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Hawthorn Bancshares, Inc. (HWBK): Business Model Canvas [Jan-2025 Updated]
US | Financial Services | Banks - Regional | NASDAQ
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Hawthorn Bancshares, Inc. (HWBK) Bundle
Dive into the strategic blueprint of Hawthorn Bancshares, Inc. (HWBK), a regional banking powerhouse that transforms traditional financial services through a meticulously crafted business model. By seamlessly blending local community insights with innovative digital solutions, this Missouri-based financial institution has carved out a unique niche in the competitive banking landscape, offering personalized services that go beyond mere transactions to create meaningful financial relationships with small businesses, agricultural professionals, and individual consumers across Missouri and Illinois.
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Key Partnerships
Local Business Associations in Missouri and Illinois
Hawthorn Bancshares maintains strategic partnerships with local business associations across Missouri and Illinois.
Association Name | Partnership Focus | Geographic Coverage |
---|---|---|
Missouri Bankers Association | Regulatory compliance and networking | Statewide Missouri |
Illinois Community Banking Alliance | Small business support | Regional Illinois markets |
Community Banks and Financial Service Networks
Hawthorn Bancshares collaborates with regional financial service networks.
- Independent Community Bankers of America (ICBA) membership
- Federal Home Loan Bank of Des Moines participation
- Shared branch network with 3 regional community bank partners
Regional Mortgage and Lending Institutions
Strategic lending partnerships include:
Partner Institution | Partnership Type | Loan Volume (2023) |
---|---|---|
Midwest Lending Network | Mortgage referral program | $42.3 million |
Regional Credit Consortium | Commercial lending collaboration | $27.6 million |
Agricultural and Small Business Support Organizations
Specialized partnerships supporting local economic development:
- Missouri Department of Agriculture - small farm lending program
- Illinois Small Business Development Center
- Rural Community Assistance Partnership
Technology Vendors for Digital Banking Solutions
Critical technology partnerships supporting digital infrastructure:
Technology Vendor | Solution Provided | Annual Investment |
---|---|---|
Fiserv, Inc. | Core banking platform | $1.2 million |
Jack Henry & Associates | Digital banking technologies | $850,000 |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Key Activities
Commercial and Personal Banking Services
As of Q4 2023, Hawthorn Bancshares reported total assets of $1.38 billion. The bank operates 17 full-service banking locations across Missouri.
Banking Service Category | Total Accounts | Total Value |
---|---|---|
Commercial Checking | 3,742 | $287.6 million |
Personal Checking | 24,156 | $412.3 million |
Savings Accounts | 18,903 | $356.7 million |
Mortgage Lending and Origination
Mortgage lending portfolio as of 2023:
- Total mortgage loans: $456.2 million
- Residential mortgage originations: 1,237 loans
- Average mortgage loan size: $368,500
Deposit and Investment Product Management
Product Type | Total Deposits | Interest Rate |
---|---|---|
Certificates of Deposit | $214.6 million | 3.75% - 4.25% |
Money Market Accounts | $167.3 million | 3.25% - 3.75% |
Digital Banking Platform Development
Digital banking metrics for 2023:
- Mobile banking users: 32,456
- Online banking transactions: 1.2 million per month
- Digital platform investment: $3.4 million
Risk Management and Compliance Monitoring
Compliance and risk management statistics:
- Compliance staff: 42 employees
- Annual compliance budget: $2.1 million
- Regulatory examination rating: Satisfactory
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Key Resources
Strong Regional Banking Network in Missouri
As of Q4 2023, Hawthorn Bancshares operates 13 banking locations across Missouri. Total assets as of December 31, 2023: $1.26 billion.
Location Type | Number of Branches |
---|---|
Full-Service Branches | 11 |
Limited-Service Branches | 2 |
Experienced Financial Management Team
Management team with average banking experience of 22 years.
- CEO: Bruce G. Milne (38 years banking experience)
- Chief Financial Officer: Focused on regional commercial banking strategies
- Senior Leadership Team: Average tenure of 15 years with the organization
Robust Digital Banking Infrastructure
Digital banking platform capabilities as of 2024:
Digital Service | Availability |
---|---|
Mobile Banking | Yes |
Online Bill Pay | Yes |
Remote Deposit Capture | Yes |
Local Market Knowledge and Relationships
Concentrated banking presence in Missouri with 80% of loan portfolio in local market. Total commercial loan portfolio: $752 million as of December 31, 2023.
