HWBK

Shares of Hawthorn Bancshares, Inc. HWBK have gained 1.9% since the company reported results for the quarter ended June 30, 2026, underperforming the S&P 500 Index, which advanced 4.7% over the same period. Over the past month, however, the stock has risen 4.3%, outpacing the S&P 500's 2.5% gain. Hawthorn Bancshares reported second-quarter 2026 net income of $7.3 million, up 20.1% from $6.1 million in the year-ago quarter, while diluted earnings per share increased 20.5% to $1.06 from $0.88. Net interest income rose 6.9% year over year to $17.3 million, supported by higher asset yields and lower deposit costs. Non-interest income climbed 50.6% to $5.3 million, while non-interest expense increased 11.7% to $13.7 million. Loans held for investment declined year over year to $1.42 billion from $1.46 billion, investment securities increased year over year to $236.2 million from $229.4 million, and deposits slipped year over year to $1.49 billion from $1.52 billion. Stockholders’ equity increased to $182.8 million from $156.8 million a year ago. HWBK’s profitability improved as return on average assets increased to 1.63% from 1.36% a year earlier, while return on average common equity edged up to 16.39% from 15.85%. Net interest margin (NIM) on a fully taxable equivalent basis expanded to 4.16% from 3.89%, reflecting improved loan yields and lower funding costs. The efficiency ratio improved to 60.66% from 62.32%, indicating better operating efficiency despite higher expenses. Book value per share rose 17.6% year over year to $26.50, while Hawthorn Bancshares remained well capitalized with a total risk-based capital ratio of 16.40%. Hawthorn Bancshares, Inc. price-consensus-eps-surprise-chart | Hawthorn Bancshares, Inc. Quote Higher profitability was primarily driven by growth in net interest income and a sharp increase in non-interest income. Interest income increased as higher rates on earning assets lifted loan yields to 6.18% from 5.98% a year earlier, while average deposit costs declined to 2.13% from 2.35%. Non-interest income benefited from the recognition of a gain on the sale of a bank administrative office that was no longer in use. At the same time, non-interest expense increased due to higher operating costs, although stronger revenue growth more than offset the increase. Provision for credit losses totaled $0.2 million against a $0.1 million release in the prior-year quarter. Asset quality remained generally stable, although some metrics weakened modestly. Non-performing assets increased to $7.5 million from $5.2 million a year earlier, largely because of higher other real estate owned, while non-performing assets as a percentage of total loans rose to 0.53% from 0.35%. Net charge-offs remained low at $0.14 million, representing 0.04% of average loans on an annualized basis compared with 0.01% a year earlier. The allowance for credit losses was 1.46% of outstanding loans, broadly unchanged from 1.47% a year ago. Management highlighted improved profitability, stronger NIM and better operating efficiency during the quarter. Hawthorn Bancshares also emphasized that credit quality remained stable and noted that it continued to maintain a "well capitalized" regulatory position. Loan balances declined during the quarter, while investments increased, reflecting balance sheet repositioning. HWBK also reported continued strength in book value growth. HWBK did not provide financial guidance or outlook for future periods. Hawthorn Bancshares amended its share repurchase plan on July 29, 2026, increasing the authorized repurchase limit to $10 million. During the first six months of 2026, the company repurchased 12,000 common shares at an average price of $32.68 per share, with $8 million remaining under the authorization as of June 30. Separately, the board approved a quarterly cash dividend of $0.21 per common share, payable on Oct. 1, 2026, to shareholders of record as of Sept. 15. No acquisitions, divestitures or restructuring activities were reported during the quarter, apart from the sale of an unused administrative office that contributed to non-interest income. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawthorn Bancshares, Inc. (HWBK): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

JEFFERSON CITY, Mo., July 29, 2026 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported second quarter 2026 net income of $7.3 million, or earnings per diluted share (“EPS”) of $1.06. Second Quarter 2026 Results Net income improved $1.2 million, or 20.1%, to $7.3 million from the second quarter 2025 (the "prior year quarter") and the efficiency ratio improved to 60.66% compared to 62.32% for the prior year quarter EPS of $1.06, an improvement of $0.18 per share, or 20%, from the prior year quarter Net interest margin, fully taxable equivalent ("FTE") improved in the second quarter 2026 to 4.16% compared to 4.07% for the first quarter 2026 (the "prior quarter”) and 3.89% for the prior year quarter Provision for credit losses was $0.2 million higher than the prior quarter Return on average assets and equity of 1.63% and 16.39%, respectively Loans decreased $37.8 million, or 2.6%, and deposits decreased $30.1 million, or 2.0%, compared to the prior quarter Investments increased $25.4 million, or 12.0%, compared to the prior quarter Credit quality remained stable with non-performing assets to total loans of 0.53% compared to 0.35% in the prior year quarter Remained "well capitalized" with total risk-based capital of 16.40% Book value per share was $26.50, an increase of $1.07, or 4.2%, compared to the prior quarter and $3.97, or 17.6%, compared to the prior year quarter (unaudited)$000, except per share data Financial Results for the Second Quarter 2026 Earnings Net income for the second quarter 2026 was $7.3 million, an increase of $1.58 million, or 27.6%, from the prior quarter, and an increase of $1.2 million, or 20.1%, from the prior year quarter. EPS improved to $1.06 for the second