0000893847-26-000037
SEC filingHawthorn Bancshares, Inc. reported net income of $23.8 million for fiscal year 2025, with basic and diluted earnings per share of $3.00. The company generated $97.7 million in total interest income, primarily from interest and fees on loans ($88.4 million), and $14.3 million in non-interest income, resulting in net interest income of $65.9 million. Total assets stood at $1.89 billion, with net loans of $1.47 billion and total deposits of $1.55 billion. The company maintained strong liquidity with $104.3 million in cash and cash equivalents and generated $26.9 million in net cash from operating activities. Stockholders' equity was $174.2 million, representing a solid capital position. The company's performance was driven by core banking operations with stable deposit funding and disciplined expense management.
Hawthorn Bancshares, Inc. reported solid financial results for fiscal year 2025 with net income of $23.8 million and earnings per share of $3.00. The company generated $97.7 million in total interest income, with the majority coming from interest and fees on loans ($88.4 million). Net interest income was $65.9 million after $31.8 million in total interest expense. Non-interest income contributed $14.3 million, primarily from income from fees ($9.8 million) and earnings on bank-owned life insurance ($2.0 million). The company maintained disciplined expense management with total non-interest expense of $50.8 million, led by salaries and employee benefits ($27.8 million). Income before taxes was $29.1 million with income tax expense of $5.3 million.
The company's revenue is primarily derived from traditional banking activities. Interest income totaled $97.7 million, with $88.4 million from loans, $7.6 million from investment securities ($5.3 million taxable and $2.3 million nontaxable), $1.1 million from other interest-bearing deposits, and $421,000 from dividends on other investments. Non-interest income of $14.3 million included $9.8 million from fees, $2.0 million from bank-owned life insurance earnings, $448,000 from gains on mortgage loan sales, and $2.2 million from other sources. The company recorded minimal investment securities gains of $117,000. No segment or geographic breakdown was provided in the available data.
The company's net interest margin can be inferred from the relationship between net interest income ($65.9 million) and interest-earning assets, though specific margin percentages were not disclosed. Operating profitability was supported by the $65.9 million net interest income and $14.3 million non-interest income, offset by $50.8 million in non-interest expenses. The largest expense categories were salaries and employee benefits ($27.8 million), processing, network, and bank card expense ($5.7 million), and other expenses ($6.5 million). The provision for credit losses was modest at $360,000, indicating stable credit quality. The effective tax rate was approximately 18.2% based on $5.3 million tax expense on $29.1 million pre-tax income.
The company generated $26.9 million in net cash from operating activities, primarily from $23.8 million net income adjusted for non-cash items including $360,000 provision for credit losses and $2.2 million depreciation. Investing activities used $6.9 million net cash, with significant activity in available-for-sale debt securities ($20.6 million purchases, $39.0 million proceeds from maturities and calls) and FHLB stock transactions ($99.6 million purchases, $98.8 million sales). Financing activities provided $33.3 million net cash, driven by deposit changes ($38.5 million increase in demand deposits, partially offset by $19.3 million decrease in interest-bearing transaction accounts) and FHLB borrowing activity. The balance sheet shows total assets of $1.89 billion, with $1.47 billion in net loans, $209.9 million in available-for-sale securities, and $104.3 million in cash and equivalents. Total liabilities were $1.72 billion, including $1.55 billion in deposits and $151.6 million in borrowings. Stockholders' equity was $174.2 million.
The filing does not contain specific forward-looking guidance, management commentary, or risk factor disclosures in the provided content. The financial statements indicate a stable banking operation with consistent profitability, strong deposit funding, and adequate capital levels. The company appears focused on core banking activities with modest credit loss provisions and disciplined expense management. No strategic initiatives, growth targets, or specific risk factors were mentioned in the available document sections.