AI Earnings Predictions for Hawthorn Bancshares Inc. (HWBK)

EX-99.1

2 q22026earnings-ex991626.htm

EX-99.1

Document

Exhibit 99.1

Hawthorn Bancshares Reports Second Quarter 2026 Results

Jefferson City, MO — July 29, 2026 — Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported second quarter 2026 net income of $7.3 million, or earnings per diluted share (“EPS”) of $1.06.

Second Quarter 2026 Results

•Net income improved $1.2 million, or 20.1%, to $7.3 million from the second quarter 2025 (the "prior year quarter") and the efficiency ratio improved to 60.66% compared to 62.32% for the prior year quarter

•EPS of $1.06, an improvement of $0.18 per share, or 20%, from the prior year quarter

•Net interest margin, fully taxable equivalent ("FTE") improved in the second quarter 2026 to 4.16% compared to 4.07% for the first quarter 2026 (the "prior quarter”) and 3.89% for the prior year quarter

•Provision for credit losses was $0.2 million higher than the prior quarter

•Return on average assets and equity of 1.63% and 16.39%, respectively

•Loans decreased $37.8 million, or 2.6%, and deposits decreased $30.1 million, or 2.0%, compared to the prior quarter

•Investments increased $25.4 million, or 12.0%, compared to the prior quarter

•Credit quality remained stable with non-performing assets to total loans of 0.53% compared to 0.35% in the prior year quarter

•Remained "well capitalized" with total risk-based capital of 16.40%

•Book value per share was $26.50, an increase of $1.07, or 4.2%, compared to the prior quarter and $3.97, or 17.6%, compared to the prior year quarter

(unaudited)

1

$000, except per share data

June 30,March 31,June 30,

202620262025

Balance sheet information

Total assets$1,773,040$1,855,860$1,877,417

Loans held for investment1,416,3601,454,1711,462,898

Investment securities236,171210,808229,392

Deposits1,488,1891,518,3161,517,986

Total stockholders’ equity182,794175,386156,823

Market and per share data

Book value per share$26.50 $25.43 $22.53

Market price per share39.30 33.69 29.14

Diluted earnings per share (QTR) 1.06 0.83 0.88

Financial Results for the Second Quarter 2026

Earnings

Net income for the second quarter 2026 was $7.3 million, an increase of $1.58 million, or 27.6%, from the prior quarter, and an increase of $1.2 million, or 20.1%, from the prior year quarter. EPS improved to $1.06 for the second quarter 2026 compared to $0.83 for the prior quarter and $0.88 for the prior year quarter.

Net Interest Income and Net Interest Margin

Net interest income for the second quarter 2026 was $17.3 million, an increase of $0.2 million from the prior quarter, and an increase of $1.1 million from the prior year quarter.

Interest income increased $0.4 million compared to the prior year quarter, driven primarily by higher rates on earning assets in the current quarter, while interest expense decreased $0.7 million compared to the prior year quarter due to lower costs on deposits. Net interest margin, on an FTE basis, was 4.16% for the current quarter, compared to 4.07% for the prior quarter, and 3.89% for the prior year quarter.

The yield earned on average loans held for investment increased to 6.18%, on an FTE basis, for the second quarter 2026, compared to 6.11% for the prior quarter and 5.98% for the prior year quarter.

The average cost of deposits was 2.13% for the second quarter 2026, compared to 2.15% for the prior quarter and 2.35% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 28.0% as of June 30, 2026, compared to 28.0% and 27.7% at March 31, 2026 and June 30, 2025, respectively.

2

Non-interest Income

Total non-interest income for the second quarter 2026 was $5.3 million, an increase of $2.2 million, or 72.1%, from the prior quarter, and an increase of $1.8 million, or 50.6%, from the prior year quarter. The increase during the quarter was primarily due the recognition of a gain the sale of a bank administrative office that was no longer being used.

Non-interest Expense

Total non-interest expense for the second quarter 2026 was $13.7 million, an increase of $0.7 million, or 5.4%, from the prior quarter, and an increase of $1.4 million, or 11.7%, from the prior year quarter.

The second quarter 2026 efficiency ratio was 60.66% compared to 64.29% and 62.32% for the prior quarter and prior year quarter, respectively. The improvement in the current quarter compared to the prior year quarter was primarily due to higher net interest margin and an increase in non-interest income.

Loans

Loans held for investment decreased $37.8 million, or 2.6%, to $1.42 billion as of June 30, 2026 compared to March 31, 2026, and decreased $46.5 million, or 3.2% from June 30, 2025.

Investments

Investments increased $25.4 million, or 12.0%, to $236.2 million as of June 30, 2026 compared to March 31, 2026, and increased $6.8 million, or 3.0%, from June 30, 2025.

Asset Quality

Non-performing assets to total loans was 0.53% at

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