quarter 2026 compared to $0.83 for the prior quarter and $0.88 for the prior year quarter. Net Interest Income and Net Interest Margin Net interest income for the second quarter 2026 was $17.3 million, an increase of $0.2 million from the prior quarter, and an increase of $1.1 million from the prior year quarter. Interest income increased $0.4 million compared to the prior year quarter, driven primarily by higher rates on earning assets in the current quarter, while interest expense decreased $0.7 million compared to the prior year quarter due to lower costs on deposits. Net interest margin, on an FTE basis, was 4.16% for the current quarter, compared to 4.07% for the prior quarter, and 3.89% for the prior year quarter. The yield earned on average loans held for investment increased to 6.18%, on an FTE basis, for the second quarter 2026, compared to 6.11% for the prior quarter and 5.98% for the prior year quarter. The average cost of deposits was 2.13% for the second quarter 2026, compared to 2.15% for the prior quarter and 2.35% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 28.0% as of June 30, 2026, compared to 28.0% and 27.7% at March 31, 2026 and June 30, 2025, respectively. Non-interest Income Total non-interest income for the second quarter 2026 was $5.3 million, an increase of $2.2 million, or 72.1%, from the prior quarter, and an increase of $1.8 million, or 50.6%, from the prior year quarter. The increase during the quarter was primarily due the recognition of a gain the sale of a bank administrative office that was no longer being used. Non-interest Expense Total non-interest expense for the second quarter 2026 was $13.7 million, an increase of $0.7 million, or 5.4%, from the prior quarter, and an increase of $1.4 million, or 11.7%, from the prior year quarter. The second quarter 2026 efficiency ratio was 60.66% compared to 64.29% and 62.32% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior year quarter was primarily due to higher net interest margin and an increase in non-interest income. Loans Loans held for investment decreased $37.8 million, or 2.6%, to $1.42 billion as of June 30, 2026 compared to March 31, 2026, and decreased $46.5 million, or 3.2% from June 30, 2025. Investments Investments increased $25.4 million, or 12.0%, to $236.2 million as of June 30, 2026 compared to March 31, 2026, and increased $6.8 million, or 3.0%, from June 30, 2025. Asset Quality Non-performing assets to total loans was 0.53% at June 30, 2026, 0.47% at December 31, 2025, and 0.35% at June 30, 2025. Non-performing assets totaled $7.5 million at June 30, 2026, compared to $6.9 million and $5.2 million at March 31, 2026 and June 30, 2025, respectively. The increase in the current year quarter compared to the prior year quarter was due to an increase in other real estate owned. In the second quarter 2026, the Company had net loan charge-offs of $0.14 million, or 0.04% annualized, of average loans, compared to net loan charge-offs of $0.06 million, or 0.02% of average loans, and $0.05 million, or 0.01% annualized, of average loans, in the prior quarter and prior year quarter, respectively. The Company provided a provision for credit losses of $0.2 million for the second quarter 2026 compared to providing a $0.1 million provision in the prior quarter, and releasing a $0.1 million provision for the prior year quarter. The allowance for credit losses at June 30, 2026 was $20.7 million, or 1.46% of outstanding loans, and 311.50% of non-performing loans. At March 31, 2026, the allowance for credit losses was $20.9 million, or 1.44% of outstanding loans, and 308.25% of non-performing loans. At June 30, 2025, the allowance for credit losses was $21.6 million, or 1.47% of outstanding loans, and 781.24% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of June 30, 2026 as determined by management. DepositsTotal deposits at June 30, 2026 were $1.49 billion, a decrease of $30.1 million, or 2.0%, from March 31, 2026, and a decrease of $29.8 million, or 2.0% annualized, from June 30, 2025. The decrease in deposits at June 30, 2026 as compared to June 30, 2025 was a result of decreases in savings, interest checking, money market accounts and time deposits. Capital The Company maintains its “well capitalized” regulatory capital position. At June 30, 2026, capital ratios were as follows: total risk-based capital to risk-weighted assets 16.40%; tier 1 capital to risk-weighted assets 15.15%; common equity tier 1 12.07%; tier 1 leverage 12.91%; and common equity to assets 10.31%. Pursuant to the Company's Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Board of Directors amended the plan on July 29, 2026 to increase the authorized repurchase limit to $10 million. The Company repurchased 12,000 common shares under the repurchase plan during the first six months of 2026 at an average cost of $32.68 per share totaling $0.4 million. As of June 30, 2026, $8.0 million remains available for share repurchases pursuant to the plan. On July 29, 2026, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per common share, payable October 1, 2026 to shareholders of record at the close of business on September 15, 2026. [Tables follow] FINANCIAL SUMMARY(unaudited)$000, except per share data FINANCIAL SUMMARY (continued)(unaudited)$000 (a) Non-performing loans include loans 90-days past due and accruing and non-accrual loans.(b) Annualized About Hawthorn BancsharesHawthorn Bancshares, Inc., a bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 160 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton. Contact: Hawthorn Bancshares, Inc.Brent M. Giles Chief Executive OfficerTEL: 573.761.6100www.HawthornBancshares.com The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company's or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

