Hawthorn Bancshares(HWBK) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 net income was $6.2 million, or $0.90 per diluted share, an increase from $6.1 million, or $0.88 per diluted share in the prior quarter[6] - For the year ended December 31, 2025, net income was $23.8 million, or $3.43 per diluted share, representing a 30.4% increase from $18.3 million, or $2.61 per diluted share in 2024[8] - Diluted earnings per share for the year ended December 31, 2025, rose to $3.43, a 31.5% increase compared to $2.61 in 2024[35] Income and Expenses - Net interest income for the year ended December 31, 2025, increased to $65,880, up 12.0% from $58,593 in 2024[35] - Non-interest income for Q4 2025 was $3.6 million, a decrease of 3.5% from the prior quarter but an increase of 1.8% from the prior year quarter[16] - Non-interest income for the year ended December 31, 2025, was $14,309, slightly down from $14,320 in 2024[35] - Non-interest expense for Q4 2025 was $13.3 million, an increase of 3.4% from the prior quarter, primarily due to higher other non-interest expenses[18] Asset and Liability Management - Total deposits increased by $28.2 million, or 1.9%, to $1.55 billion from $1.53 billion at September 30, 2025[29] - Loans decreased by $27.2 million, or 1.8%, to $1.49 billion from $1.51 billion at September 30, 2025, but increased by $20.6 million, or 1.4%, from $1.47 billion at the end of 2024[23] - Total assets as of December 31, 2025, were $1,894,850, a decrease of 1.4% from $1,932,105 as of September 30, 2025[34] Credit Quality - The allowance for credit losses at December 31, 2025 was $21.1 million, or 1.42% of outstanding loans, and 307.52% of non-performing loans[28] - The provision for credit losses for the year ended December 31, 2025, decreased to $360 from $1,027 in 2024[35] - Non-performing loans increased to $6,865 as of December 31, 2025, compared to $4,911 as of September 30, 2025[35] Efficiency and Capital Ratios - The efficiency ratio for the year improved to 63.41%, a decrease of 451 basis points from 67.92% in the prior year[22] - The efficiency ratio for the three months ended December 31, 2025, improved to 62.64% from 62.30% in the previous quarter[35] - Total risk-based capital ratio as of December 31, 2025, was 15.49%, an increase from 14.90% as of September 30, 2025[35] Shareholder Actions - The Company repurchased 100,358 common shares under its Repurchase Plan during 2025, with $8.4 million remaining available for future repurchases[31] Interest Income - Total interest income for the three months ended December 31, 2025, was $25,286, up from $25,003 in the previous quarter[34] - Net interest margin improved to 4.03% in Q4 2025 from 3.97% in the prior quarter and 3.55% in the prior year quarter[10] Return Metrics - Return on average assets for the three months ended December 31, 2025, was 1.33%, consistent with the previous quarter[35]