HAWTHORN BANCSHARES, INC. (HWBK) Earnings History

HAWTHORN BANCSHARES, INC. - Q4 FY2025 Earnings

Filed at: Jan 28, 2026, 4:36 PM EST|Read from source

EXECUTIVE SUMMARY

Hawthorn Bancshares reported a solid fourth quarter and full year 2025, demonstrating improved profitability and capital strength. The company saw growth in net interest income and a reduction in interest expense, contributing to higher net interest margins and overall net income, while maintaining a strong capital position.

POSITIVE HIGHLIGHTS

  • •

    Full year 2025 net income increased 30.4% to $23.8 million, or $3.43 per diluted share, up from $18.3 million, or $2.61 per diluted share, in 2024.

    positive
  • •

    Fourth quarter 2025 net interest margin (FTE) improved to 4.03% compared to 3.55% in the prior year quarter.

    positive
  • •

    Efficiency ratio improved to 63.41% for the full year 2025, a 451 basis point improvement from 67.92% in the prior year.

    positive
  • •

    Book value per share increased 17.6% to $25.13 from $21.36 in the prior year.

    positive
  • •

    The company maintained its "well capitalized" regulatory status with strong capital ratios.

    positive

CONCERNS & RISKS

  • •

    Loans held for investment decreased 1.80% in the fourth quarter of 2025 to $1.49 billion from $1.51 billion at the end of the prior quarter.

    attention
  • •

    Net charge-offs in the fourth quarter of 2025 were $1.1 million, or 0.30% of average loans, a significant increase from $41,000, or 0.01% of average loans, in the prior quarter.

    attention
  • •

    Non-performing assets increased to $7.0 million at December 31, 2025, compared to $4.2 million at December 31, 2024.

    attention
  • •

    Non-interest income remained flat year-over-year at $14.3 million for the full year 2025.

    neutral

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Annual (YTD)
$97.66B
N/A
Prior year: $95.35B
Net Income
Quarterly
$6.18M
+34.5%
Prior year: $4.60M
Annual (YTD)
$23.80M
N/A
Prior year: $18.26M
EPS (Diluted)
Quarterly
$0.90
+36.4%
Prior year: $0.66
Annual (YTD)
$3.43
N/A
Prior year: $2.61
Operating Income
Quarterly
$7.54M
+33.5%
Prior year: $5.65M
Annual (YTD)
$29.10M
N/A
Prior year: $22.36M
EPS (Basic)
Quarterly
$0.90
+36.4%
Prior year: $0.66
Annual (YTD)
$3.44
N/A
Prior year: $2.61

MARGIN ANALYSIS

Operating Margin
Current Quarter
7.7%
Prior Year
5.8%
YoY Change
+195 bps
Net Margin
Current Quarter
6.3%
Prior Year
4.8%
YoY Change
+151 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT COMMENTARY

Net income for 2025 was $23.8 million, or $3.43 per diluted share, compared to net income of $18.3 million, or $2.61 per diluted share, for the prior year, an increase of $0.82 per diluted share, or 31.4%.

— HAWTHORN BANCSHARES, INC., Q4 FY2025 2025 Earnings Call

Net interest margin, FTE, of 3.89% compared to 3.41% for the prior year.

— HAWTHORN BANCSHARES, INC., Q4 FY2025 2025 Earnings Call

Efficiency ratio of 63.41%, an improvement of 451 basis points from 67.92% for the prior year.

— HAWTHORN BANCSHARES, INC., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Allowance For Credit Losses To Total Loans
1.4
-5.3% YoY
Prior year: 1.5
Efficiency Ratio
62.6
-8.5% YoY
Prior year: 68.5
Net Charge Offs To Average Loans
0.3
Net Interest Margin Fte
4.0
+13.5% YoY
Prior year: 3.5
Non Performing Assets
7.0M
+66.1% YoY
Prior year: 4.2M
Non Performing Loans
6.9M
+150.0% YoY
Prior year: 2.7M
Return On Average Assets
1.3
+33.0% YoY
Prior year: 1
Return On Average Common Equity
14.5
+15.8% YoY
Prior year: 12.5

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.