, Inc. (NasdaqGS:HWBK) announces an Equity Buyback for $10 million worth of its shares. Hawthorn Bancshares, Inc. (NasdaqGS:HWBK) announces a share repurchase program. Under the program, the company will repurchase up to $10 million worth of its common shares. The program will be funded by the cash generated through cash on hand, operations and other sources. The repurchased shares will be held in treasury and may be used for general corporate purposes, including stock- based employee benefit plans and stock dividends. The program has no termination date. As at June 3, 2025, the company has 6,946,656 issued and outstanding shares. Declared Dividend • May 04
First quarter dividend increased to US$0.20 Dividend of US$0.20 is 5.3% higher than last year. Ex-date: 13th June 2025 Payment date: 1st July 2025 Dividend yield will be 2.6%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 10% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 02
First quarter 2025 earnings released: EPS: US$0.77 (vs US$0.63 in 1Q 2024) First quarter 2025 results: EPS: US$0.77 (up from US$0.63 in 1Q 2024). Revenue: US$19.1m (up 6.1% from 1Q 2024). Net income: US$5.38m (up 21% from 1Q 2024). Profit margin: 28% (up from 25% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Apr 23
Hawthorn Bancshares, Inc., Annual General Meeting, Jun 03, 2025 Hawthorn Bancshares, Inc., Annual General Meeting, Jun 03, 2025. Location: at hawthorn bank, located at 132 east high street, missouri, 65101, jefferson city, United States Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: US$2.61 (vs US$0.14 in FY 2023) Full year 2024 results: EPS: US$2.61 (up from US$0.14 in FY 2023). Revenue: US$71.9m (up 36% from FY 2023). Net income: US$18.3m (up US$17.3m from FY 2023). Profit margin: 25% (up from 1.8% in FY 2023). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.41% (up from 3.29% in FY 2023). Cost-to-income ratio: 67.9% (down from 78.5% in FY 2023). Non-performing loans: 0.19% (down from 0.42% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$26.10, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 11x in the Banks industry in the US. Total returns to shareholders of 20% over the past three years. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.19 per share Eligible shareholders must have bought the stock before 14 March 2025. Payment date: 01 April 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (4.6%). In line with average of industry peers (2.7%). Declared Dividend • Jan 24
Fourth quarter dividend of US$0.19 announced Shareholders will receive a dividend of US$0.19. Ex-date: 14th March 2025 Payment date: 1st April 2025 Dividend yield will be 2.4%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 3.5% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 23
Full year 2024 earnings released: EPS: US$2.61 (vs US$0.14 in FY 2023) Full year 2024 results: EPS: US$2.61 (up from US$0.14 in FY 2023). Revenue: US$71.9m (up 36% from FY 2023). Net income: US$18.3m (up US$17.3m from FY 2023). Profit margin: 25% (up from 1.8% in FY 2023). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.41% (up from 3.29% in FY 2023). Cost-to-income ratio: 67.9% (down from 78.5% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • Dec 08
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$96k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 12% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (11% net profit margin). Significant insider selling over the past 3 months (US$96k sold). Recent Insider Transactions • Dec 08
Independent Director recently sold US$96k worth of stock On the 4th of December, Frank Burkhead sold around 3k shares on-market at roughly US$31.87 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$1.2m more than they sold in the last 12 months. Upcoming Dividend • Dec 06
Upcoming dividend of US$0.19 per share Eligible shareholders must have bought the stock before 13 December 2024. Payment date: 01 January 2025. Payout ratio is on the higher end at 80%, however this is supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of American dividend payers (4.2%). In line with average of industry peers (2.5%). Valuation Update With 7 Day Price Move • Nov 20
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to US$33.67, the stock trades at a trailing P/E ratio of 37.8x. Average trailing P/E is 13x in the Banks industry in the US. Total returns to shareholders of 63% over the past three years. Declared Dividend • Nov 04
