StockNews.AI
HWBK
StockNews.AI
2 days

Hawthorn Bancshares Reports Third Quarter 2025 Results

1. HWBK net income rose 34.1% year-over-year to $6.1 million. 2. Earnings per share (EPS) increased to $0.88 from $0.66 year-over-year. 3. Loans increased by $51.1 million, marking a 3.5% quarterly growth. 4. Non-performing assets improved to 0.48%, showcasing strong credit quality. 5. Quarterly cash dividend of $0.20 approved for January 1, 2026.

16m saved
Insight
Article

FAQ

Why Bullish?

HWBK's net income and EPS growth signals strong performance, historically boosting stock prices.

How important is it?

The strong financial performance and dividend announcement will likely attract investor interest and support HWBK's stock price.

Why Short Term?

The immediate approval of cash dividends and financial results may enhance investor confidence, leading to short-term price increases.

Related Companies

WFCJPMC
JEFFERSON CITY, Mo., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported third quarter 2025 net income of $6.1 million, or earnings per diluted share (“EPS”) of $0.88. Third Quarter 2025 Results Net income improved $1.6 million, or 34.1%, to $6.1 million from the third quarter 2024 (the "prior year quarter") and the efficiency ratio improved to 62.30% compared to 66.23% for the prior year quarterEPS of $0.88, an improvement of $0.22 per share, or 33%, from the prior year quarterNet interest margin, fully taxable equivalent ("FTE") improved in the third quarter 2025 to 3.97% compared to 3.89% for second quarter 2025 (the "prior quarter”) and 3.36% for the prior year quarterProvision for credit losses was $0.4 million higher than the prior quarter and $0.1 million lower than the prior year quarterReturn on average assets and equity of 1.33% and 15.21%, respectivelyLoans increased $51.1 million, or 3.5%, and deposits increased $7.9 million, or 0.5%, compared to the prior quarterInvestments decreased $3.4 million, or 1.5%, compared to the prior quarterCredit quality remained strong with non-performing assets to total loans of 0.48% improving from 0.58% in the prior year quarterRemained well capitalized with total risk-based capital of 14.90%Book value per share was $23.76, an increase of $1.23, or 5.5%, compared to the prior quarter and $2.85, or 13.6%, compared to the prior year quarter Brent Giles, Chief Executive Officer of Hawthorn Bancshares, Inc. commented, “I am pleased with our third quarter results as they reflect continued core growth. Our margin continued to expand, and we experienced growth in our wealth management group. Additionally, we were able to grow our loan portfolio by expanding our customer relationships and attracting new customers. The third quarter results reflect our focus on our strategic objectives which continues to create shareholder value." (unaudited)$000, except per share data  September 30, June 30, September 30,  2025  2025  2024Balance sheet information     Total assets$        1,932,105 $        1,877,417 $        1,809,769Loans held for investment         1,514,002          1,462,898          1,466,751Investment securities         226,017          229,392          209,019Deposits         1,525,917          1,517,986          1,503,504Total stockholders’ equity         164,938          156,823          146,474      Market and per share data     Book value per share$23.76 $22.53 $20.91Market price per share 31.04  29.14  25.03Diluted earnings per share (QTR) 0.88  0.88  0.66 Financial Results for the Third Quarter 2025 Earnings Net income for the third quarter 2025 was $6.1 million, an increase of $0.03 million, or 0.5%, from the prior quarter, and an increase of $1.6 million, or 34.1%, from the prior year quarter. EPS was unchanged at $0.88 for the third quarter 2025 compared to the prior quarter and improved from $0.66 for the prior year quarter. Net income for the nine months ended September 30, 2025 was $17.6 million, or $2.53 per diluted share, an increase of $4.0 million compared to $13.7 million, or $1.95 per diluted share, for the nine months ended September 30, 2024. Net Interest Income and Net Interest Margin Net interest income for the third quarter 2025 was $16.9 million, an increase of $0.7 million from the prior quarter, and an increase of $2.5 million from the prior year quarter. Net interest income for the nine months ended September 30, 2025 was $48.3 million, an increase of $5.1 