Hawthorn Bancshares Reports First Quarter 2026 Results

Hawthorn Bancshares (NASDAQ: HWBK) reported first quarter 2026 net income of $6.8M and diluted EPS of $0.98.

Rhea-AI Summary

Hawthorn Bancshares (NASDAQ: HWBK) reported first quarter 2026 net income of $6.8M and diluted EPS of $0.98. Net income rose 25.9% year-over-year and 9.6% sequentially. Net interest margin (FTE) was 4.07%, efficiency ratio improved to 60.46%, and the company remained well capitalized with total risk-based capital of 15.91%. Loans and deposits decreased modestly; non-performing assets to loans rose to 0.47%. The board approved a quarterly dividend of $0.21 per share and repurchased 12,000 shares in Q1, leaving $8.0M available under the repurchase plan.

Positive

• Net income +25.9% year-over-year to $6.8M
• Diluted EPS +27% year-over-year to $0.98
• Efficiency ratio improved to 60.46% from 66.64% a year earlier
• Capital: total risk-based capital at 15.91%, maintaining "well capitalized" status
• Declared quarterly dividend of $0.21 per share and repurchased 12,000 shares in Q1

Negative

• Loans held for investment decreased $32.6M (2.2%) sequentially
• Deposits decreased $35.8M (2.3%) sequentially
• Non-performing assets to loans rose to 0.47% from 0.21% year-over-year
• Allowance for credit losses decreased to 1.44% of loans, partially reflecting portfolio changes

Argus Apr 30 session

-0.21% close to close Open Argus

Details

News Market Reaction – HWBK

On Apr 30, the first trading day after this news, HWBK closed 0.21% below the previous close.

Data tracked by StockTitan Argus for the Apr 30 session.

Key Figures

Net income: $6.8 million Diluted EPS: $0.98 Net interest margin (FTE): 4.07% +5 more

Net income

$6.8 million

Q1 2026, up 25.9% year-over-year

Diluted EPS

$0.98

Q1 2026, up from $0.77 in Q1 2025

Net interest margin (FTE)

4.07%

Q1 2026 vs 3.67% in Q1 2025

Efficiency ratio

60.46%

Q1 2026 vs 66.64% in Q1 2025

Return on avg assets

1.49%

Q1 2026 performance ratio

Return on avg equity

15.41%

Q1 2026 performance ratio

Loans held for investment

$1.45 billion

March 31, 2026 balance

Total deposits

$1.52 billion

March 31, 2026 balance

Previous Earnings Reports

5 past events · Latest: Jan 28

Same Type 5 events

1. Jan 28

   Q4 & annual earnings

   24h Move

   +4.4%

   Stronger 2025 earnings, higher margin, better efficiency, and book value growth.

2. Oct 29

   Q3 earnings

   24h Move

   +0.9%

   Q3 2025 EPS and net income up over 30% with margin expansion.

3. Jul 30

   Q2 earnings

   24h Move

   +0.0%

   Q2 2025 earnings up over 30% with stronger margin and returns.

4. Apr 30

   Q1 earnings

   24h Move

   +0.8%

   Q1 2025 EPS up ~21% with better margin, efficiency and credit quality.

5. Jan 22

   Q4 & annual earnings

   24h Move

   +1.0%

   2024 earnings growth with margin improvement and solid capital and credit.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, efficiency ratio, non-performing assets, allowance for credit losses, +4 more

8 terms

net interest margin financial

"Net interest margin, on an FTE basis, was 4.07% for the current quarter"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

"The first quarter 2026 efficiency ratio was 60.46% compared to 62.64%"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

non-performing assets financial

"Credit quality remained stable with non-performing assets to total loans of 0.47%"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

"The allowance for credit losses at March 31, 2026 was $20.9 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

tier 1 leverage ratio regulatory

"tier 1 leverage 12.40%; and common equity to assets 9.51%"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

total risk-based capital ratio regulatory

"total risk-based capital to risk-weighted assets 15.91%"