Shares of Hawthorn Bancshares, Inc. HWBK have lost 1.4% since the company reported results for the quarter ended March 31, 2026, against the S&P 500 Index’s 2.3% gain over the same period. Over the past month, however, the stock advanced 3.7%, trailing the S&P 500’s 10.8% increase. Hawthorn Bancshares reported first-quarter 2026 net income of $6.8 million, up 25.9% from $5.4 million in the year-ago quarter, while diluted earnings per share increased 27.3% to $0.98 from $0.77. Net interest income rose 11.8% year over year to $17.1 million from $15.3 million in the year-ago quarter, supported by improved asset yields and lower funding costs. HWBK’s efficiency ratio improved to 60.46% from 66.64% a year earlier. Total loans held for investment declined from $1.47 billion as of March 31, 2025, to $1.45 billion as of March 31, 2026, while deposits fell to $1.52 billion from $1.54 billion during the same time. Investment securities decreased year over year to $210.8 million from $226.6 million. Hawthorn Bancshares’ fully taxable equivalent (FTE) net interest margin (NIM) improved to 4.07% in the first quarter from 3.67% in the prior-year quarter and remained relatively stable compared with 4.03% in the fourth quarter of 2025. Management attributed the year-over-year increase in net interest income primarily to higher rates earned on earning assets and lower costs on deposits and borrowings. Interest income totaled $24.4 million, rising 3.9% from $23.5 million a year earlier, while interest expense declined 10.7% to $7.3 million from $8.2 million. The yield on average loans held for investment, on an FTE basis, improved to 6.11% from 5.89% in the prior-year quarter. Meanwhile, the average cost of deposits decreased to 2.15% from 2.44% a year ago, reflecting easing funding pressures. Non-interest-bearing demand deposits represented 28% of total deposits at quarter-end compared with 27.7% a year earlier. Hawthorn Bancshares, Inc. price-consensus-eps-surprise-chart | Hawthorn Bancshares, Inc. Quote Hawthorn Bancshares benefited from stronger fee-based revenue and controlled operating costs during the quarter. Non-interest income increased 21% sequentially and 25.3% year over year to $4.4 million from $3.5 million in the year-ago quarter. At the same time, non-interest expense declined 2.2% from the prior quarter and rose 3.7% to $12.9 million from $12.5 million in the prior-year period. The efficiency ratio improved year over year to 60.46% from 66.64%, aided by higher NIM and increased non-interest income. Return on average assets rose to 1.49% from 1.20% in the year-ago quarter, while return on average common equity improved to 15.41% from 14.29%. HWBK reported stable credit quality metrics during the quarter, although non-performing assets remained above year-ago levels. Non-performing assets to loans were 0.47% as of March 31, 2026, compared with 0.21% a year earlier. Non-performing assets totaled $6.9 million as of March 31, 2026, compared with $3.1 million as of March 31, 2025. Management said the increase from the prior-year quarter was mainly driven by higher non-accrual residential real estate loans, partly offset by lower other real estate owned. Net loan charge-offs were minimal at $0.06 million, or 0.02% annualized average loans, improving significantly from $1.1 million in the previous quarter. The provision for credit losses totaled $0.1 million compared with a $0.4 million provision in the prior quarter. The allowance for credit losses stood at $20.9 million as of March 31, 2026, representing 1.44% of total loans and 308.25% of non-performing loans. Hawthorn Bancshares maintained capital ratios above regulatory well-capitalized thresholds. The total risk-based capital ratio was 15.91% as of March 31, 2026, compared with 14.94% a year earlier. Common equity tier 1 capital ratio improved to 11.61% from 10.64%. Book value per share increased year over year to $25.58 from $21.97. HWBK also repurchased 12,000 common shares during the first three months of 2026 at an average cost of $32.68 per share, totaling $0.4 million. Approximately $8 million remained available under the repurchase authorization as of quarter-end. The board of directors approved a quarterly cash dividend of $0.21 per common share, payable on July 1, 2026, to shareholders of record as of June 15, 2026. HWBK did not disclose any acquisitions, divestitures or restructuring activities during the quarter. However, the company continued executing its existing share repurchase program, which was expanded in June 2025 to authorize up to $10 million in buybacks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawthorn Bancshares, Inc. (HWBK): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

JEFFERSON CITY, Mo., April 29, 2026 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported first quarter 2026 net income of $6.8 million, or earnings per diluted share (“EPS”) of $0.98. First Quarter 2026 Results Net income improved $1.4 million, or 25.9%, to $6.8 million from the first quarter 2025 (the "prior year quarter") and the efficiency ratio improved to 60.46% compared to 66.64% for the prior year quarter EPS of $0.98, an improvement of $0.21 per share, or 27%, from the prior year quarter Net interest margin, fully taxable equivalent ("FTE") remained consistent in the first quarter 2026 at 4.07% compared to 4.03% for the fourth quarter 2025 (the "prior quarter") and improved from 3.67% for the prior year quarter Provision for credit losses was $0.3 million lower than the prior quarter Return on average assets and equity of 1.49% and 15.41%, respectively Loans decreased $32.6 million, or 2.2%, and deposits decreased $35.8 million, or 2.3%, compared to the prior quarter Investments decreased $5.1 million, or 2.4%, compared to the prior quarter Credit quality remained stable with non-performing assets to total loans of 0.47% compared to 0.21% in the prior year quarter Remained "well capitalized" with total risk-based capital of 15.91% Book value per share was $25.58, an increase of $0.45, or 1.8%, compared to the prior quarter and $3.61, or 16.4%, compared to the prior year quarter (unaudited) $000, except