Hawthorn Bancshares Reports Third Quarter 2025 Results

Core Viewpoint - Hawthorn Bancshares, Inc. reported strong third quarter 2025 results, highlighting core growth, margin expansion, and an increase in the loan portfolio, which reflects the company's strategic focus on enhancing shareholder value [3][6]. Financial Performance - The company achieved a net income of $6.1 million for Q3 2025, marking a 34.1% increase from Q3 2024, with earnings per diluted share (EPS) of $0.88, up from $0.66 in the prior year [6][7]. - Net interest income for Q3 2025 was $16.9 million, an increase of $2.5 million from the prior year quarter [9][10]. - The net interest margin improved to 3.97% in Q3 2025, compared to 3.36% in the prior year quarter [10][28]. Balance Sheet Highlights - Total assets reached $1.93 billion as of September 30, 2025, up from $1.81 billion a year earlier [4]. - Loans held for investment increased by $51.1 million, or 3.5%, to $1.51 billion compared to the prior quarter [16]. - Total deposits were $1.53 billion, reflecting a 0.5% increase from the previous quarter [23]. Asset Quality - Non-performing assets to total loans improved to 0.48% as of September 30, 2025, compared to 0.58% in the prior year quarter [19][28]. - The allowance for credit losses was $21.9 million, representing 1.45% of outstanding loans [22][29]. Capital Position - The company maintained a "well capitalized" status with a total risk-based capital ratio of 14.90% as of September 30, 2025 [24][29]. - Book value per share increased to $23.76, up 5.5% from the prior quarter and 13.6% from the prior year [6][28]. Non-Interest Income and Expenses - Total non-interest income for Q3 2025 was $3.7 million, a slight increase from the prior quarter but a decrease from the prior year quarter [13]. - Non-interest expenses rose to $12.8 million, reflecting a 6.9% increase from the prior year quarter, primarily due to higher salaries and employee benefits [14]. Shareholder Returns - The Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable on January 1, 2026 [26].