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Hawthorn Bancshares (HWBK) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Hawthorn Bancshares disclosed 38 risk factors in its most recent earnings report. Hawthorn Bancshares reported the most risks in the “Finance & Corporate” category.

Risk Overview Q2, 2026

Source: the company's latest filing for the period ended Jun 30, 2026, filed Aug 06, 2026

Risk Distribution
38Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Hawthorn Bancshares disclosed risks per quarterNo. of Risks28303234363840Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025Q2Q4Q12026Q2Showing: Q4, 2025
Risks removedRisks addedRisks changedHawthorn Bancshares Risk Factors
Risk Removed (4)New Risk (5)
  • Share Price & Shareholder Rights - Risk 1
    The Price price of Our Common Stock Could Fluctuate Significantly, Which Could Make our common stock could fluctuate significantly, and this could make it Difficult difficult for You you to Resell Shares resell shares of Our Common Stock our common stock at Times times or at Prices You Find Attractive prices you find attractive.

    The stock market and, in particular, the market for financial institution stocks, has experienced significant volatility during the recent changes in economic and industry conditions. In some cases, the markets have produced downward pressure on stock prices for certain issuers without regard to those issuers' underlying financial strength. As a result, the trading volume in our common stock could fluctuate more than usual and cause significant price variations to occur. This could make it difficult for you to resell shares of our common stock at times or at prices you find attractive. The trading price of the shares of our common stock will depend on many factors that could change from time to time and could be beyond our control. Among the factors that could affect our stock price are those identified under the heading "Forward-Looking Statements" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of this report and as follows: - actual or anticipated quarterly fluctuations in our operating results and financial condition;- changes in financial estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our common stock or those of other financial institutions;- failure to meet analysts' revenue or earnings estimates;- speculation in the press or investment community generally or relating to our reputation, our market area, our competitors or the financial services industry in general;- strategic actions by us or our competitors, such as acquisitions, restructurings, dispositions or financings;- actions by our current stockholders, including sales of common stock by existing stockholders and/or directors and executive officers;- fluctuations in the stock price and operating results of our competitors;- future sales of our equity, equity-related or debt securities;- changes in the frequency or amount of dividends or share repurchases;- proposed or adopted regulatory changes or developments;- investigations, proceedings or litigation that involve or affect us;- trading activities in our common stock, including short-selling;- domestic and local economic factors unrelated to our performance; and - general market conditions and, in particular, developments related to market conditions for the financial services industry. A significant decline in our stock price could result in substantial losses for individual stockholders and could lead to costly and disruptive securities litigation.

  • Debt & Financing - Risk 2
    We May Elect may elect or Be Compelled To Seek Additional Capital In The Future, But That Capital May Not Be Available When Needed. be compelled to seek additional capital in the future, but that capital may not be available when it is needed.

    We are required by regulatory authorities to maintain adequate levels of capital to support operations. In addition, we may elect to raise additional capital to support the growth of the Company's business or to finance acquisitions, if any, or we may elect to raise additional capital for other reasons. Should we elect or be required by regulatory authorities to raise additional capital, we may seek to do so through the issuance of, among other things, common stock or securities convertible into common stock, which could dilute your ownership interest in the Company. Although we remain "well-capitalized", the future cost and availability of capital may be adversely affected by illiquid credit markets, economic conditions and a number of other factors, many of which are outside of the Company's control. Accordingly, we cannot assure you of the ability to raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed or on terms acceptable to us, it may have a material adverse effect on the Company's financial condition and results of operations.

