HWBK · Hawthorn Bancshares, Inc.

Hawthorn Bancshares, Inc. reported strong first quarter 2026 financial results, with net income increasing 25.9% year-over-year to $6.8 million, or $0.98 per diluted share. This performance was primarily driven by an expansion in net interest margin (NIM) and growth in non-interest income. The NIM improved to 4.07% for the quarter, up significantly from 3.67% in the prior year quarter, as the average cost of deposits decreased to 2.15% from 2.44%, more than offsetting a slight decline in the yield on average loans. Operational efficiency also showed marked improvement, with the efficiency ratio declining to 60.46% from 66.64% in the prior year quarter. Balance sheet activity reflected a slight contraction, with loans decreasing 2.2% and deposits decreasing 2.3% compared to the prior quarter. Asset quality metrics remained stable, with non-performing assets to total loans at 0.47%. The Company maintained a "well capitalized" regulatory status with a total risk-based capital ratio of 15.91%. Additionally, the Board of Directors declared a quarterly cash dividend of $0.21 per share, payable on July 1, 2026. During the quarter, the Company repurchased 12,000 shares, leaving $8.0 million remaining under its repurchase authorization.