Hawthorn Bancshares Reports Second Quarter 2026 Results
Rhea-AI Summary
Hawthorn Bancshares (NASDAQ: HWBK) reported second quarter 2026 net income of $7.3 million and diluted EPS of $1.06, up 27.6% and 27.7% from the prior quarter and 20.1% and 20.0% from the prior year quarter, respectively. Return on average assets was 1.63% and return on average equity was 16.39%.
Net interest income rose to $17.3 million and net interest margin (FTE) improved to 4.16%. Non-interest income increased 72.1% quarter-over-quarter to $5.3 million, largely from a gain on the sale of an unused administrative office. Non-interest expense increased to $13.7 million, but the efficiency ratio improved to 60.66%.
Loans fell 2.6% sequentially to $1.42 billion, while investment securities grew 12.0% to $236.2 million. Deposits declined 2.0% quarter-over-quarter to $1.49 billion. Asset quality metrics showed non-performing assets at 0.53% of loans and annualized net charge-offs at 0.04% of average loans. The allowance for credit losses was $20.7 million, or 1.46% of loans.
The company remained “well capitalized” with a total risk-based capital ratio of 16.40% and period-end equity-to-assets of 10.31%. Book value per share rose to $26.50, up 4.2% from the prior quarter and 17.6% year-over-year. The Board increased the share repurchase authorization to $10 million, with $8.0 million remaining as of June 30, 2026, and approved a quarterly dividend of $0.21 per share payable October 1, 2026.
Positive
- Net income $7.3M, up 27.6% QoQ and 20.1% YoY in Q2 2026
- Diluted EPS $1.06, up from $0.83 QoQ and $0.88 YoY
- Net interest margin (FTE) 4.16%, improved from 4.07% QoQ and 3.89% YoY
- Non-interest income $5.3M, up 72.1% QoQ and 50.6% YoY
- Book value per share $26.50, up 4.2% QoQ and 17.6% YoY
- Total risk-based capital ratio 16.40%, remains above “well capitalized” thresholds
Negative
- Loans held for investment down 2.6% QoQ and 3.2% YoY to $1.42B
- Deposits down 2.0% QoQ and 2.0% annualized YoY to $1.49B
- Non-performing assets to loans rose to 0.53% from 0.35% YoY
- Provision for credit losses $0.24M versus a $0.05M release in prior-year quarter
- Non-interest expense $13.7M, up 5.4% QoQ and 11.7% YoY
News Explained
The release’s second-quarter figures are preliminary and unaudited; Hawthorn says they are not final until the company files its Form 10-Q.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | First-quarter earnings | Positive | -0.2% | Net income and EPS increased, but the 24-hour price reaction was -0.21%. |
| Jan 28 | Annual earnings report | Positive | +4.4% | Full-year net income increased 30.4%, followed by a 4.42% 24-hour price reaction. |
| Oct 29 | Third-quarter earnings | Positive | +0.9% | Net income and EPS rose year-over-year, followed by a 0.89% 24-hour price reaction. |
| Jul 30 | Second-quarter earnings | Positive | +0.0% | Net income increased 31.8% year-over-year, followed by a 0.03% 24-hour price reaction. |
| Apr 30 | First-quarter earnings | Positive | +0.8% | Net income increased 20.8% year-over-year, followed by a 0.78% 24-hour price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
HWBK's earnings announcements were aligned with positive price reactions in four of five tag-specific events, with the April 2026 earnings release the exception.
Key Terms
net interest margin financial
fully taxable equivalent financial
non-performing assets financial
common equity tier 1 financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
JEFFERSON CITY, Mo., July 29, 2026 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported second quarter 2026 net income of
Second Quarter 2026 Results
- Net income improved
$1.2 million , or20.1% , to$7.3 million from the second quarter 2025 (the "prior year quarter") and the efficiency ratio improved to60.66% compared to62.32% for the prior year quarter - EPS of
$1.06 , an improvement of$0.18 per share, or20% , from the prior year quarter - Net interest margin, fully taxable equivalent ("FTE") improved in the second quarter 2026 to
4.16% compared to4.07% for the first quarter 2026 (the "prior quarter”) and3.89% for the prior year quarter - Provision for credit losses was
$0.2 million higher than the prior quarter - Return on average assets and equity of
1.63% and16.39% , respectively - Loans decreased
$37.8 million , or2.6% , and deposits decreased$30.1 million , or2.0% , compared to the prior quarter - Investments increased
$25.4 million , or12.0% , compared to the prior quarter - Credit quality remained stable with non-performing assets to total loans of
0.53% compared to0.35% in the prior year quarter - Remained "well capitalized" with total risk-based capital of
16.40% - Book value per share was
$26.50 , an increase of$1.07 , or4.2% , compared to the prior quarter and$3.97 , or17.6% , compared to the prior year quarter
(unaudited)
| June 30, | March 31, | June 30, | ||||||
| 2026 | 2026 | 2025 | ||||||
| Balance sheet information | ||||||||
| Total assets | $ | 1,773,040 | $ | 1,855,860 | $ | 1,877,417 | ||