Read and Evaluate the RiskReserved for Ultimate MembersUpgrade
Tech & Innovation (2)
Legal & Regulatory (2)
Macro & Political (1)

Risk Highlights Q2, 2026

Main Risk Category
Finance & Corporate
With 14 Risks
Number of Disclosed Risks
38
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Jun 2026
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

if we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud, and, as a result, investors and depositors could lose confidence in our financial reporting, which could adversely affect our business, the trading price of our stock, and our ability to attract additional deposits.trading price of our stockthe bank is a community bank and our ability to maintain the bank's reputation is critical to the success of our business and the failure to do so could materially adversely affect our performance.materially adversely affect our performancewe may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.compelled to seek additional capitalwe may experience difficulties in managing growth and in effectively integrating newly acquired companies.effectively integrating newly acquired companiesnon-compliance with the usa patriot act, bank secrecy act, real estate settlement procedures act, truth-in-lending act, community reinvestment act, fair lending laws or other laws and regulations could result in fines or sanctions and curtail expansion opportunities.real estate settlement procedures actthe fdic's changes in the calculation of deposit insurance premiums and ability to levy special assessments could increase the company's non-interest expense and may reduce its profitability.calculation of deposit insurance premiumsif we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud, and, as a result, investors and depositors could lose confidence in our financial reporting, which could adversely affect our business, the trading price of our stock, and our ability to attract additional deposits.effective system of internal controlthe fdic's changes in the calculation of deposit insurance premiums and ability to levy special assessments could increase the company's non-interest expense and may reduce its profitability.ability to levy special assessmentsour wealth management fees may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease our revenues and net earnings.result of poor investment performancethe price of our common stock could fluctuate significantly, and this could make it difficult for you to resell shares of our common stock at times or at prices you find attractive.price of our common stock

Risk Factors Full Breakdown - Total Risks 38

Share Price & Shareholder Rights3 | 7.9%
  • Share Price & Shareholder Rights - Risk 1
    The price of our common stock could fluctuate significantly, and this could make it difficult for you to resell shares of our common stock at times or at prices you find attractive.

    The stock market and, in particular, the market for financial institution stocks, has experienced significant volatility during the recent changes in economic and industry conditions. In some cases, the markets have produced downward pressure on stock prices for certain issuers without regard to those issuers' underlying financial strength. As a result, the trading volume in our common stock could fluctuate more than usual and cause significant price variations to occur. This could make it difficult for you to resell shares of our common stock at times or at prices you find attractive. The trading price of the shares of our common stock will depend on many factors that could change from time to time and could be beyond our control. Among the factors that could affect our stock price are those identified under the heading "Forward-Looking Statements" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of this report and as follows: - actual or anticipated quarterly fluctuations in our operating results and financial condition;- changes in financial estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our common stock or those of other financial institutions;- failure to meet analysts' revenue or earnings estimates;- speculation in the press or investment community generally or relating to our reputation, our market area, our competitors or the financial services industry in general;- strategic actions by us or our competitors, such as acquisitions, restructurings, dispositions or financings;- actions by our current stockholders, including sales of common stock by existing stockholders and/or directors and executive officers;- fluctuations in the stock price and operating results of our competitors;- future sales of our equity, equity-related or debt securities;- changes in the frequency or amount of dividends or share repurchases;- proposed or adopted regulatory changes or developments;- investigations, proceedings or litigation that involve or affect us;- trading activities in our common stock, including short-selling;- domestic and local economic factors unrelated to our performance; and - general market conditions and, in particular, developments related to market conditions for the financial services industry. A significant decline in our stock price could result in substantial losses for individual stockholders and could lead to costly and disruptive securities litigation.

  • Share Price & Shareholder Rights - Risk 2
    The trading volume in our common stock has been low, and the sale of a substantial number of shares of our common stock in the public market could depress the price of our common stock and make it difficult for you to sell your shares.

    Our common stock is listed to trade on The Nasdaq Global Select Market but is thinly traded. As a result, you may not be able to sell your shares of common stock on short notice. Additionally, thinly traded stock can be more volatile than stock trading in an active public market. The sale of a substantial number of shares of our common stock at one time could temporarily depress the market price of our common stock, making it difficult for you to sell your shares and impairing our ability to raise capital.

  • Share Price & Shareholder Rights - Risk 3
    Our common stock is not insured by any governmental entity.

    Our common stock is not a deposit account or other obligation of any bank and is not insured by the FDIC or any other governmental entity.

Accounting & Financial Operations1 | 2.6%
Debt & Financing9 | 23.7%
Corporate Activity and Growth1 | 2.6%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.