Hawthorn Bancshares, Inc. reported a net income of $6.1 million, or $0.88 per diluted share, for the quarter ending June 30, 2025, marking a 32% increase from $4.6 million, or $0.66 per diluted share, in the same period last year. For the first half of 2025, net income reached $11.5 million, or $1.65 per diluted share, compared to $9.1 million, or $1.29 per diluted share, in the first half of 2024. The company's return on average assets improved to 1.36% for the second quarter and 1.28% for the first half, up from 1.02% and 0.99%, respectively, in the prior year.
Total interest income for the second quarter was $23.9 million, a slight increase from $23.6 million in the same quarter of 2024. Net interest income rose to $16.1 million, up from $14.2 million year-over-year, driven by a higher net interest margin of 3.89%, compared to 3.33% in the previous year. Non-interest income, however, decreased to $3.5 million from $4.0 million, primarily due to lower gains on mortgage loan sales and other real estate owned.
On the balance sheet, total assets increased to $1.88 billion as of June 30, 2025, up from $1.83 billion at the end of 2024. Cash and cash equivalents rose significantly to $100.3 million, compared to $51.0 million at the end of the previous year. Loans held for investment decreased slightly to $1.46 billion, down from $1.47 billion at year-end 2024. The allowance for credit losses was $21.6 million, or 1.47% of total loans, compared to $22.0 million, or 1.50%, at the end of 2024.
In terms of strategic developments, Hawthorn Bancshares has initiated a new common stock repurchase program, allowing for the repurchase of up to $10 million of its common stock. The company repurchased 79,777 shares at an average cost of $27.62 per share during the first half of 2025. Additionally, the company has filed a universal shelf registration statement with the SEC, which became effective on July 2, 2025, allowing it to raise up to $150 million in various securities.
Looking ahead, the company remains focused on expanding its commercial banking services and enhancing its wealth management segment, which was recently established as a separate reporting segment. Management believes that maintaining adequate liquidity and capital levels will be crucial for navigating potential economic challenges and pursuing growth opportunities in the future.
About HAWTHORN BANCSHARES, INC.
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