Hawthorn Bancshares (HWBK) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $6.1 million, up 31.8% year-over-year and 13.3% sequentially; six-month net income was $11.5 million, up from $9.1 million year-over-year.

• Diluted EPS increased to $0.88 for Q2 2025, a 33% rise from Q2 2024 and up from $0.77 in Q1 2025; six-month diluted EPS was $1.65, up from $1.29.

• Efficiency ratio improved to 62.3% for Q2 2025 from 66.2% in Q2 2024, reflecting better cost control.

• Return on average assets was 1.36% and return on average equity was 15.85% for Q2 2025.

• Non-interest income declined 11.3% year-over-year for Q2 2025, mainly due to lower gains on mortgage loan sales and real estate.

Financial highlights

• Net interest income for Q2 2025 was $16.1 million, up $2.0 million year-over-year; six-month net interest income was $31.4 million, up from $28.9 million.

• Net interest margin increased to 3.89% from 3.33% year-over-year and 3.67% in Q1 2025.

• Non-interest expense was $12.3 million for Q2 2025, up 2.0% year-over-year; six-month non-interest expense was $24.8 million, up 0.6%.

• Book value per share increased 14.3% year-over-year to $22.53.

• Total assets reached $1.88 billion at June 30, 2025, up from $1.83 billion at December 31, 2024.

Outlook and guidance

• Management expects the recently enacted One Big Beautiful Bill Act to have no material impact on future results.

• The company maintains a well-capitalized position and expects to continue paying quarterly dividends.

• Management remains focused on managing net interest margin and controlling expenses in a competitive market.

• Forward-looking statements caution that actual results may differ due to various risk factors.