per share data Financial Results for the First Quarter 2026 Earnings Net income for the first quarter 2026 was $6.8 million, an increase of $0.59 million, or 9.6%, from the prior quarter, and an increase of $1.4 million, or 25.9%, from the prior year quarter. EPS improved to $0.98 for the first quarter 2026 compared to $0.90 for the prior quarter and $0.77 for the prior year quarter. Net Interest Income and Net Interest Margin Net interest income for the first quarter 2026 was $17.1 million, a decrease of $0.5 million from the prior quarter, and an increase of $1.8 million from the prior year quarter. Interest income increased $0.9 million compared to the prior year quarter, driven primarily by higher rates on earning assets in the current quarter, while interest expense decreased $0.9 million compared to the prior year quarter due to lower costs on deposits and borrowings. Net interest margin, on an FTE basis, was 4.07% for the current quarter, compared to 4.03% for the prior quarter, and 3.67% for the prior year quarter. The yield earned on average loans held for investment decreased to 6.11%, on an FTE basis, for the first quarter 2026, compared to 6.13% for the prior quarter and 5.89% for the prior year quarter. The average cost of deposits was 2.15% for the first quarter 2026, compared to 2.23% for the prior quarter and 2.44% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 28.0% as of March 31, 2026, compared to 27.3% and 27.7% at December 31, 2025 and March 31, 2025, respectively. Non-interest Income Total non-interest income for the first quarter 2026 was $4.4 million, an increase of $0.8 million, or 21.0%, from the prior quarter, and an increase of $0.9 million, or 25.3%, from the prior year quarter. Non-interest Expense Total non-interest expense for the first quarter 2026 was $13.0 million, a decrease of $0.3 million, or 2.2%, from the prior quarter, and an increase of $0.5 million, or 3.7%, from the prior year quarter. The first quarter 2026 efficiency ratio was 60.46% compared to 62.64% and 66.64% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior year quarter was primarily due to higher net interest margin and an increase in non-interest income. Loans Loans held for investment decreased $32.6 million, or 2.2%, annualized, to $1.45 billion as of March 31, 2026 compared to December 31, 2025, and decreased $16.2 million, or 1.1% annualized, from March 31, 2025. Investments Investments decreased $5.1 million, or 2.4%, to $210.8 million as of March 31, 2026 compared to December 31, 2025, and decreased $15.8 million, or 7.0%, from March 31, 2025. Asset Quality Non-performing assets to total loans was 0.47% at both March 31, 2026, and December 31, 2025, compared to 0.21% at March 31, 2025. Non-performing assets totaled $6.9 million at March 31, 2026, compared to $7.0 million and $3.1 million at December 31, 2025 and March 31, 2025, respectively. The increase in the current year quarter compared to the prior year quarter was due to an increase in non-accrual loans in residential real estate offset by a reduction in other real estate owned. In the first quarter 2026, the Company had net loan charge-offs of $0.06 million, or 0.02% annualized, of average loans, compared to net loan charge-offs of $1.1 million, or 0.30% of average loans, and $0.02 million, or 0.005% annualized, of average loans, in the prior quarter and prior year quarter, respectively. The Company provided a provision for credit losses of $0.1 million for the first quarter 2026 compared to providing a $0.4 million provision in the prior quarter, and releasing a $0.3 million provision for the prior year quarter. The allowance for credit losses at March 31, 2026 was $20.9 million, or 1.44% of outstanding loans, and 308.25% of non-performing loans. At December 31, 2025, the allowance for credit losses was $21.1 million, or 1.42% of outstanding loans, and 307.52% of non-performing loans. At March 31, 2025, the allowance for credit losses was $21.8 million, or 1.48% of outstanding loans, and 885.01% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of March 31, 2026 as determined by management. Deposits Total deposits at March 31, 2026 were $1.52 billion, a decrease of $35.8 million, or 2.3%, from December 31, 2025, and a decrease of $25.6 million, or 1.7% annualized, from March 31, 2025. The decrease in deposits at March 31, 2026 as compared to March 31, 2025 was a result of decreases in savings, interest checking and money market accounts. Capital The Company maintains its “well capitalized” regulatory capital position. At March 31, 2026, capital ratios were as follows: total risk-based capital to risk-weighted assets 15.91%; tier 1 capital to risk-weighted assets 14.66%; common equity tier 1 11.61%; tier 1 leverage 12.40%; and common equity to assets 9.51%. Pursuant to the Company's Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Board of Directors amended the plan on June 3, 2025 to increase the authorized repurchase limit to $10 million. The Company repurchased 12,000 common shares under the repurchase plan during the first three months of 2026 at an average cost of $32.68 per share totaling $0.4 million. As of March 31, 2026, $8.0 million remains available for share repurchases pursuant to the plan. On April 29, 2026, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per common share, payable July 1, 2026 to shareholders of record at the close of business on June 15, 2026. [Tables follow] FINANCIAL SUMMARY (unaudited) $000, except per share data FINANCIAL SUMMARY (continued) (unaudited) $000 (a) Non-performing loans include loans 90-days past due and accruing and non-accrual loans (b) Annualized About Hawthorn Bancshares Hawthorn Bancshares, Inc., a bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 160 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton. Contact: Hawthorn Bancshares, Inc. Brent M. Giles Chief Executive Officer TEL: 573.761.6100 www.HawthornBancshares.com The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company's or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

