Hawthorn Bancshares Delivers Impressive Q2 2025 Financial Growth
Hawthorn Bancshares Reports a Successful Second Quarter
Hawthorn Bancshares, Inc. (NASDAQ: HWBK) has showcased strong performance in its second quarter financial results, reporting net income of $6.1 million—an impressive increase of 31.8% year-over-year. This translates to earnings per diluted share of $0.88, marking a significant improvement of $0.22 from the same period last year.
Key Financial Highlights for Q2 2025
Second Quarter Results Overview:
- Net Income Growth: The bank’s net income increased by $1.5 million compared to the second quarter of 2024, indicating robust operational performance and improved efficiency, with the efficiency ratio now standing at 62.32%.
- Earnings Per Share: EPS rose to $0.88, up from $0.66 year-over-year, signaling a strong earnings trajectory.
- Improved Net Interest Margin: The net interest margin reached 3.89%, rising from 3.67% in the previous quarter, highlighting enhanced profitability in lending operations.
- Credit Quality Maintenance: The company showed resilience in its credit quality with non-performing assets as a percentage of total loans improving to 0.35% from 0.54% a year prior.
- Capital Ratios: Hawthorn Bancshares remains well-capitalized, boasting a total risk-based capital of 15.12%, which underscores its strong financial foundation.
- Investments Growth: The bank also reported a $2.8 million increase in investments, reflecting strategic growth in asset management.
- Responsive Management: The company has actively managed its net interest margin and expenses, which are key strategies for sustainable growth and stability in a competitive banking environment.
Leadership Insights
CEO's Perspective: Brent Giles, the CEO of Hawthorn Bancshares, expressed satisfaction with the team’s efforts during the quarter, emphasizing the successful alignment with strategic goals. He stated, “As we advance, our team’s dedication to achieving results exemplified our 'One Hawthorn' ethos.”
Detailed Operational Performance
Financial Summary for Six Months Ending June 2025: For the six months ending June 30, 2025, Hawthorn Bancshares recorded net income of $11.5 million, or $1.65 per diluted share, marking a substantial rise from $9.1 million, or $1.29, in the prior year.
Interest Income and Margin: The net interest income for Q2 was $16.1 million, growing by $2 million from the previous year. This was fueled by a 5.98% yield on average loans, showcasing the bank's effective interest rate management.
Deposit Trends: Despite an overall decrease in deposits of $25.9 million, the bank has shown resilience through effective management of its deposit base.
Investment Focus and Credit Quality
Hawthorn Bancshares continues to monitor and improve its asset quality, with equal attention on maintaining strong lending practices and prudent credit management. The allowance for credit losses stood at $21.6 million, representing a solid buffer against potential credit risk.
As fiscal priorities remain focused on enhancing shareholder value, management remains optimistic about future growth, aligning with industry trends and customer needs.
Commitment to Shareholders
As a part of returning value to shareholders, the Board of Directors has authorized a quarterly cash dividend of $0.20 per share, scheduled for payment in the upcoming quarter, reinforcing the bank's commitment to rewarding its shareholders.
About Hawthorn Bancshares
Hawthorn Bancshares, Inc. is a well-established financial holding company that has been serving families and businesses for over 150 years, crucially impacting the communities it operates in. With multiple branches extending services in key markets, the bank remains focused on customer satisfaction and operational excellence.
Contact Information
Hawthorn Bancshares, Inc.
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
Website: www.HawthornBancshares.com
Frequently Asked Questions
What were the earnings per share (EPS) for Hawthorn Bancshares in Q2 2025?
The EPS for Hawthorn Bancshares in Q2 2025 was $0.88.
How much did the net income increase from Q2 2024 to Q2 2025?
The net income increased by $1.5 million, or 31.8%, from Q2 2024 to Q2 2025.
What is the company’s total risk-based capital ratio?
The total risk-based capital ratio for Hawthorn Bancshares is 15.12%.
How has the company managed its credit quality?
Hawthorn Bancshares has maintained strong credit quality, with non-performing assets improving to 0.35% of total loans.
What dividend has the company declared for the next quarter?
The company has declared a quarterly cash dividend of $0.20 per share, payable in October 2025.
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