Hawthorn Bancshares Q3 earnings rise 15.2% to $7.1M
Nine northern Missouri branches joined Hawthorn through the completed FSC acquisition, and the board approved a $0.21 quarterly dividend payable January 1, 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Hawthorn Bancshares, Inc. reported third-quarter 2026 net income of $7.1 million, up 15.2% year over year, and diluted EPS of $1.01, up 15%. Net interest income was $19.3 million, and fully taxable equivalent net interest margin was 4.41%, compared with 3.97% a year earlier. At September 30, 2026, total assets were $2.141 billion, loans held for investment were $1.69 billion, and deposits were $1.79 billion.
Hawthorn completed its acquisition of FSC Bancshares, Inc. and Farmers State Bank on September 3, 2026, paying $17.0 million in cash and issuing 413,042 shares. The transaction added nine full-service branches in northern Missouri. Farmers State Bank operates as a separate Hawthorn Bank division; its merger into Hawthorn Bank is expected in March 2027. Non-performing assets were $9.9 million, or 0.59% of total loans, at September 30, compared with 0.48% a year earlier.
The board approved a quarterly cash dividend of $0.21 per common share, payable January 1, 2027, to shareholders of record December 15, 2026. During the first nine months of 2026, Hawthorn repurchased 12,000 shares at an average cost of $32.68 per share; $10.0 million remained available under the plan at September 30.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income: $7.1 million, up 15.2% year over year.
- Moderate pointFSC acquisition: completed September 3; added nine full-service branches.
Negative
- Moderate pointNon-interest income: fell 31.1% quarter over quarter after the prior-quarter office-sale gain.
Filing Explained
The third-quarter 2026 results in Hawthorn’s release are preliminary and unaudited, not final; the company says they are not final until it files its quarterly report on Form 10-Q.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net income: $7.1 million
Diluted EPS: $1.01 per share
Net interest margin (FTE): 4.41%
+5 more
8 metrics
Net income
$7.1 million
Third quarter 2026; up 15.2% from the prior-year quarter
Diluted EPS
$1.01 per share
Third quarter 2026; up $0.13, or 15%, from the prior-year quarter
Net interest margin (FTE)
4.41%
Third quarter 2026; compared with 3.97% in the prior-year quarter
Total assets
$2.141 billion
As of September 30, 2026
Loans held for investment
$1.69 billion
As of September 30, 2026
Deposits
$1.79 billion
As of September 30, 2026
FSC acquisition consideration
$17.0 million cash and 413,042 shares
Acquisition completed September 3, 2026
Quarterly cash dividend
$0.21 per common share
Payable January 1, 2027
Key Terms
fully taxable equivalent, non-performing assets, allowance for credit losses, common equity Tier 1
4 terms
fully taxable equivalent financial
"Net interest margin, fully taxable equivalent (FTE)"
A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.
non-performing assets financial
"Non-performing assets to total loans"
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 September 30, 2026"
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.
common equity Tier 1 financial
"common equity Tier 1 10.15%"
Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.
Earnings Snapshot
Net income: $7.1 million
Third quarter 2026
Net income
$7.1 million
Up 15.2% from the prior-year quarter
Diluted EPS
$1.01 per share
Up $0.13, or 15%, from the prior-year quarter
Net interest income
$19.3 million
$2.4 million higher than the prior-year quarter
Net interest margin (FTE)
4.41%
Compared with 3.97% in the prior-year quarter
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did HWBK earn in the third quarter of 2026?
Hawthorn reported net income of $7.1 million and diluted EPS of $1.01 for the third quarter of 2026. Net income was up 15.2% and diluted EPS rose $0.13, or 15%, from the prior-year quarter; adjusted net income was $8.6 million and adjusted diluted EPS was $1.23.
What dividend did HWBK approve?
HWBK approved a quarterly cash dividend of $0.21 per common share, payable January 1, 2027, to shareholders of record at the close of business on December 15, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 28, 2026
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code) | ||
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 30, 2026, Hawthorn Bancshares, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2026. A copy of the press release is attached to this report as Exhibit 99.1.
