Hawthorn Bancshares reported first‑quarter 2026 results that included net income of $6.8 million and earnings per share of $0.98, on top of $28.7 million in revenue. Net interest margin rose to 4.07% and the efficiency ratio improved to 60.46%, while risk‑based capital stood at 15.91% of risk‑weighted assets.
The earnings lift was driven by a $17.1 million net interest income and $4.4 million in non‑interest income, offset by a 2.2% decline in non‑interest expense to $13.0 million. Lower deposit costs and disciplined expense management helped expand the margin and reduce the efficiency ratio.
Quarter‑over‑quarter, net income grew 9.6% to $6.8 million, and year‑over‑year it increased 25.9% from $5.4 million. EPS rose 27% from $0.77 in Q1 2025. Net interest margin climbed from 4.03% in the prior quarter and from 3.67% a year earlier, while the efficiency ratio fell from 62.64% to 60.46%.
CEO Brent Giles noted the bank’s ability to sustain profitability amid a competitive deposit market and rising rates, and highlighted the potential expansion of its newly separated Wealth Management segment.
The bank declared a quarterly cash dividend of $0.21 per share, payable July 1, 2026, and repurchased 12,000 shares during the quarter, leaving $8 million under its repurchase authorization.
Credit quality remained stable, with non‑performing assets at 0.47% of total loans versus 0.21% a year earlier, and net charge‑offs of $0.06 million.
Revenue net of interest expense exceeded Street forecasts, underscoring stronger‑than‑expected performance in the bank’s core operations.
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