| Loans held for investment | 1,416,360 | 1,454,171 | 1,462,898 | |||||
| Investment securities | 236,171 | 210,808 | 229,392 | |||||
| Deposits | 1,488,189 | 1,518,316 | 1,517,986 | |||||
| Total stockholders’ equity | 182,794 | 175,386 | 156,823 | |||||
| Market and per share data | ||||||||
| Book value per share | $ | 26.50 | $ | 25.43 | $ | 22.53 | ||
| Market price per share | 39.30 | 33.69 | 29.14 | |||||
| Diluted earnings per share (QTR) | 1.06 | 0.83 | 0.88 | |||||
Financial Results for the Second Quarter 2026
Earnings
Net income for the second quarter 2026 was
Net Interest Income and Net Interest Margin
Net interest income for the second quarter 2026 was
Interest income increased
The yield earned on average loans held for investment increased to
The average cost of deposits was
Non-interest Income
Total non-interest income for the second quarter 2026 was
Non-interest Expense
Total non-interest expense for the second quarter 2026 was
The second quarter 2026 efficiency ratio was
Loans
Loans held for investment decreased
Investments
Investments increased
Asset Quality
Non-performing assets to total loans was
In the second quarter 2026, the Company had net loan charge-offs of
The Company provided a provision for credit losses of
The allowance for credit losses at June 30, 2026 was
Deposits
Total deposits at June 30, 2026 were
Capital
The Company maintains its “well capitalized” regulatory capital position. At June 30, 2026, capital ratios were as follows: total risk-based capital to risk-weighted assets
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 July 29, 2026 to increase the authorized repurchase limit to
On July 29, 2026, the Company's Board of Directors approved a quarterly cash dividend of
[Tables follow]
FINANCIAL SUMMARY
(unaudited)
| Three Months Ended | |||||||||
| June 30, | March 31, | June 30, | |||||||
| Statement of income information: | 2026 | 2026 | 2025 | ||||||
| Total interest income | $ | 24,352 | $ | 24,394 | $ | 23,911 | |||
| Total interest expense | 7,094 | 7,292 | 7,769 | ||||||
| Net interest income | 17,258 | 17,102 | 16,142 | ||||||
| Provision for (release of) credit losses | 238 | 73 | (51 | ) | |||||
| Non-interest income | 5,337 | 3,101 | 3,545 | ||||||
| Investment securities gains (losses), net | 280 | 5 | (1 | ) | |||||
| Non-interest expense | 13,707 | 13,003 | 12,269 | ||||||
| Pre-tax income | 8,930 | 7,132 | 7,468 | ||||||
| Income taxes | 1,604 | 1,389 | 1,367 | ||||||
| Net income | $ | 7,326 | $ | 5,743 | $ | 6,101 | |||
| Earnings per share: | |||||||||
| Basic: | $ | 1.06 | $ | 0.83 | $ | 0.88 | |||
| Diluted: | $ | 1.06 | $ | 0.83 | $ | 0.88 | |||
| Six Months Ended | |||||||||
| June 30, | |||||||||
| Statement of income information: | 2026 | 2025 | |||||||
| Total interest income | $ | 48,746 | $ | 47,369 | |||||
| Total interest expense | 14,386 | 15,933 | |||||||
| Net interest income | 34,360 | 31,436 | |||||||
| Provision for (release of) credit losses | 311 | (391 | ) | ||||||
| Non-interest income | 8,477 | 7,008 | |||||||
| Investment securities gains (losses), net | 285 | (3 | ) | ||||||
| Non-interest expense | 26,749 | 24,768 | |||||||
| Pre-tax income | 16,062 | 14,064 | |||||||
| Income taxes | 2,993 | 2,580 | |||||||
| Net income | $ | 13,069 | $ | 11,484 | |||||
| Earnings per share: | |||||||||
| Basic: | $ | 1.89 | $ | 1.65 | |||||
| Diluted: | $ | 1.89 | $ | 1.65 | |||||
FINANCIAL SUMMARY (continued)
(unaudited)
| As of or for the three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2026 | 2026 | 2025 | |||||||||
| Performance Ratios | |||||||||||
| Return on average assets | 1.63 | % | 1.26 | % | 1.36 | % | |||||
| Return on average common equity | 16.39 | 13.07 | 15.85 | ||||||||
| Net interest margin (FTE) | 4.16 | 4.07 | 3.89 | ||||||||
| Efficiency ratio | 60.66 | 64.29 | 62.32 | ||||||||
| Asset Quality Ratios | |||||||||||
| Non-performing loans (a) | $ | 6,655 | $ | 6,791 | $ | 2,761 | |||||
| Non-performing assets | 7,500 | 6,855 | 5,186 | ||||||||
| Net charge-offs | 138 | 58 | 51 | ||||||||
| Net charge-offs to average loans (b) | 0.04 | % | 0.02 | % | 0.01 | % | |||||
| Allowance for credit losses to total loans | 1.46 | 1.44 | 1.47 | ||||||||
| Non-performing loans to total loans | 0.47 | 0.47 | 0.19 | ||||||||
| Non-performing assets to loans | 0.53 | 0.47 | 0.35 | ||||||||
| Non-performing assets to total assets | 0.42 | 0.37 | 0.28 | ||||||||
| Allowance for credit losses on loans to non-performing loans | 311.50 | 308.25 | 781.24 | ||||||||
| Capital Ratios | |||||||||||
| Average stockholders' equity to average total assets | 9.94 | % | 9.67 | % | 8.56 | % | |||||
| Period-end stockholders' equity to period-end assets | 10.31 | 9.45 | 8.35 | ||||||||
| Total risk-based capital ratio | 16.40 | 15.84 | 15.12 | ||||||||
| Tier 1 risk-based capital ratio | 15.15 | 14.59 | 13.87 | ||||||||
| Common equity Tier 1 capital | 12.07 | 11.54 | 10.82 | ||||||||
| Tier 1 leverage ratio | 12.91 | 12.34 | 11.87 | ||||||||
(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.