Second quarter dividend of US$0.19 announced Shareholders will receive a dividend of US$0.19. Ex-date: 13th December 2024 Payment date: 15th January 2025 Dividend yield will be 2.6%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 27% to bring the payout ratio under control. However, EPS has declined by 20% over the last 5 years so the company would need to reverse this trend. Announcement • Nov 02
Hawthorn Bancshares, Inc. Announces Net Loan Charge-Offs for the Third Quarter Ended September 30, 2024 Hawthorn Bancshares, Inc. announced net loan charge-offs for the third quarter ended September 30, 2024. In the third quarter 2024, the Company had net loan charge-offs of $0.6 million, or 0.04% of average loans, compared to net loan charge-offs of $2.0 million, or 0.13% of average loans, and $0.1 million, or 0.00% of average loans, in the prior quarter and prior year quarter, respectively. Reported Earnings • Nov 01
Third quarter 2024 earnings released: EPS: US$0.66 (vs US$0.37 in 3Q 2023) Third quarter 2024 results: EPS: US$0.66 (up from US$0.37 in 3Q 2023). Revenue: US$17.6m (up 13% from 3Q 2023). Net income: US$4.57m (up 77% from 3Q 2023). Profit margin: 26% (up from 17% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Oct 31
Hawthorn Bancshares, Inc. Approves Quarterly Dividend, Payable on January 1, 2025 Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.19 per common share, payable January 1, 2025 to shareholders of record at the close of business on December 15, 2024. Upcoming Dividend • Sep 06
Upcoming dividend of US$0.19 per share Eligible shareholders must have bought the stock before 13 September 2024. Payment date: 01 October 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (2.8%). Announcement • Sep 04
Hawthorn Bancshares, Inc. and Hawthorn Bank Announce Appointment of Bob Regnier as Board of Director Hawthorn Bancshares, Inc. announced Bob Regnier will join the board of directors of each of Hawthorn Bank and Hawthorn Bancshares, Inc. as an advisory member. In addition to his contributions on the boards, Regnier will have an active role in providing strategic advice and extending Hawthorn Bank’s reach, influence, and relationship-driven community banking model within the Kansas City metro. His experience and expertise will be instrumental in advocating for the bank, expanding partnerships and networks, and providing guidance to the leadership team. The two are joining forces after a long association Giles and Regnier have maintained, built on mutual respect as industry peers. The growth and success of BankLiberty in the Kansas City Northland during Giles’ nearly two decades of leadership closely mirrored the growth and success of Bank of Blue Valley in Johnson County under Regnier’s decades of leadership. Both reached agreements to sell the respective banks in 2019. Declared Dividend • Aug 02
Second quarter dividend of US$0.19 announced Shareholders will receive a dividend of US$0.19. Ex-date: 13th September 2024 Payment date: 1st October 2024 Dividend yield will be 3.5%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 30% to bring the payout ratio under control. However, EPS has declined by 20% over the last 5 years so the company would need to reverse this trend. Announcement • Jul 31
Hawthorn Bancshares, Inc. Approves Quarterly Cash Dividend, Payable on October 1, 2024 Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.19 per common share, payable October 1, 2024 to shareholders of record at the close of business on September 15, 2024. Upcoming Dividend • Jun 07
Upcoming dividend of US$0.19 per share Eligible shareholders must have bought the stock before 14 June 2024. Payment date: 01 July 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.9%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.0%). Recent Insider Transactions • May 02
Independent Director recently bought US$209k worth of stock On the 30th of April, Jonathan Holtaway bought around 11k shares on-market at roughly US$18.98 per share. This transaction amounted to 71% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$1.0m more in shares than they have sold in the last 12 months. Declared Dividend • Apr 27
First quarter dividend increased to US$0.19 Dividend of US$0.19 is 12% higher than last year. Ex-date: 14th June 2024 Payment date: 1st July 2024 Dividend yield will be 3.7%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 85% to bring the payout ratio under control. However, EPS has declined by 30% over the last 5 years so the company would need to reverse this trend. Announcement • Apr 25
