Hawthorn Bancshares Reports Results for the Fourth Quarter and the Year Ended December 31, 2025

Financial Performance - The company reported a fourth quarter 2025 net income of $6.2 million, or earnings per diluted share (EPS) of $0.90, representing a 0.86% increase from the previous quarter and a 34.5% increase from the fourth quarter of 2024 [4][5][8] - For the year ended December 31, 2025, net income was $23.8 million, or EPS of $3.43, an increase of $5.5 million, or 30.4%, from $18.3 million, or $2.61 per diluted share, in 2024 [5][8] Net Interest Income - Net interest income for the fourth quarter of 2025 was $17.6 million, a 4.2% increase from the prior quarter and a 14.6% increase from the fourth quarter of 2024 [6][8] - The net interest margin, on a fully taxable equivalent (FTE) basis, improved to 4.03% in the fourth quarter of 2025, compared to 3.97% in the prior quarter and 3.55% in the prior year quarter [7][8] Loans and Deposits - Loans held for investment decreased by $27.2 million, or 1.8%, to $1.49 billion as of December 31, 2025, compared to $1.51 billion at September 30, 2025, but increased by $20.6 million, or 1.4%, from $1.47 billion at the end of the prior year [18] - Total deposits increased by $28.2 million, or 1.9%, to $1.55 billion from $1.53 billion as of September 30, 2025, and increased by $21.0 million, or 1.4%, from $1.53 billion as of December 31, 2024 [25] Asset Quality - Non-performing assets totaled $7.0 million at December 31, 2025, a slight decrease from $7.3 million at September 30, 2025, and an increase from $4.2 million at December 31, 2024 [21] - The allowance for credit losses was $21.1 million, or 1.42% of outstanding loans, and represented 307.52% of non-performing loans as of December 31, 2025 [24] Capital Position - The company maintained a "well capitalized" regulatory capital position with total risk-based capital of 15.49% at the end of the year, compared to 14.79% at the end of the prior year [26] - The book value per share increased to $25.13, a rise of $3.77, or 17.6%, from $21.36 per share for the prior year [8][29] Dividends and Share Repurchase - The Board of Directors approved a quarterly cash dividend of $0.21 per common share, an increase of $0.01 per share, or 5%, from the previous quarterly dividend [28] - The company repurchased 100,358 common shares under its Repurchase Plan during 2025, with $8.4 million remaining available for future repurchases [27]