The total risk-based capital ratio measures a financial firm's cushion against losses by comparing its available capital to its assets after those assets are adjusted for how risky they are. Think of it as the size of a safety net relative to the weight of everything being balanced on it: the bigger the ratio, the more able the firm is to absorb bad outcomes without defaulting or needing help. Investors watch this number because it signals regulatory strength, solvency, and how much room the firm has to pay dividends, lend or grow safely.

common equity tier 1 capital regulatory

"common equity tier 1 11.61%; tier 1 leverage 12.40%"

Core capital a bank holds consisting mainly of common shares and retained profits that can absorb losses without forcing the bank to sell assets or seek emergency help; items that can’t reliably cover losses are excluded. Think of it as the bank’s shock-absorbing cushion: a higher common equity tier 1 (CET1) level and ratio means regulators and investors view the bank as better able to survive bad loans or market shocks, so it signals lower risk to shareholders and creditors.

repurchase plan financial

"Pursuant to the Company's Repurchase Plan, management is given discretion"

A repurchase plan is a company program to buy back its own shares from the market, reducing the number of shares available to investors. Like a store taking products off the shelf to make each remaining item more valuable, buybacks can boost earnings per share and signal management’s confidence, which may raise the stock price; they also change how company profits are divided among shareholders and affect cash reserves.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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JEFFERSON CITY, Mo., April 29, 2026 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported first quarter 2026 net income of $6.8 million, or earnings per diluted share (“EPS”) of $0.98.

First Quarter 2026 Results

• Net income improved $1.4 million, or 25.9%, to $6.8 million from the first quarter 2025 (the "prior year quarter") and the efficiency ratio improved to 60.46% compared to 66.64% for the prior year quarter
• EPS of $0.98, an improvement of $0.21 per share, or 27%, from the prior year quarter
• Net interest margin, fully taxable equivalent ("FTE") remained consistent in the first quarter 2026 at 4.07% compared to 4.03% for the fourth quarter 2025 (the "prior quarter") and improved from 3.67% for the prior year quarter
• Provision for credit losses was $0.3 million lower than the prior quarter
• Return on average assets and equity of 1.49% and 15.41%, respectively
• Loans decreased $32.6 million, or 2.2%, and deposits decreased $35.8 million, or 2.3%, compared to the prior quarter
• Investments decreased $5.1 million, or 2.4%, compared to the prior quarter
• Credit quality remained stable with non-performing assets to total loans of 0.47% compared to 0.21% in the prior year quarter
• Remained "well capitalized" with total risk-based capital of 15.91%
• Book value per share was $25.58, an increase of $0.45, or 1.8%, compared to the prior quarter and $3.61, or 16.4%, compared to the prior year quarter
  
  

(unaudited)
$000, except per share data

		March 31,			December 31,			March 31,
		2026			2026			2025
Balance sheet information
Total assets		$	1,855,229		$	1,894,850		$	1,883,423
Loans held for investment			1,454,171			1,486,792			1,470,323
Investment securities			210,808			215,915			226,581
Deposits			1,518,316			1,554,149			1,543,888
Total stockholders’ equity			176,419			174,229			153,411
Market and per share data
Book value per share		$	25.58		$	25.13		$	21.97
Market price per share			33.69			34.88			28.23
Diluted earnings per share (QTR)			0.98			0.90			0.77

Financial Results for the First Quarter 2026

Earnings

Net income for the first quarter 2026 was $6.8 million, an increase of $0.59 million, or 9.6%, from the prior quarter, and an increase of $1.4 million, or 25.9%, from the prior year quarter. EPS improved to $0.98 for the first quarter 2026 compared to $0.90 for the prior quarter and $0.77 for the prior year quarter.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter 2026 was $17.1 million, a decrease of $0.5 million from the prior quarter, and an increase of $1.8 million from the prior year quarter.

