Hawthorn Bancshares(HWBK) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $6.1 million, an increase of $1.6 million, or 34.1%, from Q3 2024, with EPS of $0.88, up 33% from the prior year quarter[5] - Total non-interest income for Q3 2025 was $3.7 million, a decrease of $0.1 million, or 1.8%, from the prior year quarter[13] - Total non-interest expense for Q3 2025 was $12.8 million, an increase of $0.6 million, or 4.5%, from the prior quarter[14] - Return on average assets for Q3 2025 was 1.33%, slightly down from 1.36% in Q2 2025 and up from 1.00% in Q3 2024[29] - Return on average common equity decreased to 15.21 in Q3 2025 from 15.85 in Q2 2025, compared to 12.87 in Q3 2024[29] Loan and Deposit Activity - Loans increased by $51.1 million, or 3.5%, to $1.51 billion compared to the prior quarter, and deposits rose by $7.9 million, or 0.5%[16][23] - Non-performing loans increased to $4,911,000 in Q3 2025 from $2,761,000 in Q2 2025, but decreased from $4,066,000 in Q3 2024[29] - Non-performing assets rose to $7,336,000 in Q3 2025 from $5,186,000 in Q2 2025, down from $8,451,000 in Q3 2024[29] Capital and Efficiency Ratios - The efficiency ratio improved to 62.30% in Q3 2025, compared to 66.23% in the prior year quarter[15] - The efficiency ratio remained stable at 62.30 in Q3 2025, compared to 62.32 in Q2 2025 and improved from 66.23 in Q3 2024[29] - Total risk-based capital ratio was 14.90 in Q3 2025, slightly down from 15.12 in Q2 2025 and stable compared to 14.91 in Q3 2024[29] - Tier 1 risk-based capital ratio decreased to 13.65 in Q3 2025 from 13.87 in Q2 2025, compared to 13.66 in Q3 2024[29] - Average stockholders' equity to average total assets increased to 8.74% in Q3 2025 from 8.56% in Q2 2025 and 7.80% in Q3 2024[29] - Allowance for credit losses to total loans was 1.45 in Q3 2025, down from 1.47 in Q2 2025 and 1.50 in Q3 2024[29] Shareholder Returns - The Company repurchased 90,466 common shares at an average cost of $27.72 per share, totaling $2.5 million, with $8.7 million remaining for share repurchases[25] - A quarterly cash dividend of $0.20 per common share was approved, payable on January 1, 2026[26] Interest Margin - Net interest margin improved to 3.97% in Q3 2025, compared to 3.89% in Q2 2025 and 3.36% in Q3 2024[10] - Net interest margin (FTE) improved to 3.97 in Q3 2025 from 3.89 in Q2 2025 and 3.36 in Q3 2024[29]