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.
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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
News Market Reaction – HWBK
-0.21%
-0.21%Session close to close
In the Apr 30 session, HWBK declined 0.21%, reflecting a mild negative market reaction.
This announcement highlights stronger profitability for Hawthorn Bancshares in Q1 2026, with net inc...
Analysis
This announcement highlights stronger profitability for Hawthorn Bancshares in Q1 2026, with net income of $6.8 million, EPS of $0.98, a net interest margin of 4.07%, and an efficiency ratio of 60.46%. Credit quality metrics, including non‑performing assets at 0.47% of loans, and robust capital ratios such as total risk‑based capital of 15.91%, frame the risk profile. Historically, earnings releases have produced modestly positive share moves, so investors may watch future quarters for continued margin performance, asset quality trends, and any use of the $150 million shelf registration.
Key Figures
Net income:$6.8 millionDiluted EPS:$0.98Net interest margin (FTE):4.07%+5 more
8 metrics
Net income$6.8 millionQ1 2026, up 25.9% year-over-year
Diluted EPS$0.98Q1 2026, up from $0.77 in Q1 2025
Net interest margin (FTE)4.07%Q1 2026 vs 3.67% in Q1 2025
Efficiency ratio60.46%Q1 2026 vs 66.64% in Q1 2025
Return on avg assets1.49%Q1 2026 performance ratio
Return on avg equity15.41%Q1 2026 performance ratio
Loans held for investment$1.45 billionMarch 31, 2026 balance
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.
Pattern Detected
Earnings releases have consistently been positive and have generally coincided with modestly positive next-day moves.
Recent Company History
Over the past five earnings cycles, Hawthorn Bancshares has reported steadily improving profitability, with net income and EPS rising and net interest margin and efficiency ratio improving. Capital ratios remained strong and credit quality metrics stayed controlled. Shares typically moved modestly higher (average ~1.43%) after these reports, indicating the market has rewarded consistent execution. Today’s Q1 2026 update, featuring higher EPS, stronger margin and better efficiency, fits this pattern of incremental improvement.
Key Terms
net interest margin, efficiency ratio, non-performing assets, allowance for credit losses, +4 more
8 terms
net interest marginfinancial
"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 ratiofinancial
"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 assetsfinancial
"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 lossesfinancial
"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 ratioregulatory
"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 ratioregulatory
"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.
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 planfinancial
"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.
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 millionfrom 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
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.