Hawthorn Bancshares, Inc. Approves Quarterly Cash Dividend, Payable on July 1, 2024 Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.19 per common share, payable July 1, 2024 to shareholders of record at the close of business on June 15, 2024, which represents an increase of $0.02 per common share from the prior quarter's dividend. Announcement • Apr 21
Hawthorn Bancshares, Inc., Annual General Meeting, Jun 04, 2024 Hawthorn Bancshares, Inc., Annual General Meeting, Jun 04, 2024, at 09:00 Central Standard Time. Location: 3600 Amazonas Drive, Jefferson City Missouri United States Agenda: To elect four Class II directors to hold office for a term expiring at 2027 annual meeting of shareholders and until such director's successor is duly elected and qualified or until such director's earlier resignation or removal; to consider and act upon ratification and approval of the selection of FORVIS, LLP as independent registered public accounting firm for the current year; to consider and act upon advisory approval of the compensation of executives disclosed in the accompanying proxy statement pursuant to the compensation disclosure rules of the Securities and Exchange Commission; and to consider and act upon any other matters that properly may come before the meeting. Recent Insider Transactions • Mar 12
Independent Director recently bought US$200k worth of stock On the 8th of March, Jonathan Holtaway bought around 10k shares on-market at roughly US$19.99 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$542k more in shares than they have sold in the last 12 months. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 14 March 2024. Payment date: 01 April 2024. Trailing yield: 3.4%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.0%). Recent Insider Transactions • Feb 19
Independent Non-Executive Director recently bought US$156k worth of stock On the 16th of February, Douglas Eden bought around 7k shares on-market at roughly US$22.32 per share. This transaction amounted to 9.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$349k more in shares than they have sold in the last 12 months. Declared Dividend • Feb 02
Fourth quarter dividend of US$0.17 announced Dividend of US$0.17 is the same as last year. Ex-date: 14th March 2024 Payment date: 1st April 2024 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 429% to bring the payout ratio under control. However, EPS has declined by 38% over the last 5 years so the company would need to reverse this trend. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to US$24.80, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 9x in the Banks industry in the US. Total returns to shareholders of 34% over the past three years. Upcoming Dividend • Dec 07
Upcoming dividend of US$0.17 per share at 3.2% yield Eligible shareholders must have bought the stock before 14 December 2023. Payment date: 01 January 2024. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.8%). In line with average of industry peers (3.5%). Board Change • Nov 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Douglas Eden was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 28
Hawthorn Bancshares, Inc. Appoints Douglas T. Eden as Independent, Non-Executive Director Hawthorn Bancshares, Inc. announced that Douglas T. Eden has been appointed independent, non-executive director to both Hawthorn Bancshares and Hawthorn Bank’s board of directors effective October 25, 2023. Mr. Eden is currently the Principal and Investment Advisor Representative of Eden Capital Management, LLC based in Lakewood Ranch, Florida. Mr. Eden earned his Bachelor’s Degree in Economics from The Wharton School of the University of Pennsylvania in 1992 and worked in the Property & Casualty Insurance Industry for 24 years serving as Senior Vice President with CNA Financial in Chicago, Illinois, Senior Vice President with The Main Street America Group in Jacksonville, Florida and Executive Vice President with Selective Insurance Company in Branchville, New Jersey. Mr. Eden is an active investor, privately managing assets for more than 25 years and from 2012-2014 he served on the Investment Committee of the Main Street America Group with oversight of the Property & Casualty insurer’s $2 Billion investment portfolio. Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: US$0.36 (vs US$0.70 in 3Q 2022) Third quarter 2023 results: EPS: US$0.36 (down from US$0.70 in 3Q 2022). Revenue: US$15.6m (down 14% from 3Q 2022). Net income: US$2.58m (down 48% from 3Q 2022). Profit margin: 17% (down from 27% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 2% per year. Announcement • Oct 26