The information set forth in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being “furnished” and shall not be deemed “filed” for the purposes of or otherwise subject to liabilities under Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed to be incorporated by reference into the filings of Hawthorn Bancshares, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Item 8.01 Other Events.
On October 30, 2026, Hawthorn Bancshares, Inc. announced that on October 28, 2026 its Board of Directors approved a quarterly cash dividend of $0.21 per common share. The dividend is payable on January 1, 2027 to shareholders of record at the close of business on December 15, 2026. A copy of the press release relating to such announcement is attached to this report as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No | Description | ||||
| 99.1 | Press release, dated October 30, 2026, issued by Hawthorn Bancshares, Inc. announcing its financial results for the three and nine months ended September 30, 2026 | ||||
| 99.2 | Press release, dated October 30, 2026, issued by Hawthorn Bancshares, Inc. announcing cash dividends | ||||
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 30, 2026 | Hawthorn Bancshares, Inc. By: /s/ Brent M. Giles Name: Brent M. Giles Title: Chief Executive Officer | ||||||||||
3
Exhibit 99.1
Hawthorn Bancshares Reports Third Quarter 2026 Results
Jefferson City, MO — October 30, 2026 — Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported third quarter 2026 net income of $7.1 million, or earnings per diluted share (“EPS”) of $1.01.
Third Quarter 2026 Results
•Net income improved $0.9 million, or 15.2%, to $7.1 million from the third quarter 2025 (the "prior year quarter"). Adjusted net income(a) for the third quarter 2026 was $8.6 million. The efficiency ratio was 65.00% compared to 62.30% for the prior year quarter. The adjusted efficiency ratio(a) for the third quarter 2026 was 55.64%.
•EPS of $1.01, an improvement of $0.13 per share, or 15%, from the prior year quarter. Adjusted EPS(a) for the third quarter 2026 was $1.23, an increase of 38.2% over the prior year quarter.
•Net interest margin, fully taxable equivalent ("FTE") improved in the third quarter 2026 to 4.41% compared to 4.16% for the second quarter 2026 (the "prior quarter”) and 3.97% for the prior year quarter
•Provision for credit losses was $0.1 million higher than the prior quarter
•Return on average assets and equity of 1.48% and 14.91%, respectively. Adjusted return on average assets(a) and equity(a) of 1.80% and 18.17%, respectively.
•Loans increased $273.8 million, or 19.3%, and deposits increased $302.8 million, or 20.3%, compared to the prior quarter, mainly due to acquisition of FSC Bancshares, Inc.
•Investments increased $41.7 million, or 17.7%, compared to the prior quarter, mainly due to acquisition of FSC Bancshares, Inc.
•Credit quality remained stable with non-performing assets to total loans of 0.59% compared to 0.48% in the prior year quarter
•Remained "well capitalized" with total risk-based capital of 14.29%
•Book value per share was $27.29, an increase of $0.79, or 3.0%, compared to the prior quarter and $3.53, or 14.9%, compared to the prior year quarter. Tangible book value per common share(a) was $23.58 for the third quarter 2026.
(a)Represents a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section for a reconciliation of this measure
1
(unaudited)
$000, except per share data
| September 30, | June 30, | September 30, | |||||||||||||||
| 2026 | 2026 | 2025 | |||||||||||||||
| Balance sheet information | |||||||||||||||||
| Total assets | $ | 2,141,080 | $ | 1,773,040 | $ | 1,932,105 | |||||||||||
| Loans held for investment | 1,690,134 | 1,416,360 | 1,514,002 | ||||||||||||||
| Investment securities | 277,904 | 236,171 | 226,017 | ||||||||||||||
| Deposits | 1,790,950 | 1,488,189 | 1,525,917 | ||||||||||||||
| Total stockholders’ equity | 191,040 | 182,794 | 164,938 | ||||||||||||||
| Market and per share data | |||||||||||||||||
| Book value per share | $ | 27.29 | $ | 26.50 | $ | 23.76 | |||||||||||
| Tangible book value per share (a) | 23.58 | 26.51 | 23.88 | ||||||||||||||
| Market price per share | 38.02 | 39.30 | 31.04 | ||||||||||||||
| Diluted earnings per share (QTR) | 1.01 | 1.06 | 0.88 | ||||||||||||||
| Adjusted diluted earnings per share (QTR) (a) | 1.23 | 1.12 | 0.88 | ||||||||||||||
(a)Represents a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section for a reconciliation of this measure
Financial Results for the Third Quarter 2026
Earnings
Net income for the third quarter 2026 was $7.1 million, a decrease of $0.26 million, or 3.6%, from the prior quarter, and an increase of $0.9 million, or 15.2%, from the prior year quarter. Diluted EPS decreased to $1.01 for the third quarter 2026 compared to $1.06 for the prior quarter and $0.88 for the prior year quarter.
