Hawthorn Bancshares, Inc. reported a consolidated net income of $5.4 million, or $0.77 per diluted share, for the first quarter of 2025, reflecting a 20.8% increase from the $4.5 million, or $0.63 per diluted share, recorded in the same period of 2024. The company's net interest income rose to $15.3 million, up from $14.7 million year-over-year, while the net interest margin improved to 3.67% from 3.39%. Non-interest income also saw an increase, totaling $3.5 million compared to $3.0 million in the prior year, driven primarily by earnings on bank-owned life insurance and wealth management revenue.
In terms of balance sheet performance, total assets increased to $1.88 billion as of March 31, 2025, up from $1.83 billion at the end of 2024. Loans held for investment slightly increased to $1.47 billion, while total deposits rose to $1.54 billion, marking a $10.7 million increase from the previous quarter. The allowance for credit losses was $21.8 million, representing 1.48% of total loans, a slight decrease from 1.50% at the end of 2024. The company reported a significant reduction in non-performing loans, which totaled $2.5 million, or 0.17% of total loans, down from $8.5 million, or 0.56%, a year earlier.
Strategically, Hawthorn Bancshares has restructured its reporting segments to include a separate Wealth Management business, which is expected to enhance its service offerings and revenue streams. The company has also opened two new branch locations and one operations facility, contributing to an increase in occupancy expenses. The total number of full-time equivalent employees decreased to 264 from 276, reflecting ongoing efficiency measures.
Looking ahead, the company remains focused on maintaining its capital ratios, which are well above regulatory requirements, with a total risk-based capital ratio of 14.94% as of March 31, 2025. Management expressed confidence in the company's liquidity position, supported by a strong base of core customer deposits and access to additional funding sources. The company anticipates continued growth in its commercial banking services and retail mortgage lending, while also managing interest rate risk through its asset and liability management strategies.
About HAWTHORN BANCSHARES, INC.
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