HWBK

Stock Ratings Overview: Validea's Small-Cap Growth Investor model, based on Motley Fool's strategy, has upgraded ratings for several stocks including Hawthorn Bancshares (HWBK) from 65% to 72%, Inter & Co Inc (INTR) from 59% to 85%, and Vital Farms (VITL) from 52% to 79%, indicating improved fundamentals and valuations.

Company Descriptions: Hawthorn Bancshares is a bank holding company offering various banking services; Inter & Co Inc operates as a digital multi-service bank in Brazil; and Vital Farms focuses on ethically produced foods, particularly pasture-raised eggs, emphasizing humane treatment of farm animals.

Financial Performance: Hawthorn Bancshares, Inc. reported a net income of $6.1 million for Q2 2025, marking a 31.8% increase from the previous year, with earnings per share rising to $0.88. The bank's efficiency ratio improved to 62.32%, and it maintained strong credit quality with non-performing assets at 0.35%.

Capital Management: The company remains well-capitalized with a total risk-based capital ratio of 15.12%. Additionally, a quarterly cash dividend of $0.20 per common share was approved, payable on October 1, 2025, reflecting ongoing shareholder returns amidst strategic financial management.

Inclusion in Market Indexes: Hawthorn Bancshares, Inc. has been included in the Russell 3000 and Russell 2000 indexes, effective June 30, 2025, reflecting the company's growth and enhancing its visibility in the investment community.

Significance of Index Membership: The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them, indicating the importance of Hawthorn's inclusion for attracting potential investors.