Net Interest Income and Net Interest Margin
Net interest income for the third quarter 2026 was $19.3 million, an increase of $2.0 million from the prior quarter, and an increase of $2.4 million from the prior year quarter.
Interest income increased $1.8 million compared to the prior year quarter, driven primarily by higher rates on earning assets in the current quarter, while interest expense decreased $0.7 million compared to the prior year quarter due to lower costs on deposits. Net interest margin, on an FTE basis, was 4.41% for the current quarter, compared to 4.16% for the prior quarter, and 3.97% for the prior year quarter.
The yield earned on average loans held for investment increased to 6.42%, on an FTE basis, for the third quarter 2026, compared to 6.18% for the prior quarter and 6.12% for the prior year quarter.
The average cost of deposits was 2.13% for the third quarter 2026, compared to 2.13% for the prior quarter and 2.36% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 26.6% as of September 30, 2026, compared to 28.0% and 27.8% at June 30, 2026 and September 30, 2025, respectively.
2
Non-interest Income
Total non-interest income for the third quarter 2026 was $3.7 million, a decrease of $1.7 million, or 31.1%, from the prior quarter, and no change from the prior year quarter. The decrease during the quarter was primarily due the recognition of a gain on the sale of a bank administrative office that was no longer being used in the prior quarter that did not recur during the third quarter 2026.
Non-interest Expense
Total non-interest expense for the third quarter 2026 was $14.9 million, an increase of $1.2 million, or 8.7%, from the prior quarter, and an increase of $2.1 million, or 16.6%, from the prior year quarter.
The third quarter 2026 efficiency ratio was 65.00% compared to 60.73% and 62.30% 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.
Acquisition related expenses for the third quarter 2026 was $2.0 million, an increase of $1.4 million, or 251.2%, from the prior quarter. No acquisition related expenses were paid in the prior year quarter.
Income Taxes
Total income tax provision expense for the third quarter 2026 was $0.8 million, a decrease of $0.8 million, or 51.1%, from the prior quarter, and a decrease of $0.6 million, or 42.2%, from the prior year quarter, reflecting an effective tax rate of 10.0%, 17.96%,and 18.1%, respectively. The decrease in the effective tax rate during the third quarter 2026 was due to the utilization of federal income tax credits purchased at a discount which reduced tax expense during the quarter.
Loans
Loans held for investment increased $273.8 million, or 19.3%, to $1.69 billion as of September 30, 2026 compared to June 30, 2026, and increased $176.1 million, or 11.6% from September 30, 2025. The increases are mainly attributed to the acquisition of FSC Bancshares, Inc.
Investments
Investments increased $41.7 million, or 17.7%, to $277.9 million as of September 30, 2026 compared to June 30, 2026, and increased $51.9 million, or 23.0%, from September 30, 2025. The increases are mainly attributed to the acquisition of FSC Bancshares, Inc.
Asset Quality
Non-performing assets to total loans was 0.59% at September 30, 2026, 0.53% at June 30, 2026, and 0.48% at September 30, 2025. Non-performing assets totaled $9.9 million at September 30, 2026, compared to $7.5 million and $7.3 million at June 30, 2026 and September 30, 2025, respectively. The increase in the current year quarter compared to the prior year quarter was due to an increase in non-accrual loans within the commercial loan segment.
