Is Hawthorn Bancshares, Inc. HWBK stock halal to invest in?

No, as of August 2026, Hawthorn Bancshares, Inc. stock (HWBK) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Hawthorn Bancshares, Inc. currently does not meet the threshold for the non-permissible income and interest-bearing debt screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Hawthorn Bancshares, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Hawthorn Bancshares, Inc. HWBK reviewed for Shariah compliance?

Tabadulat reviews Hawthorn Bancshares, Inc. HWBK for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Hawthorn Bancshares, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Hawthorn Bancshares, Inc. stock (HWBK) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Hawthorn Bancshares, Inc.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Hawthorn Bancshares, Inc. stock (HWBK) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Hawthorn Bancshares, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Hawthorn Bancshares, Inc. stock (HWBK) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. Hawthorn Bancshares, Inc.'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Hawthorn Bancshares, Inc. HWBK stock?

Hawthorn Bancshares, Inc. (HWBK) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Hawthorn Bancshares, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Hawthorn Bancshares, Inc. stock (HWBK) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Hawthorn Bancshares, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Hawthorn Bancshares, Inc.

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Shariah-Compliant

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HWBK

About

Hawthorn Bancshares, Inc.

HWBK

Hawthorn Bancshares Inc. is a regional financial services holding company that primarily focuses on the provision of banking services. Its flagship, Hawthorn Bank, delivers a comprehensive range of financial products and services designed to meet the diverse needs of individuals, businesses, and governmental entities in its market area. Based in Missouri, Hawthorn Bancshares plays a vital role in its local economy by providing loans for consumer, real estate, and commercial purposes, as well as offering deposit services, wealth management, and financial planning. A distinctive feature of Hawthorn Bancshares is its strong community orientation, emphasizing personalized service and community involvement. It actively supports local development through a network of branch locations throughout central and western Missouri. The bank engages with sectors such as agriculture, healthcare, manufacturing, and real estate, providing tailored solutions to these industries' unique financial requirements. In the financial market, Hawthorn Bancshares Inc. represents a significant player within the regional banking sector, offering investors a glimpse into the economic health of the specific locales it operates in, while contributing to the broader financial ecosystem through its integration of traditional banking values with modern financial innovation.

Sector:

Financial Services

Industry:

Banks - Regional

Employees:

259

Website:

https://www.hawthornbancshares.com

HWBK

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Hawthorn Bancshares, Inc.

HWBK

Frequently asked questions

Is Hawthorn Bancshares, Inc. HWBK stock halal to invest in?

How often is Hawthorn Bancshares, Inc. HWBK reviewed for Shariah compliance?

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Non Permissible Income criteria?

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Interest Bearing Investments criteria?

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Hawthorn Bancshares, Inc. HWBK stock?

Does Hawthorn Bancshares, Inc. HWBK pass the AAOIFI Preference Share screen?

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