million compared to $43.2 million for the nine months ended September 30, 2024. Interest income increased $1.2 million in the current quarter compared to the prior year quarter, driven primarily by higher rates on earning assets, while interest expense decreased $1.4 million compared to the prior year quarter due to lower costs on deposits. Net interest margin, on an FTE basis, was 3.97% for the current quarter, compared to 3.89% for the prior quarter, and 3.36% for the prior year quarter. The yield earned on average loans held for investment increased to 6.12%, on an FTE basis, for the third quarter 2025, compared to 5.98% for the prior quarter and 5.83% for the prior year quarter. The average cost of deposits was 2.36% for the third quarter 2025, compared to 2.35% for the prior quarter and 2.74% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 27.8% as of September 30, 2025, compared to 27.7% and 26.0% at June 30, 2025 and September 30, 2024, respectively. Non-interest Income Total non-interest income for the third quarter 2025 was $3.7 million, an increase of $0.2 million, or 4.8%, from the prior quarter, and a decrease of $0.1 million, or 1.8%, from the prior year quarter. Non-interest income for the nine months ended September 30, 2025 was $10.7 million, a decrease of $0.1 million from the nine months ended September 30, 2024. Non-interest Expense Total non-interest expense for the third quarter 2025 was $12.8 million, an increase of $0.6 million, or 4.5%, from the prior quarter, and an increase of $0.8 million, or 6.9%, from the prior year quarter. For the nine months ended September 30, 2025, non-interest expense was $37.6 million, an increase of $1.0 million as compared to $36.6 million for the nine months ended September 30, 2024, which was primarily attributable to an increase in salaries and employee benefits. The third quarter 2025 efficiency ratio was 62.30% compared to 62.32% and 66.23% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior year quarter was primarily due to higher net interest margin. Loans Loans held for investment increased $51.1 million, or 3.5%, to $1.51 billion as of September 30, 2025 compared to June 30, 2025, and increased $47.3 million, or 3.2% annualized, from September 30, 2024. Investments Investments decreased $3.4 million, or 1.5%, to $226.0 million as of September 30, 2025 compared to June 30, 2025, and increased $17.0 million, or 8.1%, from September 30, 2024. Asset Quality Non-performing assets to total loans was 0.48% at September 30, 2025, compared to 0.35% and 0.58% at June 30, 2025 and September 30, 2024, respectively. Non-performing assets totaled $7.3 million at September 30, 2025, compared to $5.2 million and $8.5 million at June 30, 2025 and September 30, 2024, respectively. The increase in non-performing assets during quarter compared to the prior quarter was due to the movement of one commercial relationship to non-accrual status. In the third quarter 2025, the Company had net loan charge-offs of $0.04 million, or 0.01% annualized, of average loans, compared to net loan charge-offs of $0.05 million, or 0.01% of average loans, and $0.6 million, or 0.17% annualized, of average loans, in the prior quarter and prior year quarter, respectively. The Company provided provision for credit losses of $0.4 million for the third quarter 2025 compared to releasing provision of $0.1 million in the prior quarter, and providing provision of $0.5 million for the prior year quarter. The allowance for credit losses at September 30, 2025 was $21.9 million, or 1.45% of outstanding loans, and 446.02% of non-performing loans. At June 30, 2025, the allowance for credit losses was $21.6 million, or 1.47% of outstanding loans, and 781.24% of non-performing loans. At September 30, 2024, the allowance for credit losses was $21.9 million, or 1.50% of outstanding loans, and 539.52% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of September 30, 2025 as determined by management. Deposits Total deposits at September 30, 2025 were $1.53 billion, an increase of $7.9 million, or 0.5%, from June 30, 2025, and an increase of $22.4 million, or 1.5% annualized, from September 30, 2024. The increase in deposits at September 30, 2025 as compared to September 30, 2024 was primarily a result of increases in non-interest bearing demand deposits and other time deposits offset by decreases in savings, interest checking and