Interest income increased $0.9 million compared to the prior year quarter, driven primarily by higher rates on earning assets in the current quarter, while interest expense decreased $0.9 million compared to the prior year quarter due to lower costs on deposits and borrowings. Net interest margin, on an FTE basis, was 4.07% for the current quarter, compared to 4.03% for the prior quarter, and 3.67% for the prior year quarter.

The yield earned on average loans held for investment decreased to 6.11%, on an FTE basis, for the first quarter 2026, compared to 6.13% for the prior quarter and 5.89% for the prior year quarter.

The average cost of deposits was 2.15% for the first quarter 2026, compared to 2.23% for the prior quarter and 2.44% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 28.0% as of March 31, 2026, compared to 27.3% and 27.7% at December 31, 2025 and March 31, 2025, respectively.

Non-interest Income

Total non-interest income for the first quarter 2026 was $4.4 million, an increase of $0.8 million, or 21.0%, from the prior quarter, and an increase of $0.9 million, or 25.3%, from the prior year quarter.

Non-interest Expense

Total non-interest expense for the first quarter 2026 was $13.0 million, a decrease of $0.3 million, or 2.2%, from the prior quarter, and an increase of $0.5 million, or 3.7%, from the prior year quarter.

The first quarter 2026 efficiency ratio was 60.46% compared to 62.64% and 66.64% 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 and an increase in non-interest income.

Loans

Loans held for investment decreased $32.6 million, or 2.2%, annualized, to $1.45 billion as of March 31, 2026 compared to December 31, 2025, and decreased $16.2 million, or 1.1% annualized, from March 31, 2025.

Investments

Investments decreased $5.1 million, or 2.4%, to $210.8 million as of March 31, 2026 compared to December 31, 2025, and decreased $15.8 million, or 7.0%, from March 31, 2025.

Asset Quality

Non-performing assets to total loans was 0.47% at both March 31, 2026, and December 31, 2025, compared to 0.21% at March 31, 2025. Non-performing assets totaled $6.9 million at March 31, 2026, compared to $7.0 million and $3.1 million at December 31, 2025 and March 31, 2025, respectively. The increase in the current year quarter compared to the prior year quarter was due to an increase in non-accrual loans in residential real estate offset by a reduction in other real estate owned.

In the first quarter 2026, the Company had net loan charge-offs of $0.06 million, or 0.02% annualized, of average loans, compared to net loan charge-offs of $1.1 million, or 0.30% of average loans, and $0.02 million, or 0.005% annualized, of average loans, in the prior quarter and prior year quarter, respectively.

The Company provided a provision for credit losses of $0.1 million for the first quarter 2026 compared to providing a $0.4 million provision in the prior quarter, and releasing a $0.3 million provision for the prior year quarter.

The allowance for credit losses at March 31, 2026 was $20.9 million, or 1.44% of outstanding loans, and 308.25% of non-performing loans. At December 31, 2025, the allowance for credit losses was $21.1 million, or 1.42% of outstanding loans, and 307.52% of non-performing loans. At March 31, 2025, the allowance for credit losses was $21.8 million, or 1.48% of outstanding loans, and 885.01% 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 March 31, 2026 as determined by management.

Deposits
Total deposits at March 31, 2026 were $1.52 billion, a decrease of $35.8 million, or 2.3%, from December 31, 2025, and a decrease of $25.6 million, or 1.7% annualized, from March 31, 2025. The decrease in deposits at March 31, 2026 as compared to March 31, 2025 was a result of decreases in savings, interest checking and money market accounts.

Capital

The Company maintains its “well capitalized” regulatory capital position. At March 31, 2026, capital ratios were as follows: total risk-based capital to risk-weighted assets 15.91%; tier 1 capital to risk-weighted assets 14.66%; common equity tier 1 11.61%; tier 1 leverage 12.40%; and common equity to assets 9.51%.