In the third quarter 2026, the Company had net loan charge-offs of $0.07 million, or 0.02% annualized, of average loans, compared to net loan charge-offs of $0.14 million, or 0.04% of
3
average loans, and $0.04 million, or 0.01% annualized, of average loans, in the prior quarter and prior year quarter, respectively.
The Company provided a provision for credit losses of $0.3 million for the third quarter 2026 compared to providing a $0.2 million provision in the prior quarter, and providing a $0.4 million provision for the prior year quarter.
The allowance for credit losses at September 30, 2026 was $24.4 million, or 1.45% of outstanding loans, and 248.71% of non-performing loans. At June 30, 2026, the allowance for credit losses was $20.7 million, or 1.46% of outstanding loans, and 311.50% of non-performing loans. At September 30, 2025, the allowance for credit losses was $21.9 million, or 1.45% of outstanding loans, and 446.02% 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, 2026 as determined by management. The increase in the current quarter is largely driven by the Day 1 allowance for credit losses recorded in conjunction with the acquisition of FSC Bancshares, Inc.
Deposits
Total deposits at September 30, 2026 were $1.79 billion, an increase of $302.8 million, or 20.3%, from June 30, 2026, and an increase of $265.0 million, or 17.4% annualized, from September 30, 2025. The increases were mainly attributed to the acquisition of FSC Bancshares, Inc.
Capital
The Company maintains its “well capitalized” regulatory capital position. At September 30, 2026, capital ratios were as follows: total risk-based capital to risk-weighted assets 14.29%; tier 1 capital to risk-weighted assets 13.04%; common equity tier 1 10.15%; tier 1 leverage 12.59%; and common equity to assets 8.92%.
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 $10 million. The Company repurchased 12,000 common shares under the repurchase plan during the first nine months of 2026 at an average cost of $32.68 per share totaling $0.4 million. As of September 30, 2026, $10.0 million remains available for share repurchases pursuant to the plan.
On October 30, 2026, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per common share, payable January 1, 2027 to shareholders of record at the close of business on December 15, 2026.
Merger with FSC Bancshares, Inc.
On September 3, 2026, the Company completed its acquisition of FSC Bancshares, Inc. and its wholly owned subsidiary, Farmers State Bank (collectively, “FSC”) whereby FSC Bancshares, Inc. was merged with and into Hawthorn Bancshares, Inc. and Farmers State Bank was merged with and into Hawthorn Bank. Pursuant to the merger agreement executed on April 29, 2026, the Company paid $17.0 million of cash consideration and issued 413,042 shares of Company stock. The Company and the Bank assumed all of the assets and liabilities of the FSC entities with which they merged by operation of law. The acquisition added 9 full-service branch locations located in northern Missouri.
Farmers State Bank's results of operations were included in Hawthorn's consolidated results of operations beginning September 3, 2026. Hawthorn will operate Farmers State Bank as a
4
separate division of Hawthorn Bank until it is merges with and into Hawthorn Bank, which is expected to occur in March 2027.
[Tables follow]
5
FINANCIAL SUMMARY
(unaudited)
$000, except per share data
| Three Months Ended | |||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||
| Statement of income information: | 2026 | 2026 | 2025 | ||||||||||||||
| Total interest income | $ | 26,774 | $ | 24,352 | $ | 25,003 | |||||||||||
| Total interest expense | 7,484 | 7,094 | 8,138 | ||||||||||||||
| Net interest income | 19,290 | 17,258 | 16,865 | ||||||||||||||
| Provision for credit losses | 300 | 238 | 375 | ||||||||||||||
| Non-interest income | 3,704 | 5,377 | 3,716 | ||||||||||||||
| Investment securities gains net | 98 | 280 | 105 | ||||||||||||||
