Hawthorn Bancshares (HWBK) risk factors, FY2024 10-K

Risks Relating to Our Business and Market

1. 01Because We Primarily Serve Central, West Central Missouri, and Eastern Kansas, a Decline in the Local Economic Conditions Could Lower the Company's Profitability
2. 02Interest Rate Changes May Reduce the Profitability of the Company and the Bank
3. 03Our Business Depends On Our Ability to Successfully Manage Credit Risk
4. 04The Company's Profitability Depends On the Bank's Asset Quality and Lending Risks
5. 05The Provision for Probable Credit Losses May Need to Be Increased
6. 06Adverse Market Conditions in the U.S. Economy and the Markets in Which We Operate Could Adversely Impact the Company's Business
7. 07Smaller Commercial Borrowers May Have Fewer Financial Resources, Which May Impair Their Ability to Repay Loans
8. 08The Soundness of Other Financial Institutions Could Adversely Affect Us
9. 09Liquidity Risk Could Impair Our Ability to Fund Operations and Meet Our Obligations as They Become Due, and Failure to Maintain Sufficient Liquidity Could Materially Adversely Affect Our Growth, Business, Profitability and Financial Condition
10. 10Deterioration in the Housing Market Could Cause Further Increases in Delinquencies and Non-Performing Assets, Including Loan Charge-Offs, and Depress the Company's Income and Growth
11. 11The 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
12. 12We May Elect or Be Compelled To Seek Additional Capital In The Future, But That Capital May Not Be Available When Needed
13. 13If We Are Unable to Successfully Compete for Customers in the Company's Market Area, the Company's Financial Condition and Results of Operations Could Be Adversely Affected
14. 14We May Experience Difficulties in Managing Growth and in Effectively Integrating Newly Acquired Companies
15. 15The Actual or Perceived Occurrence of Fraudulent Activity, Breaches or Failures of our Information Security Controls, or Cybersecurity Related Incidents Could Damage Our Reputation, Disrupt Our Business, Increase our Costs and Cause Losses
16. 16The Company's Success Largely Depends on the Efforts of its Executive Officers
17. 17Severe Weather, Natural Disasters, Pandemics, and Other External Events Could Significantly Impact Our Business
18. 18Climate Change and Responses to Climate Change May Adversely Impact Our Business, Financial Condition and Results of Operations
19. 19Public Health Threats or Outbreaks of Communicable Diseases May Adversely Affect the Company's Operations and Financial Results

Risks Relating to Our Regulatory Environment

1. 20We May Be Adversely Affected by Changes in Laws and Regulations Affecting the Financial Services Industry
2. 21The Federal Reserve May Require the Company to Commit Capital Resources to Support the Bank
3. 22The Short-Term and Long-Term Impact of any Change to Regulatory Capital Requirementsis Uncertain
4. 23Higher FDIC Deposit Insurance Premiums and Assessments Could Adversely Affect our Financial Condition
5. 24Non-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
6. 25Regulations Relating to Privacy, Cybersecurity, Information Security and Data Protection Could Increase Our Costs, Affect or Limit How We Collect and Use Personal Information and Adversely Affect Our Business Opportunities
7. 26We are Subject to Numerous Laws Designed to Protect Consumers, Including the Community Reinvestment Act and Fair Lending Laws, and Failure to Comply with These Laws Could Lead to a Wide Variety of Sanctions
8. 27We Are Subject to a Number of Other Laws and Regulations, Which May Adversely Affect the Operation of Our Business and Increase Our Costs

Technology and Vendor Risks

1. 28We Are Subject to Security and Operational Risks Relating to Our Use of Technology That Could Damage Our Reputation and Our Business
2. 29The Operation of Our Business, Including Customer Interaction, is Increasingly Done Via Electronic Means, and This Has Increased Our Risks Related to Cybersecurity
3. 30We Continually Encounter Technological Change, and We Cannot Predict How Changes in Technology May Affect Our Business
4. 31We Rely On Others to Provide Key Components of Our Business Infrastructure

Risks Related to Our Common Stock

1. 32The Price of Our Common Stock Could Fluctuate Significantly, Which Could Make it Difficult for You to Resell Shares of Our Common Stock at Times or at Prices You Find Attractive
2. 33The 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
3. 34Our Common Stock is Not Insured by Any Governmental Entity