money market accounts and time deposits $250,000 and over. Capital The Company maintains its “well capitalized” regulatory capital position. At September 30, 2025, capital ratios were as follows: total risk-based capital to risk-weighted assets 14.90%; tier 1 capital to risk-weighted assets 13.65%; common equity tier 1 10.71%; tier 1 leverage 11.97%; and common equity to assets 8.54%. Pursuant to the Company's Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Board Directors amended the plan on June 3, 2025 and approved increasing the authorized repurchase limit to $10 million. The Company repurchased 90,466 common shares under the repurchase plan during the first nine months of 2025 at an average cost of $27.72 per share totaling $2.5 million. As of September 30, 2025, $8.7 million remains available for share repurchases pursuant to the plan. On October 29, 2025, the Company's Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable January 1, 2026 to shareholders of record at the close of business on December 15, 2025. [Tables follow] FINANCIAL SUMMARY(unaudited)$000, except per share data  Three Months Ended September 30, June 30, September 30,Statement of income information: 2025  2025   2024 Total interest income$        25,003 $        23,911  $        23,819 Total interest expense         8,138          7,769           9,492 Net interest income         16,865          16,142           14,327 Provision for (release of) credit losses         375          (51)          500 Non-interest income         3,716          3,545           3,783 Investment securities gains (losses), net         105          (1)          8 Non-interest expense         12,821          12,269           11,994 Pre-tax income         7,490          7,468           5,624 Income taxes         1,358          1,367           1,050 Net income$        6,132 $        6,101  $        4,574       Earnings per share:       Basic:$0.89 $0.88  $0.66 Diluted:$0.88 $0.88  $0.66          Nine Months Ended   September 30,Statement of income information:   2025   2024 Total interest income  $        72,372  $        71,427 Total interest expense           24,071           28,181 Net interest income           48,301           43,246 (Release of) provision for credit losses           (16)          726 Non-interest income           10,724           10,798 Investment securities gains (losses), net           102           (7)Non-interest expense           37,589           36,603 Pre-tax income           21,554           16,708 Income taxes           3,938           3,049 Net income  $        17,616  $        13,659       Earnings per share:     Basic:  $2.54  $1.95 Diluted:  $2.53  $1.95  FINANCIAL SUMMARY (continued)(unaudited)$000  As of or for the three months ended September 30, June 30, September 30,  2025   2025   2024 Performance Ratios     Return on average assets 1.33%  1.36%  1.00%Return on average common equity 15.21   15.85   12.87 Net interest margin (FTE) 3.97   3.89   3.36 Efficiency ratio 62.30   62.32   66.23       Asset Quality Ratios     Non-performing loans (a)$4,911  $2,761  $4,066 Non-performing assets 7,336   5,186   8,451 Net charge-offs 41   51   636 Net charge-offs to average loans (b) 0.01%  0.01%  0.17%Allowance for credit losses to total loans 1.45   1.47   1.50 Non-performing loans to total loans 0.32   0.19   0.28 Non-performing assets to loans 0.48   0.35   0.58 Non-performing assets to total assets 0.38   0.28   0.47 Allowance for credit losses on loans to non-performing loans 446.02   781.24   539.52       Capital Ratios     Average stockholders' equity to average total assets 8.74%  8.56%  7.80%Period-end stockholders' equity to period-end assets 8.54   8.35   8.09 Total risk-based capital ratio 14.90   15.12   14.91 Tier 1 risk-based capital ratio 13.65   13.87   13.66 Common equity Tier 1 capital 10.71   10.82   10.53 Tier 1 leverage ratio 11.97   11.87   11.33  (a)   Non-performing loans include loans 90-days past due and accruing and non-accrual loans.(b)   Annualized About Hawthorn Bancshares Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 160 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton. Contact:Hawthorn Bancshares, Inc.Brent M. Giles Chief Executive OfficerTEL: 573.761.6100www.HawthornBancshares.com The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company's or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

Related News