Hawthorn Bancshares Reports $6.1 Million Net Income for Q3 2025, Up from $4.6 Million Last Year

Hawthorn Bancshares, Inc. reported a net income of $6.1 million, or $0.88 per diluted share, for the third quarter of 2025, marking a significant increase from $4.6 million, or $0.66 per diluted share, in the same period last year. For the nine months ending September 30, 2025, the company achieved a net income of $17.6 million, or $2.53 per diluted share, compared to $13.7 million, or $1.95 per diluted share, for the corresponding period in 2024. The return on average assets improved to 1.33% for the quarter and 1.30% for the nine months, while the return on average stockholders' equity rose to 15.21% and 15.13%, respectively.

Total assets for Hawthorn Bancshares increased to $1.93 billion as of September 30, 2025, up from $1.83 billion at the end of 2024. The growth in assets was primarily driven by a $47.8 million increase in loans held for investment, which reached $1.51 billion. However, total deposits decreased slightly by $7.3 million to $1.53 billion during the same period. The company’s allowance for credit losses was $21.9 million, representing 1.45% of total loans, a slight decrease from 1.50% at the end of 2024.

In terms of operational developments, Hawthorn Bancshares has made strategic moves to enhance its service offerings. The company has identified its Wealth Management business as a separate reporting segment, reflecting its commitment to expanding this area. The wealth management revenue increased by 54.3% in the third quarter compared to the previous year, indicating a successful strategic focus. Additionally, the company has initiated a stock repurchase program, allowing for the repurchase of up to $10 million of its common stock, with $8.7 million remaining available for future repurchases.

The company’s non-interest income for the third quarter was $3.7 million, a slight decrease from $3.8 million in the prior year, primarily due to lower gains on sales of mortgage loans. Non-interest expenses increased to $12.8 million from $12.0 million year-over-year, driven by higher salaries and occupancy costs associated with the opening of new branches. The efficiency ratio improved to 62.30% from 66.23%, reflecting better cost management relative to revenue generation.

Looking ahead, Hawthorn Bancshares remains focused on maintaining its capital adequacy and liquidity while navigating the evolving economic landscape. The company’s capital ratios indicate a well-capitalized status, with a total risk-based capital ratio of 14.90% as of September 30, 2025. Management is optimistic about future growth opportunities, particularly in its commercial banking and wealth management segments, while continuing to monitor market conditions and regulatory requirements.