| Non-interest expense | 14,945 | 13,747 | 12,821 | ||||||||||||||
| Pre-tax income | 7,847 | 8,930 | 7,490 | ||||||||||||||
| Income taxes | 785 | 1,604 | 1,358 | ||||||||||||||
| Net income | $ | 7,062 | $ | 7,326 | $ | 6,132 | |||||||||||
| Earnings per share: | |||||||||||||||||
| Basic: | $ | 1.01 | $ | 1.06 | $ | 0.89 | |||||||||||
| Adjusted basic (a): | $ | 1.23 | $ | 1.13 | $ | 0.89 | |||||||||||
| Diluted: | $ | 1.01 | $ | 1.06 | $ | 0.88 | |||||||||||
| Adjusted diluted (a): | $ | 1.23 | $ | 1.12 | $ | 0.88 | |||||||||||
| Nine Months Ended | |||||||||||||||||
| September 30, | |||||||||||||||||
| Statement of income information: | 2026 | 2025 | |||||||||||||||
| Total interest income | $ | 75,519 | $ | 72,372 | |||||||||||||
| Total interest expense | 21,869 | 24,072 | |||||||||||||||
| Net interest income | 53,650 | 48,300 | |||||||||||||||
| Provision for (release of) credit losses | 611 | (16) | |||||||||||||||
| Non-interest income | 12,180 | 10,725 | |||||||||||||||
| Investment securities gains net | 383 | 102 | |||||||||||||||
| Non-interest expense | 41,693 | 37,589 | |||||||||||||||
| Pre-tax income | 23,909 | 21,554 | |||||||||||||||
| Income taxes | 3,778 | 3,938 | |||||||||||||||
| Net income | $ | 20,131 | $ | 17,616 | |||||||||||||
| Earnings per share: | |||||||||||||||||
| Basic: | $ | 2.90 | $ | 2.54 | |||||||||||||
| Adjusted basic (a): | $ | 3.20 | $ | 2.54 | |||||||||||||
| Diluted: | $ | 2.90 | $ | 2.53 | |||||||||||||
| Adjusted diluted (a): | $ | 3.20 | $ | 2.53 | |||||||||||||
(a)Represents a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section for a reconciliation of this measure
6
FINANCIAL SUMMARY (continued)
(unaudited)
$000
| As of or for the three months ended | |||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||
| 2026 | 2026 | 2025 | |||||||||||||||
| Performance Ratios | |||||||||||||||||
| Return on average assets | 1.48 | % | 1.63 | % | 1.33 | % | |||||||||||
| Adjusted return on average assets (c) | 1.80 | 1.73 | 1.33 | ||||||||||||||
| Return on average common equity | 14.91 | 16.39 | 15.21 | ||||||||||||||
| Adjusted return on average common equity (c) | 18.17 | 17.38 | 15.21 | ||||||||||||||
| Return on average tangible common equity (c) | 17.30 | 16.39 | 15.21 | ||||||||||||||
| Adjusted return on average tangible common equity (c) | 21.09 | 17.38 | 15.21 | ||||||||||||||
| Net interest margin (FTE) | 4.41 | 4.16 | 3.97 | ||||||||||||||
| Efficiency ratio | 65.00 | 60.73 | 62.30 | ||||||||||||||
| Adjusted efficiency ratio (c) | 55.64 | 58.27 | 62.30 | ||||||||||||||
| Asset Quality Ratios | |||||||||||||||||
| Non-performing loans (a) | $ | 9,828 | $ | 6,655 | $ | 4,911 | |||||||||||
| Non-performing assets | 9,929 | 7,500 | 7,336 | ||||||||||||||
| Net charge-offs | 67 | 138 | 41 | ||||||||||||||
| Net charge-offs to average loans (b) | 0.02 | % | 0.04 | % | 0.01 | % | |||||||||||
| Allowance for credit losses to total loans | 1.45 | 1.46 | 1.45 | ||||||||||||||
| Non-performing loans to total loans | 0.58 | 0.47 | 0.32 | ||||||||||||||
| Non-performing assets to loans | 0.59 | 0.53 | 0.48 | ||||||||||||||
| Non-performing assets to total assets | 0.46 | 0.42 | 0.38 | ||||||||||||||
| Allowance for credit losses on loans to non-performing loans | 248.71 | 311.50 | 446.02 | ||||||||||||||
| Capital Ratios | |||||||||||||||||
| Average stockholders' equity to average total assets | 9.92 | % | 9.94 | % | 8.74 | % | |||||||||||
| Period-end stockholders' equity to period-end assets | 8.92 | 10.31 | 8.54 | ||||||||||||||
| Total risk-based capital ratio | 14.29 | 16.40 | 14.90 | ||||||||||||||
| Tier 1 risk-based capital ratio | 13.04 | 15.15 | 13.65 | ||||||||||||||
| Common equity Tier 1 capital | 10.15 | 12.07 | 10.71 | ||||||||||||||
| Tier 1 leverage ratio | 12.59 | 12.91 | 11.97 | ||||||||||||||
(a)Non-performing loans include loans 90-days past due and accruing and non-accrual loans.