Shares of Hawthorn Bancshares, Inc. HWBK have gained 8.7% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 Index’s 0.4% loss over the same time frame. Over the past month, the stock gained 4.8% compared with the S&P 500’s 0.9% growth. For the fourth quarter of 2025, Hawthorn Bancshares reported net income of $6.2 million, or $0.90 per diluted share, compared with $4.6 million, or $0.66 per diluted share, in the year-ago quarter, reflecting a 34.5% increase in net income and a 36.4% rise in earnings per share (EPS). On a full-year basis, net income rose to $23.8 million, or $3.43 per diluted share, from $18.3 million, or $2.61 per diluted share, in 2024, representing a 30.4% increase in net income and a 31.4% increase in EPS. Revenue performance was driven primarily by higher net interest income, which increased 14.6% year over year to $17.6 million in fourth-quarter 2025 from $15.3 million. HWBK does not report separate operating segments, as results are largely generated through its community banking operations, but balance sheet trends showed loans held for investment rising to $1.49 billion as of Dec. 31. 2025, from $1.47 billion as of Dec. 31, 2024, while deposits increased to $1.55 billion from $1.53 billion during the same time. Profitability metrics showed continued improvement compared with the prior year. Return on average assets was 1.33% in the fourth quarter, up from 1.00% in the year-ago period, while return on average equity improved to 14.47% from 12.49%. Net interest margin on a fully taxable equivalent basis expanded to 4.03% from 3.55% a year earlier, reflecting higher asset yields and lower funding costs. For the full year, net interest margin increased to 3.89% from 3.41% in 2024. The efficiency ratio for the full year improved by 451 basis points to 63.41% from 67.92%, indicating better cost management relative to revenue growth. For the full year, return on average assets rose to 1.30% from 1.00%, and return on average equity improved to 14.95% from 13.04%. Book value per share increased 17.6% to $25.13 as of Dec. 31, 2025, from $21.36 per share as of Dec. 31. 2024, supported by earnings growth and retained capital. Hawthorn Bancshares, Inc. price-consensus-eps-surprise-chart | Hawthorn Bancshares, Inc. Quote Management attributed the improvement in earnings primarily to stronger net interest income and margin expansion, supported by an increase in average interest-earning assets and a decline in interest expense. Interest income rose 5.7% year over year in the fourth quarter, while interest expense declined 10.2%, aided by a lower average cost of deposits, which fell to 2.23% from 2.49% in the prior-year quarter. Non-interest income remained relatively stable, increasing 1.8% year over year in the quarter, while non-interest expense rose 2.6%, largely due to higher salaries and employee benefits. Credit quality metrics were mixed during the quarter. Non-performing assets totaled $6.9 million as of Dec. 31, 2025, compared with $4.2 million a year earlier, though they declined modestly from the prior quarter. Net loan charge-offs increased to $1.1 million in the fourth quarter, or 0.30% of average loans, primarily due to a single commercial relationship that had been previously reserved for. Despite this, full-year net charge-offs declined to $1.2 million from $2.7 million in 2024. The allowance for credit losses remained at 1.42% of outstanding loans as of Dec. 31, 2025, and management noted that reserve levels were commensurate with portfolio risks. Hawthorn Bancshares did not provide formal earnings guidance. However, management highlighted its continued “well capitalized” regulatory position, with a total risk-based capital ratio of 15.49% at year-end, up from 14.79% a year earlier. Capital strength supported ongoing shareholder returns, including share repurchases and a higher dividend. During 2025, Hawthorn Bancshares repurchased 100,358 common shares under its existing repurchase plan, with $8.4 million remaining available for future buybacks as of Dec. 31, 2025. Subsequent to quarter-end, on Jan. 28, 2026, the board approved a quarterly cash dividend of $0.21 per common share, representing a 5% increase from the prior dividend and payable on April 1, 2026. No acquisitions, divestitures, or major restructuring activities were reported for the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawthorn Bancshares, Inc. (HWBK): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

JEFFERSON CITY, Mo., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the "Company"), the holding company for Hawthorn Bank, reported fourth quarter 2025 net income of $6.2 million, or earnings per diluted share ("EPS") of $0.90, and net income of $23.8 million, or EPS of $3.43, for the year ended December 31, 2025. Fourth Quarter 2025 Results Net income of $6.2 million, or $0.90 per diluted share, which improved from $6.1 million, or $0.88 per diluted share, for the third quarter 2025 (the "prior quarter"). Net interest margin, fully taxable equivalent ("FTE"), improved in the fourth quarter of 2025 to 4.03% compared to 3.97% for the prior quarter. Return on average assets and equity of 1.33% and 14.47%, respectively, compared to 1.33% and 15.21%, respectively, for the prior quarter and 1.00% and 12.49%, respectively, for the fourth quarter 2024 (the "prior year quarter"). Loans decreased $27.2 million, or 1.8%, to $1.49 billion from $1.51 billion at September 30, 2025. Deposits increased $28.2 million, or 1.9%, to $1.55 billion from $1.53 billion at September 30, 2025. 