Hawthorn Bancshares (NASDAQ: HWBK) boosts Q1 profit and declares $0.21 dividend
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Hawthorn Bancshares reported strong first quarter 2026 results and announced a cash dividend. Net income was $6.8 million, up 25.9% from a year earlier, with diluted EPS rising to $0.98. Return on average assets was 1.49% and return on average equity was 15.41%, reflecting improved profitability.
Net interest income was $17.1 million and the net interest margin (FTE) improved to 4.07%, while the efficiency ratio strengthened to 60.46%. Loans were $1.45 billion and deposits $1.52 billion as of March 31, 2026, with non-performing assets at 0.47% of loans and the bank remaining well capitalized, including a total risk-based capital ratio of 15.91%.
The Board approved a quarterly cash dividend of $0.21 per common share, payable July 1, 2026 to shareholders of record on June 15, 2026, underscoring ongoing capital return to shareholders.
Positive
- Profitability improved materially: Q1 2026 net income rose to $6.8 million, up 25.9% year over year, with diluted EPS increasing to $0.98, and the efficiency ratio strengthening to 60.46%.
Negative
- None.
Insights
Hawthorn posts stronger Q1 earnings, maintains solid capital, and raises shareholder cash return via dividend.
Hawthorn Bancshares delivered a notable profitability improvement in Q1 2026. Net income reached $6.8M, up 25.9% year over year, with diluted EPS at $0.98. Key return metrics were healthy, with ROA at 1.49% and ROE at 15.41%, indicating efficient use of balance sheet and equity capital.
Core banking performance improved as net interest margin (FTE) rose to 4.07% and the efficiency ratio improved to 60.46%. Non-interest income also grew meaningfully, while non-interest expense was contained. Asset quality showed low absolute non-performing levels and modest net charge-offs, and capital ratios such as total risk-based capital at 15.91% confirm a well-capitalized position.
The Board’s approval of a $0.21 quarterly dividend per share, payable on July 1, 2026, signals confidence in earnings durability and capital strength. Investors can track upcoming Form 10-Q filings for finalized figures and any additional commentary around credit trends and balance sheet mix.
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, and exhibit attachments filed with this report.
Key Figures
Net income Q1 2026: $6.8M
Diluted EPS Q1 2026: $0.98
Quarterly dividend: $0.21 per share
+5 more
8 metrics
Net income Q1 2026
$6.8M
Quarter ended March 31, 2026; up 25.9% year over year
Diluted EPS Q1 2026
$0.98
Quarter ended March 31, 2026; up from $0.77 prior year
Quarterly dividend
$0.21 per share
Payable July 1, 2026 to shareholders of record June 15, 2026
Net interest margin (FTE)
4.07%
Quarter ended March 31, 2026; up from 3.67% prior-year quarter
Efficiency ratio
60.46%
Quarter ended March 31, 2026; improved vs. 66.64% prior-year quarter
Total assets
$1.86B
Total assets of $1,855,229,000 as of March 31, 2026
Total risk-based capital ratio
15.91%
Regulatory capital ratio at March 31, 2026; well capitalized
Non-performing assets to total loans
0.47%
Asset quality ratio at March 31, 2026
Key Terms
net interest margin (FTE), efficiency ratio, non-performing assets, allowance for credit losses, +1 more
5 terms
net interest margin (FTE) financial
"Net interest margin, on an FTE basis, was 4.07% for the current quarter"
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
"Non-performing assets to total loans was 0.47% at both March 31, 2026"
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, or 1.44% of outstanding loans"
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 financial
"Tier 1 leverage ratio | 12.40 | | | 12.12 | | | 11.64 |"
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.
Earnings Snapshot
Total interest income: $24.4M
Q1 2026
Total interest income
$24.4M
Up from $23.5M in prior-year quarter
Net interest income
$17.1M
Up from $15.3M in prior-year quarter
Net income
$6.8M
+25.9% year over year
Diluted EPS
$0.98
Up from $0.77 prior-year quarter
Net interest margin (FTE)
4.07%
Improved from 3.67% prior-year quarter
Efficiency ratio
60.46%
Improved from 66.64% prior-year quarter
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): April 29, 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 April 29, 2026, Hawthorn Bancshares, Inc. issued a press release announcing its financial results for the three months ended March 31, 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 April 29, 2026, Hawthorn Bancshares, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.21 per common share. The dividend is payable on July 1, 2026 to shareholders of record at the close of business on June 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 April 29, 2026, issued by Hawthorn Bancshares, Inc. announcing its financial results for the three months ended March 31, 2026 | ||||
| 99.2 | Press release, dated April 29, 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: April 29, 2026 | Hawthorn Bancshares, Inc. By: /s/ Brent M. Giles Name: Brent M. Giles Title: Chief Executive Officer | ||||||||||
3
Exhibit 99.1
Hawthorn Bancshares Reports First Quarter 2026 Results
Jefferson City, MO — April 29, 2026 — 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
1
(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.
2
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.
3
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]
4
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 | |||||||||||
5
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
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
www.HawthornBancshares.com
www.HawthornBancshares.com
6
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.
7
Exhibit 99.2
Hawthorn Bancshares Announces Cash Dividend
Jefferson City, MO. — April 29, 2026 — Hawthorn Bancshares, Inc. (NASDAQ: HWBK) announced today that its Board of Directors approved a quarterly cash dividend of $0.21 per common share. The dividend is payable on July 1, 2026 to shareholders of record at the close of business on June 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 has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton.
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.