(b)Annualized
(c)Represents a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section for a reconciliation of this measure
7
Non-GAAP Financial Measures
(unaudited)
$000, except per share data
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Adjusted net income: | |||||||||||||||||||||||||||||
| Net income | $ | 7,062 | $ | 7,326 | $ | 6,132 | $ | 20,131 | $ | 17,616 | |||||||||||||||||||
| Add: Acquisition Costs | 1,955 | 557 | — | 2,634 | — | ||||||||||||||||||||||||
Less: Tax effect(a) | (411) | (117) | — | (553) | — | ||||||||||||||||||||||||
| Adjusted net income | $ | 8,606 | $ | 7,766 | $ | 6,132 | $ | 22,212 | $ | 17,616 | |||||||||||||||||||
| Weighted average common shares outstanding | 6,999,449 | 6,895,811 | 6,908,248 | 6,931,289 | 6,942,053 | ||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 7,017,346 | 6,906,497 | 6,922,020 | 6,946,821 | 6,955,109 | ||||||||||||||||||||||||
| Earnings per common share | $ | 1.01 | $ | 1.06 | $ | 0.89 | $ | 2.90 | $ | 2.54 | |||||||||||||||||||
| Adjusted earnings per common share | $ | 1.23 | $ | 1.13 | $ | 0.89 | $ | 3.20 | $ | 2.54 | |||||||||||||||||||
| Diluted earnings per common share | $ | 1.01 | $ | 1.06 | $ | 0.88 | $ | 2.90 | $ | 2.53 | |||||||||||||||||||
| Adjusted diluted earnings per common share | $ | 1.23 | $ | 1.12 | $ | 0.88 | $ | 3.20 | $ | 2.53 | |||||||||||||||||||
(a)Represents the tax impact of the adjustments at a tax rate of 21%, plus permanent tax expense associated with merger related transactions
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Adjusted return on average assets: | |||||||||||||||||||||||||||||
| Net income | $ | 7,062 | $ | 7,326 | $ | 6,132 | $ | 20,131 | $ | 17,616 | |||||||||||||||||||
| Adjusted net income | 8,606 | 7,766 | 6,132 | 22,212 | 17,616 | ||||||||||||||||||||||||
| Average assets | $ | 1,895,259 | $ | 1,803,267 | $ | 1,828,679 | $ | 1,847,395 | $ | 1,815,457 | |||||||||||||||||||
| Return on average assets | 1.48 | % | 1.63 | % | 1.33 | % | 1.46 | % | 1.30 | % | |||||||||||||||||||
| Adjusted return on average assets | 1.80 | % | 1.73 | % | 1.33 | % | 1.61 | % | 1.30 | % | |||||||||||||||||||
8
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Adjusted return on average common equity: | |||||||||||||||||||||||||||||
| Net income | $ | 7,062 | $ | 7,326 | $ | 6,132 | $ | 20,131 | $ | 17,616 | |||||||||||||||||||
| Adjusted net income | 8,606 | 7,766 | 6,132 | 22,212 | 17,616 | ||||||||||||||||||||||||
| Average common equity | 187,933 | 179,233 | 159,900 | 181,838 | 155,690 | ||||||||||||||||||||||||
| Less: goodwill and other intangible assets | (25,999) | — | — | (25,999) | — | ||||||||||||||||||||||||
| Average tangible common equity | $ | 161,934 | $ | 179,233 | $ | 159,900 | $ | 155,839 | $ | 155,690 | |||||||||||||||||||
| Return on average common equity | 14.91 | % | 16.39 | % | 15.21 | % | 14.80 | % | 15.13 | % | |||||||||||||||||||
| Adjusted return on average common equity | 18.17 | % | 17.38 | % | 15.21 | % | 16.33 | % | 15.13 | % | |||||||||||||||||||
| Return on average tangible common equity | 17.30 | % | 16.39 | % | 15.21 | % | 17.27 | % | 15.13 | % | |||||||||||||||||||
| Adjusted return on average tangible common equity | 21.09 | % | 17.38 | % | 15.21 | % | 19.06 | % | 15.13 | % | |||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Adjusted Efficiency Ratio | |||||||||||||||||||||||||||||