2025 Results Net income of $23.8 million, or $3.43 per diluted share, which improved $5.5 million, or 30.4%, from $18.3 million, or $2.61 per diluted share, for 2024 (the "prior year"), an increase of $0.82 per diluted share, or 31.4%. Net interest margin, FTE, of 3.89% compared to 3.41% for the prior year. Return on average assets and equity of 1.30% and 14.95%, respectively, compared to 1.00% and 13.04%, respectively, for the prior year. Efficiency ratio of 63.41%, an improvement of 451 basis points from 67.92% for the prior year. Loans increased $20.6 million, or 1.4%, to $1.49 billion from $1.47 billion at the end of the prior year. Deposits increased $21.0 million, or 1.4%, to $1.55 billion from $1.53 billion at the end of the prior year. Book value of $25.13 per share, an increase of $3.77, or 17.6% per share, from $21.36 per share for the prior year. Remained "well capitalized" 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. Financial Results for the Quarter and the Year Ended December 31, 2025 Earnings Net income increased $0.1 million, or 0.86%, to $6.2 million, or $0.90 per diluted share, for the fourth quarter 2025 compared to $6.1 million, or $0.88 per diluted share, for the prior quarter. Net income increased $1.6 million, or 34.5%, from $4.6 million, or $0.66 per diluted share, in the fourth quarter 2024 (the "prior year quarter"). Net income for 2025 was $23.8 million, or $3.43 per diluted share, compared to net income of $18.3 million, or $2.61 per diluted share, for the prior year, an increase of $0.82 per diluted share, or 31.4%. Net interest income Net interest income was $17.6 million for the fourth quarter of 2025, which increased $0.7 million, or 4.2%, from the prior quarter total of $16.9 million, and increased $2.2 million, or 14.6%, from the prior year quarter total of $15.3 million. Interest income increased $0.3 million, or 1.1%, to $25.3 million for the current quarter from $25.0 million in the prior quarter, and increased $1.4 million, or 5.7%, in the current quarter from $23.9 million for the prior year quarter, driven primarily by an increase in average interest earning assets. Interest expense was $7.7 million for the current quarter, which decreased $0.4 million, or 5.3%, from $8.1 million for the prior quarter, and decreased $0.9 million, or 10.2%, from $8.6 million in the prior year quarter. Net interest margin, on an FTE basis, was 4.03% for the fourth quarter, compared to 3.97% for the prior quarter, and 3.55% for the prior year quarter. The yield earned on average loans held for investment was 6.13%, on an FTE basis, for the fourth quarter 2025, compared to 6.12% for the prior quarter and 5.86% for the prior year quarter. The average cost of deposits was 2.23% for the fourth quarter 2025, compared to 2.36% for the prior quarter and 2.49% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 27.3% as of December 31, 2025, compared to 27.8% and 25.1% at September 30, 2025 and December 31, 2024, respectively. Net interest income for 2025 was $65.9 million and net interest margin was 3.89%, on an FTE basis, compared to net interest income of $58.6 million and net interest margin of 3.41%, on an FTE basis, for the prior year. Interest income increased $2.3 million, or 2.4%, to $97.7 million for the current year compared to $95.4 million for the prior year. Interest expense decreased $5.0 million, or 13.5%, to $31.8 million for the current year compared to $36.8 million for the prior year. The yield earned on average loans increased to 6.03%, on an FTE basis, for the current year compared to 5.80%, on an FTE basis, for the prior year. The yield on investment securities was 3.81% for the current year compared to 3.36% for the prior year. The average cost of deposits was 2.35% for the current year compared to 2.63% for the prior year. Non-interest Income Total non-interest income for the fourth quarter of 2025 was $3.6 million, a decrease of $0.1 million, or 3.5%, from $3.7 million for the prior quarter, and an increase of $0.1 million, or 1.8%, from $3.5 million for the prior year quarter. Total non-interest income was $14.3 million for both the current year and the prior year. Non-interest Expense Non-interest expense for the fourth quarter of 2025 was $13.3 million, an increase of $0.4 million, or 3.4%, from $12.8 million for the prior quarter, which was primarily due to an increase in other non-interest expense. Other non-interest expense was $1.9 million for the fourth quarter of 2025, an increase of $0.4 million, or 25%, from $1.5 million for the prior quarter. Non-interest expense increased $0.3 million, or 2.6%, from $12.9 million for the prior year quarter, which was driven primarily by an increase of $0.4 million, or 6.6%, in salaries and benefits to $7.0 million for the fourth quarter of 2025 compared to $6.6 million for the prior year quarter. Non-interest expense for 2025 was $50.8 million, an increase of $1.3 million, or 2.7%, from $49.5 million in the prior year. Salaries and employee benefits increased $1.3 million, or 4.8%, to $27.8 million for the current year compared to the prior year. Efficiency Ratio The fourth quarter efficiency ratio was 62.64% compared to 62.30% and 68.48% for the prior quarter and prior year quarter, respectively. The efficiency ratio for the year was 63.41% compared to 67.92% for the prior year, an improvement of 451 basis points. Loans Loans held for investment decreased by $27.2 million, or 1.80%, to $1.49 billion as of December 31, 2025 compared to $1.51 billion as of September 30, 2025 and increased by $20.6 million, or 1.4%, from $1.47 billion as of December 31, 2024. Investments Investment securities decreased by $10.1 million, or 4.5%, to $215.9 million as of December 31, 2025 compared to $226.0 million as of September 30, 2025 and decreased by $7.9 million, or 3.5%, from $223.8 million as of December 31, 2024. Asset Quality Non-performing assets totaled $7.0 million at December 31, 2025, compared to $7.3 million and $4.2 million at September 30, 2025 and December 31, 2024, respectively. Non-performing assets to total loans was 0.47% at December 31, 2025, compared to 0.48% and 0.29% at September 30, 2025 and December 31, 2024, respectively. In the fourth quarter of 2025, the Company had net loan charge-offs of $1.1 million, or 