Hawthorn Bancshares (HWBK) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $6.1 million ($0.88 per diluted share), up 34.1% year-over-year and 0.5% sequentially; nine-month net income was $17.6 million ($2.53 per share), up from $13.7 million ($1.95 per share) year-over-year.

• Return on average assets was 1.33% for Q3 2025 and 1.30% for the nine months; return on equity was 15.21% and 15.13%, respectively.

• Total assets reached $1.93 billion as of September 30, 2025.

• Loans grew 3.5% sequentially to $1.51 billion; deposits increased 0.5% to $1.53 billion.

• Book value per share increased 5.5% sequentially and 13.6% year-over-year to $23.76.

Financial highlights

• Net interest income for Q3 2025 was $16.9 million, up 17.8% year-over-year and $0.7 million sequentially; nine-month net interest income was $48.3 million, up 11.7%.

• Net interest margin (FTE) increased to 3.97% for Q3 2025 from 3.36% in Q3 2024 and 3.89% in the prior quarter.

• Non-interest income was $3.7 million for Q3 2025, up 4.8% sequentially but nearly flat year-over-year; nine-month non-interest income was $10.7 million.

• Non-interest expense rose 4.5% sequentially and 6.9% year-over-year to $12.8 million, mainly due to higher salaries and benefits.

• Efficiency ratio improved to 62.3% for Q3 2025 from 66.2% in Q3 2024.

Outlook and guidance

• Management expects continued focus on commercial banking, mortgage lending, and wealth management growth, with a strategic focus on shareholder value.

• The company maintains a well-capitalized position and expects to continue paying quarterly dividends, with a $0.20 per share dividend approved for January 1, 2026.