Hawthorn Bancshares Reports Second Quarter 2026 Results

Hawthorn Bancshares, Inc. (NASDAQ: HWBK) , (the “Company”), the bank holding company for Hawthorn Bank, reported second quarter 2026 net income of $7.3 million, or earnings per diluted share (“EPS”) of $1.06. Second Quarter 2026 Results Net income improved $1.2 million, or 20.1% , to $7.3 million from the second quarter 2025 (the "prior year quarter") and the efficiency ratio improved to 60.66% compared to 62.32% for the prior year quarter EPS of $1.06 , an improvement of $0.18 per share, or 20% , from the prior year quarter Net interest margin, fully taxable equivalent ("FTE") improved in the second quarter 2026 to 4.16% compared to 4.07% for the first quarter 2026 (the "prior quarter”) and 3.89% 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% and 16.39%, respectively Loans decreased $37.8 million, or 2.6%, and deposits decreased $30.1 million , or 2.0% , compared to the prior quarter Investments increased $25.4 million, or 12.0%, compared to the prior quarter Credit quality remained stable with non-performing assets to total loans of 0.53% compared to 0.35% 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 , or 4.2% , compared to the prior quarter and $3.97 , or 17.6% , compared to the prior year quarter (unaudited) $000, except per share data 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 $7.3 million, an increase of $1.58 million, or 27.6%, from the prior quarter, and an increase of $1.2 million, or 20.1%, from the prior year quarter. EPS improved to $1.06 for the second quarter 2026 compared to $0.83 for the prior quarter and $0.88 for the prior year quarter. Net Interest Income and Net Interest Margin Net interest income for the second quarter 2026 was $17.3 million, an increase of $0.2 million from the prior quarter, and an increase of $1.1 million from the prior year quarter. Interest income increased $0.4 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 4.16% for the current quarter, compared to 4.07% for the prior quarter, and 3.89% for the prior year quarter. The yield earned on average loans held for investment increased to 6.18%, on an FTE basis, for the second quarter 2026, compared to 6.11% for the prior quarter and 5.98% for the prior year quarter. The average cost of deposits was 2.13% for the second quarter 2026, compared to 2.15% for the prior quarter and 2.35% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 28.0% as of June 30, 2026, compared to 28.0% and 27.7% at March 31, 2026 and June 30, 2025, respectively. Non-interest Income Total non-interest income for the second quarter 2026 was $5.3 million, an increase of $2.2 million, or 72.1%, from the prior quarter, and an increase of $1.8 million, or 50.6%, from the prior year quarter. The increase during...