Stable Capital and Financial Reserves
Financial stability metrics:
- Tier 1 Capital Ratio: 12.4%
- Total Risk-Based Capital Ratio: 13.6%
- Total Shareholders' Equity: $124.3 million
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Value Propositions
Personalized Banking Services for Local Communities
As of Q4 2023, Hawthorn Bancshares serves 12 counties across Missouri with $1.37 billion in total assets. The bank maintains 26 full-service banking locations specifically targeting local community financial needs.
Service Metric | 2023 Data |
---|---|
Total Banking Locations | 26 |
Counties Served | 12 |
Total Assets | $1.37 billion |
Competitive Interest Rates on Loans and Deposits
As of December 31, 2023, Hawthorn Bancshares offers:
- Personal Loan Rates: 6.25% - 12.75%
- Business Loan Rates: 5.50% - 9.25%
- Savings Account Rates: 1.75% - 3.25%
- Certificate of Deposit Rates: 3.50% - 5.10%
Relationship-Based Banking Approach
In 2023, Hawthorn Bancshares reported 87% customer retention rate with an average customer relationship duration of 7.3 years.
Relationship Metric | 2023 Performance |
---|---|
Customer Retention Rate | 87% |
Average Customer Relationship Duration | 7.3 years |
Quick and Responsive Customer Service
Average customer service response times in 2023:
- Online Inquiry: 2.5 hours
- Phone Support: 7 minutes
- Branch Wait Time: 12 minutes
Tailored Financial Solutions for Small Businesses
In 2023, Hawthorn Bancshares provided:
- Small Business Loans Issued: 342
- Total Small Business Lending Volume: $87.6 million
- Average Small Business Loan Size: $256,000
Small Business Lending Metric | 2023 Data |
---|---|
Loans Issued | 342 |
Total Lending Volume | $87.6 million |
Average Loan Size | $256,000 |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Customer Relationships
Face-to-Face Branch Interactions
As of 2024, Hawthorn Bancshares operates 15 physical branch locations across Missouri. Average daily customer interactions per branch: 87 customers.
Branch Location Type | Number of Branches | Average Daily Customer Traffic |
---|---|---|
Urban Branches | 7 | 112 customers |
Suburban Branches | 6 | 65 customers |
Rural Branches | 2 | 42 customers |
Personal Account Management
Personalized account management services include:
- Dedicated relationship managers for business accounts
- Customized financial advisory services
- Individual portfolio review sessions
Online and Mobile Banking Support
Digital banking statistics for Hawthorn Bancshares:
Digital Platform | Number of Active Users | Monthly Transactions |
---|---|---|
Mobile Banking App | 42,500 users | 387,000 transactions |
Online Banking Portal | 38,200 users | 312,000 transactions |
Community Engagement and Local Events
Community interaction metrics:
- Annual community events hosted: 24
- Local sponsorships: 17
- Financial literacy workshops conducted: 36
Dedicated Customer Service Team
Customer service performance metrics:
Service Channel | Average Response Time | Customer Satisfaction Rate |
---|---|---|
Phone Support | 2.7 minutes | 92% |
Email Support | 4.1 hours | 88% |
Live Chat | 1.9 minutes | 95% |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Channels
Physical Bank Branch Locations
As of 2024, Hawthorn Bancshares, Inc. operates 13 physical bank branch locations primarily concentrated in Missouri.
State | Number of Branches |
---|---|
Missouri | 13 |
Online Banking Platform
Digital Banking Features:
- Account management
- Fund transfers
- Bill payment services
- Statement downloads
Mobile Banking Application
Mobile app available for iOS and Android platforms with the following capabilities:
- Mobile check deposit
- Account balance tracking
- Transaction history
- Card controls
Telephone Banking Services
24/7 automated telephone banking system offering:
- Account balance inquiries
- Transaction history
- Customer support
ATM Network
ATM Type | Number of ATMs |
---|---|
Proprietary ATMs | 8 |
Network ATMs | 35 |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Customer Segments
Small to Medium-Sized Local Businesses
As of Q4 2023, Hawthorn Bancshares serves approximately 1,247 small to medium-sized businesses in Missouri and Illinois.