Hawthorn Bancshares, Inc. Approves Quarterly Cash Dividend, Payable on January 1, 2024 Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.17 per common share, payable on January 1, 2024 to shareholders of record at the close of business on December 15, 2023. Upcoming Dividend • Sep 07
Upcoming dividend of US$0.17 per share at 4.0% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 01 October 2023. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.9%). In line with average of industry peers (3.7%). Reported Earnings • Jul 28
Second quarter 2023 earnings released: EPS: US$0.36 (vs US$0.64 in 2Q 2022) Second quarter 2023 results: EPS: US$0.36 (down from US$0.64 in 2Q 2022). Revenue: US$15.8m (down 7.0% from 2Q 2022). Net income: US$2.55m (down 43% from 2Q 2022). Profit margin: 16% (down from 26% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 6% per year. Announcement • Jul 27
Hawthorn Bancshares, Inc. Declares Quarterly Cash Dividend, Payable October 1, 2023 Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.17 per common share, payable October 1, 2023 to shareholders of record at the close of business on September 15, 2023. Upcoming Dividend • Jun 07
Upcoming dividend of US$0.17 per share at 3.7% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 01 July 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of American dividend payers (5.1%). In line with average of industry peers (3.7%). Valuation Update With 7 Day Price Move • May 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$18.50, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 7x in the Banks industry in the US. Total returns to shareholders of 32% over the past three years. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: US$3.06 (vs US$3.27 in FY 2021) Full year 2022 results: EPS: US$3.06 (down from US$3.27 in FY 2021). Revenue: US$73.6m (down 4.6% from FY 2021). Net income: US$20.8m (down 7.8% from FY 2021). Profit margin: 28% (down from 29% in FY 2021). The decrease in margin was driven by lower revenue. Net interest margin (NIM): 3.53% (down from 3.62% in FY 2021). Cost-to-income ratio: 66.7% (up from 65.0% in FY 2021). Non-performing loans: 1.23% (down from 1.96% in FY 2021). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.17 per share at 2.7% yield Eligible shareholders must have bought the stock before 14 March 2023. Payment date: 01 April 2023. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (3.0%). Recent Insider Transactions • Mar 03
Insider recently bought US$50k worth of stock On the 27th of February, Jonathan Holtaway bought around 2k shares on-market at roughly US$25.42 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$77k more in shares than they have sold in the last 12 months. Reported Earnings • Feb 01
Full year 2022 earnings released: EPS: US$3.06 (vs US$3.27 in FY 2021) Full year 2022 results: EPS: US$3.06 (down from US$3.27 in FY 2021). Revenue: US$73.6m (down 4.1% from FY 2021). Net income: US$20.8m (down 7.8% from FY 2021). Profit margin: 28% (down from 29% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 07
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 14 December 2022. Payment date: 01 January 2023. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (3.1%). Board Change • Oct 31
High number of new directors Independent Non-Executive Director Shawna Hettinger was the last director to join the board, commencing their role in 2022. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: US$0.73 (vs US$0.84 in 3Q 2021) Third quarter 2022 results: EPS: US$0.73 (down from US$0.84 in 3Q 2021). Revenue: US$18.3m (down 3.3% from 3Q 2021). Net income: US$4.93m (down 15% from 3Q 2021). Profit margin: 27% (down from 31% in 3Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Oct 06
Hawthorn Bancshares, Inc. Appoints Shawna Hettinger and John States as Independent Non-Executive Directors to Both Hawthorn Bancshares and Hawthorn Bank's Board of Directors, Effective September 28, 2022 Hawthorn Bancshares, Inc. appointed Shawna Hettinger and John States as independent non-executive directors to both Hawthorn Bancshares and Hawthorn Bank's board of directors, effective September 28, 2022. Hettinger is currently president and majority owner of Streetwise, Inc., a pavement marking and traffic control company based in Grandview, Missouri with a location in Springfield, Missouri.States, who has over 30 years of experience in the commercial construction industry, is a member/owner of Little Dixie Construction, a Columbia, Missouri based general contracting firm.