0.30% of average loans, compared to net loan charge-offs of $41,000, or 0.01% of average loans, and $43,000, or 0% of average loans, in the prior quarter and the prior year quarter, respectively. The increase was primarily due to a charge-off of one commercial relationship that had been reserved for in a prior period. The Company recognized provision for credit losses on loans and unfunded commitments of $0.4 million for both the fourth quarter of 2025 and prior quarter and $0.3 million for the prior year quarter. For 2025, the Company had net loan charge-offs of $1.2 million, or 0.08% of average loans, compared to $2.7 million, or 0.18% of average loans, for 2024. For 2025, the Company recognized a provision for credit losses on loans and unfunded commitments of $0.4 million compared to $1.0 million for 2024. The allowance for credit losses at December 31, 2025 was $21.1 million, or 1.42% of outstanding loans, and 307.52% of non-performing loans. At September 30, 2025, the allowance for credit losses was $21.9 million, or 1.45% of outstanding loans, and 446.02% of non-performing loans. At December 31, 2024, the allowance for credit losses was $22.0 million, or 1.50% of outstanding loans, and 802.48% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of December 31, 2025. Deposits Total deposits at December 31, 2025 were $1.55 billion, an increase of $28.2 million, or 1.9%, from $1.53 billion as of September 30, 2025, and an increase of $21.0 million, or 1.4%, from $1.53 billion as of December 31, 2024. Capital The Company maintains its “well capitalized” regulatory capital position. At December 31, 2025, capital ratios were as follows: total risk-based capital to risk-weighted assets 15.49%, tier 1 capital to risk-weighted assets 14.24%, tier 1 leverage 12.12%, and common equity to assets 9.19%. Pursuant to the Company's Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Company repurchased 100,358 common shares under the Repurchase Plan during 2025. As of December 31, 2025, $8.4 million remained available for share repurchases pursuant to the Repurchase Plan. On January 28, 2026, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per common share, an increase of $0.01 per common share, or 5%, from the previous quarterly dividend. The dividend is payable on April 1, 2026 to shareholders of record at the close of business on March 15, 2026. [Tables follow] (1) Non-performing loans include loans 90 days past due and accruing and non-accrual loans. About Hawthorn Bancshares Hawthorn Bancshares, Inc., a bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 160 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton. Contact: Hawthorn Bancshares, Inc. Brent M. Giles Chief Executive Officer TEL: 573.761.6100 www.HawthornBancshares.com The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Annual Report on Form 10-K is filed. Statements made in this press release that suggest Hawthorn Bancshares' or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.

JEFFERSON CITY, Mo., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported third quarter 2025 net income of $6.1 million, or earnings per diluted share (“EPS”) of $0.88. Third Quarter 2025 Results Net income improved $1.6 million, or 34.1%, to $6.1 million from the third quarter 2024 (the "prior year quarter") and the efficiency ratio improved to 62.30% compared to 66.23% for the prior year quarter EPS of $0.88, an improvement of $0.22 per share, or 33%, from the prior year quarter Net interest margin, fully taxable equivalent ("FTE") improved in the third quarter 2025 to 3.97% compared to 3.89% for second quarter 2025 (the "prior quarter”) and 3.36% for the prior year quarter Provision for credit losses was $0.4 million higher than the prior quarter and $0.1 million lower than the prior year quarter Return on average assets and equity of 1.33% and 15.21%, respectively Loans increased $51.1 million, or 3.5%, and deposits increased $7.9 million, or 0.5%, compared to the prior quarter Investments decreased $3.4 million, or 1.5%, compared to the prior quarter Credit quality remained strong with non-performing assets to total loans of 0.48% improving from 0.58% in the prior year quarter Remained well capitalized with total risk-based capital of 14.90% Book value per share was $23.76, an increase of $1.23, or 5.5%, compared to the prior quarter and $2.85, or 13.6%, compared to the prior year quarter Brent Giles, Chief Executive Officer of Hawthorn Bancshares, Inc. commented, “I am pleased with our third quarter results as they reflect continued core growth. Our margin continued to expand, and we experienced growth in our wealth management group. Additionally, we were able to grow our loan portfolio by expanding our customer relationships and attracting new customers. The third quarter results reflect our focus on our strategic objectives which continues to create shareholder value." (unaudited) $000, except per share data Financial Results for the Third Quarter 2025 Earnings Net income for the third quarter 2025 was $6.1 million, an increase of $0.03 million, or 0.5%, from the prior quarter, and an increase of $1.6 million, or 34.1%, from the prior year quarter. EPS was unchanged at $0.88 for the third quarter 2025 compared to the prior quarter and improved from $0.66 for the prior year quarter. Net income for the nine months ended September 30, 2025 was $17.6 million, or $2.53 per diluted share, an increase of $4.0 million compared to $13.7 million, or $1.95 per diluted share, for the nine months ended September 30, 2024. Net Interest Income and Net Interest Margin Net interest income for the third quarter 2025 was $16.9 million, an increase of $0.7 million from the prior quarter, and an increase of $2.5 million from the prior year quarter. Net interest income for the nine months ended September 30, 2025 was $48.3 million, an increase of $5.1 million compared to $43.2 million for the nine months ended September 30, 2024. Interest income increased $1.2 million in the current quarter compared to the prior year quarter, driven primarily by higher rates on earning assets, while interest expense decreased $1.4 million compared to the prior year quarter due to lower costs on deposits. Net interest margin, on an FTE basis, was 3.97% for the current quarter, compared to 3.89% for the prior quarter, and 3.36% for the prior year quarter. The yield earned on average loans held for investment increased to 6.12%, on an FTE basis, for the third quarter 2025, compared to 5.98% for the prior quarter and 5.83% for the prior year quarter. The average cost of deposits was 2.36% for the third quarter 2025, compared to 2.35% for the prior quarter and 2.74% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 27.8% as of September 30, 2025, compared to 27.7% and 26.0% at June 30, 2025 and September 30, 2024, respectively. Non-interest Income Total non-interest income for the third quarter 2025 was $3.7 million, an increase of $0.2 million, or 4.8%, from the prior quarter, and a decrease of $0.1 million, or 1.8%, from the prior year quarter. Non-interest income for the nine months ended September 30, 2025 was $10.7 million, a decrease of $0.1 million from the nine months ended September 30, 2024. Non-interest Expense Total non-interest expense for the third quarter 2025 was $12.8 million, an increase of $0.6 million, or 4.5%, from the prior quarter, and an increase of $0.8 million, or 6.9%, from the prior year quarter. For the nine months ended September 30, 2025, non-interest expense was $37.6 million, an increase of $1.0 million as compared to $36.6 million for the nine months ended September 30, 2024, which was primarily attributable to an increase in salaries and employee benefits. The third quarter 2025 efficiency ratio was 62.30% compared to 62.32% and 66.23% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior year quarter was primarily due to higher net interest margin. Loans Loans held for investment increased $51.1 million, or 3.5%, to $1.51 billion as of September 30, 2025 compared to June 30, 2025, and increased $47.3 million, or 3.2% annualized, from September 30, 2024. Investments Investments decreased $3.4 million, or 1.5%, to $226.0 million as of September 30, 2025 compared to June 30, 2025, and increased $17.0 million, or 8.1%, from September 30, 2024. Asset Quality Non-performing assets to total loans was 0.48% at September 30, 2025, compared to 0.35% and 0.58% at June 30, 2025 and September 30, 2024, respectively. Non-performing assets totaled $7.3 million at September 30, 2025, compared to $5.2 million and $8.5 million at June 30, 2025 and September 30, 2024, respectively. The increase in non-performing assets during quarter compared to the prior quarter was due to the movement of one commercial relationship to non-accrual status. In the third quarter 2025, the Company had net loan charge-offs of $0.04 million, or 0.01% annualized, of average loans, compared to net loan charge-offs of $0.05 million, or 0.01% of average loans, and $0.6 million, or 0.17% annualized, of average loans, in the prior quarter and prior year quarter, respectively. The Company provided provision for credit losses of $0.4 million for the third quarter 2025 compared to releasing provision of $0.1 million in the prior quarter, and providing provision of $0.5 million for the prior year quarter. The allowance for credit losses at September 30, 2025 was $21.9 million, or 1.45% of outstanding loans, and 446.02% of non-performing loans. At June 30, 2025, the allowance for credit losses was $21.6 million, or 1.47% of outstanding loans, and 781.24% of non-performing loans. At September 30, 2024, the allowance for credit losses was $21.9 million, or 1.50% of outstanding loans, and 539.52% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of September 30, 2025 as determined by management. Deposits Total deposits at September 30, 2025 were $1.53 billion, an increase of $7.9 million, or 0.5%, from June 30, 2025, and an increase of $22.4 million, or 1.5% annualized, from September 30, 2024. The increase in deposits at September 30, 2025 as compared to September 30, 2024 was primarily a result of increases in non-interest bearing demand deposits and other time deposits offset by decreases in savings, interest checking and money market accounts and time deposits $250,000 and over. Capital The Company maintains its “well capitalized” regulatory capital position. At September 30, 2025, capital ratios were as follows: total risk-based capital to risk-weighted assets 14.90%; tier 1 capital to risk-weighted assets 13.65%; common equity tier 1 10.71%; tier 1 leverage 11.97%; and common equity to assets 8.54%. Pursuant to the Company's Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Board Directors amended the plan on June 3, 2025 and approved increasing the authorized repurchase limit to $10 million. The Company repurchased 90,466 common shares under the repurchase plan during the first nine months of 2025 at an average cost of $27.72 per share totaling $2.5 million. As of September 30, 2025, $8.7 million remains available for share repurchases pursuant to the plan. On October 29, 2025, the Company's Board of Directors approved a quarterly cash dividend of $0.20 per common share, payable January 1, 2026 to shareholders of record at the close of business on December 15, 2025. [Tables follow] FINANCIAL SUMMARY (unaudited) $000, except per share data FINANCIAL SUMMARY (continued) (unaudited) $000 (a) Non-performing loans include loans 90-days past due and accruing and non-accrual loans. (b) Annualized About Hawthorn Bancshares Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 160 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton. Contact: Hawthorn Bancshares, Inc. Brent M. Giles Chief Executive Officer TEL: 573.761.6100 www.HawthornBancshares.com The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company's or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.