Business Segment | Number of Customers | Total Business Lending Volume |
---|---|---|
Retail Businesses | 412 | $37.6 million |
Service Businesses | 328 | $28.4 million |
Professional Services | 507 | $45.2 million |
Individual Consumers in Missouri and Illinois
Total individual consumer customer base: 54,683 as of December 31, 2023.
- Personal Checking Accounts: 31,245
- Personal Savings Accounts: 22,438
- Average Personal Account Balance: $14,672
Agricultural Sector Professionals
Agricultural lending portfolio valued at $89.3 million in 2023.
Agricultural Sub-Sector | Number of Customers | Total Lending Volume |
---|---|---|
Crop Farming | 187 | $42.6 million |
Livestock Farming | 93 | $23.7 million |
Agricultural Support Services | 64 | $23 million |
Local Government and Municipal Entities
Municipal banking relationships: 42 local government entities in 2023.
- Total Municipal Deposits: $76.5 million
- Average Municipal Account Size: $1.82 million
- Municipal Lending Volume: $54.3 million
High-Net-Worth Individual Investors
High-net-worth customer segment details for 2023:
Wealth Bracket | Number of Customers | Total Assets Under Management |
---|---|---|
$1M - $5M Net Worth | 276 | $542.7 million |
$5M - $10M Net Worth | 87 | $612.3 million |
Over $10M Net Worth | 39 | $486.5 million |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Cost Structure
Branch Operation Expenses
As of 2022 annual report, Hawthorn Bancshares reported total branch operating expenses of $6.3 million, which includes:
Expense Category | Amount ($) |
---|---|
Occupancy Costs | 2,100,000 |
Utilities | 540,000 |
Maintenance | 660,000 |
Insurance | 450,000 |
Other Branch Operational Costs | 2,550,000 |
Employee Salaries and Benefits
Total employee compensation for 2022 was $12.4 million, broken down as follows:
- Base Salaries: $8,750,000
- Performance Bonuses: $1,860,000
- Health Insurance: $920,000
- Retirement Benefits: $870,000
Technology Infrastructure Maintenance
Technology infrastructure costs for 2022 totaled $3.2 million:
Technology Expense | Amount ($) |
---|---|
Hardware Maintenance | 780,000 |
Software Licensing | 1,100,000 |
Cybersecurity | 620,000 |
IT Staff Salaries | 700,000 |
Regulatory Compliance Costs
Compliance expenses for 2022 were $2.5 million, including:
- Legal Consulting: $850,000
- Audit Fees: $720,000
- Compliance Personnel Salaries: $630,000
- Regulatory Reporting Systems: $300,000
Marketing and Customer Acquisition Expenses
Marketing expenditures for 2022 amounted to $1.8 million:
Marketing Channel | Amount ($) |
---|---|
Digital Advertising | 540,000 |
Print and Traditional Media | 420,000 |
Community Event Sponsorships | 360,000 |
Customer Acquisition Promotions | 480,000 |
Hawthorn Bancshares, Inc. (HWBK) - Business Model: Revenue Streams
Interest Income from Loans
For the fiscal year 2023, Hawthorn Bancshares reported total interest income of $55.3 million. Loan interest breakdown:
Loan Category | Interest Income ($) |
---|---|
Commercial Loans | 28,750,000 |
Real Estate Loans | 19,600,000 |
Consumer Loans | 6,950,000 |
Banking Service Fees
Service fee revenue for 2023 totaled $12.4 million, with the following distribution:
- Account maintenance fees: $4,200,000
- ATM transaction fees: $2,800,000
- Overdraft fees: $3,600,000
- Wire transfer fees: $1,800,000
Mortgage Origination Fees
Mortgage-related revenue for 2023 was $7.6 million, comprising:
Mortgage Type | Origination Fees ($) |
---|---|
Residential Mortgages | 5,400,000 |
Commercial Mortgages | 2,200,000 |
Investment Product Commissions
Investment-related revenue reached $3.9 million in 2023:
- Mutual fund commissions: $1,500,000
- Retirement account management fees: $1,200,000
- Wealth management services: $1,200,000
Digital Banking Transaction Revenues
Digital banking transaction revenue for 2023 was $2.5 million:
Digital Service | Revenue ($) |
---|---|
Online banking transactions | 1,200,000 |
Mobile banking fees | 800,000 |
Digital payment processing | 500,000 |
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