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 of Directors amended the plan on June 3, 2025 to increase the authorized repurchase limit to $10 million. The Company repurchased 12,000 common shares under the repurchase plan during the first three months of 2026 at an average cost of $32.68 per share totaling $0.4 million. As of March 31, 2026, $8.0 million remains available for share repurchases pursuant to the plan.

 On April 29, 2026, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per common share, payable July 1, 2026 to shareholders of record at the close of business on June 15, 2026.

[Tables follow]

FINANCIAL SUMMARY
(unaudited)
$000, except per share data

		Three Months Ended
		March 31,			December 31,			March 31,
Statement of income information:		2026			2026			2025
Total interest income		$	24,394		$	25,286		$	23,458
Total interest expense			7,292			7,707			8,164
Net interest income			17,102			17,579			15,294
Provision for (release of) credit losses			73			376			(340)
Non-interest income			4,338			3,585			3,463
Investment securities gains (losses), net			5			15			(2)
Non-interest expense			12,963			13,258			12,499
Pre-tax income			8,409			7,545			6,596
Income taxes			1,633			1,360			1,213
Net income		$	6,776		$	6,185		$	5,383
Earnings per share:
Basic:		$	0.98		$	0.90		$	0.77
Diluted:		$	0.98		$	0.90		$	0.77

FINANCIAL SUMMARY (continued)
(unaudited)
$000

		As of or for the three months ended
		March 31,				December 31,				March 31,
		2026				2026				2025
Performance Ratios
Return on average assets			1.49	%			1.33	%			1.20	%
Return on average common equity			15.41				14.47				14.29
Net interest margin (FTE)			4.07				4.03				3.67
Efficiency ratio			60.46				62.64				66.64
Asset Quality Ratios
Non-performing loans (a)		$	6,791			$	6,865			$	2,461
Non-performing assets			6,855				6,963				3,129
Net charge-offs			58				1,122				18
Net charge-offs to average loans (b)			0.02	%			0.30	%			0.00	%
Allowance for credit losses to total loans			1.44				1.42				1.48
Non-performing loans to total loans			0.47				0.46				0.17
Non-performing assets to loans			0.47				0.47				0.21
Non-performing assets to total assets			0.37				0.37				0.17
Allowance for credit losses on loans to non-performing loans			308.25				307.52				885.01
Capital Ratios
Average stockholders' equity to average total assets			9.67	%			9.16	%			8.42	%
Period-end stockholders' equity to period-end assets			9.51				9.19				8.15
Total risk-based capital ratio			15.91				15.49				14.94
Tier 1 risk-based capital ratio			14.66				14.24				13.69
Common equity Tier 1 capital			11.61				11.23				10.64
Tier 1 leverage ratio			12.40				12.12				11.64

       ^{(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 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 Officer
TEL: 573.761.6100
www.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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Hawthorn Bancshares (HWBK) Q1 2026 earnings and EPS?

Hawthorn reported Q1 2026 net income of $6.8M and diluted EPS of $0.98. According to the company, net income rose 25.9% year-over-year and 9.6% sequentially, driven by higher net interest income and increased non-interest income.

How did HWBK's net interest margin and efficiency ratio perform in Q1 2026?

Net interest margin (FTE) was 4.07% and the efficiency ratio was 60.46% in Q1 2026. According to the company, NIM improved year-over-year and the efficiency ratio benefited from higher NIM and increased non-interest income.

Did Hawthorn Bancshares (HWBK) report any changes in loans, deposits, or asset quality in Q1 2026?

Loans fell by $32.6M (2.2% sequentially) and deposits declined by $35.8M (2.3%). According to the company, non-performing assets to loans increased to 0.47%, with non-accrual residential real estate contributing to the rise.

What capital actions and shareholder returns did HWBK announce on April 29, 2026?

The board approved a quarterly cash dividend of $0.21 per share payable July 1, 2026, and the company repurchased 12,000 shares in Q1. According to the company, $8.0M remains available under the $10M repurchase authorization.