| Non-interest expense | $ | 14,945 | $ | 13,747 | $ | 12,821 | $ | 41,693 | $ | 37,589 | |||||||||||||||||||
| Less: acquisition costs | (1,955) | (557) | — | (2,634) | — | ||||||||||||||||||||||||
| Less core deposit intangible amortization | (196) | — | — | (196) | — | ||||||||||||||||||||||||
| Adjusted non-interest expense | $ | 12,794 | $ | 13,190 | $ | 12,821 | $ | 38,863 | $ | 37,589 | |||||||||||||||||||
| Net interest income | 19,290 | 17,258 | 16,865 | 53,650 | 48,300 | ||||||||||||||||||||||||
| Non-interest income | 3,704 | 5,377 | 3,716 | 12,180 | 10,725 | ||||||||||||||||||||||||
| Total income | $ | 22,994 | $ | 22,635 | $ | 20,581 | $ | 65,830 | $ | 59,025 | |||||||||||||||||||
| Efficiency Ratio | 65.00 | % | 60.73 | % | 62.30 | % | 63.33 | % | 63.68 | % | |||||||||||||||||||
| Adjusted Efficiency Ratio | 55.64 | % | 58.27 | % | 62.30 | % | 59.04 | % | 63.68 | % | |||||||||||||||||||
9
| Quarter Ended | |||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||
| 2026 | 2026 | 2025 | |||||||||||||||
| Tangible common stockholders' equity: | |||||||||||||||||
| Total stockholders' equity | $ | 191,040 | $ | 182,794 | $ | 164,938 | |||||||||||
| Less: goodwill and other intangible assets | (25,999) | — | — | ||||||||||||||
| Tangible common stockholders' equity | $ | 165,041 | $ | 182,794 | $ | 164,938 | |||||||||||
| Weighted average common shares outstanding | 6,999,449 | 6,895,811 | 6,908,248 | ||||||||||||||
| Diluted weighted average common shares outstanding | 7,017,346 | 6,906,497 | 6,922,020 | ||||||||||||||
| Book value per common share | $ | 27.29 | $ | 26.51 | $ | 23.88 | |||||||||||
| Tangible book value per common share | $ | 23.58 | $ | 26.51 | $ | 23.88 | |||||||||||
| Book value per diluted common share | $ | 27.22 | $ | 26.47 | $ | 23.83 | |||||||||||
| Tangible book value per diluted common share | $ | 23.52 | $ | 26.47 | $ | 23.83 | |||||||||||
10
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 providing a range of business and personal banking services and wealth management services. Hawthorn Bank operates branch offices in central, southern, northwest Missouri, and also the Kansas City metropolitan area, including one branch in Kansas.
Contact:
Hawthorn Bancshares, Inc.
Brent M. Giles
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
www.HawthornBancshares.com
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.
11
Exhibit 99.2
Hawthorn Bancshares Announces Cash Dividend
Jefferson City, MO. — October 30, 2026 — Hawthorn Bancshares, Inc. (NASDAQ: HWBK) announced today that on October 28, 2026 its Board of Directors approved a quarterly cash dividend of $0.21 per common share. The dividend is payable on January 1, 2027 to shareholders of record at the close of business on December 15, 2026.
About Hawthorn Bancshares, Inc.
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 operates branch offices in central, southern, northwest Missouri, and also the Kansas City metropolitan area, including one branch in Kansas.
Contact:
Hawthorn Bancshares, Inc.
Brent M. Giles
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
www.HawthornBancshares.com
www.HawthornBancshares.com
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.