$HWBK

HAWTHORN BANCSHARES, INC.

CIK:0000893847|SEC Filings

Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST INCOME
Interest and fees on loans	$ 21,852	$ 21,549	$ 43,944	$ 42,745
Interest and fees on loans held for sale	3	3	7	5
Interest on investment securities:
Taxable	1,364	1,398	2,528	2,702
Nontaxable	585	586	1,169	1,173
Federal funds sold and Other interest-bearing deposits	449	290	886	539
Dividends on other investments	99	85	212	205
Total interest income	24,352	23,911	48,746	47,369
Interest on deposits:
Savings, interest checking and money market	3,508	4,086	7,170	8,435
Time deposits	2,177	2,422	4,386	4,886
Total interest expense on deposits	5,685	6,508	11,556	13,321
Interest on federal funds purchased and securities sold under agreements to repurchase and other	13	1	26	1
Interest on Federal Home Loan Bank advances	617	404	1,252	903
Interest on subordinated notes	779	856	1,552	1,708
Total interest expense on borrowings	1,409	1,261	2,830	2,612
Total interest expense	7,094	7,769	14,386	15,933
Net interest income	17,258	16,142	34,360	31,436
Release of credit losses on loans	(65)	(159)	(185)	(441)
Provision for credit losses on unfunded commitments	303	108	496	50
Total provision for (release of) credit losses on loans and unfunded commitments	238	(51)	311	(391)
Net interest income after provision for (release of) credit losses on loans and unfunded commitments	17,020	16,193	34,049	31,827
NON-INTEREST INCOME
Earnings on bank-owned life insurance	498	509	991	1,019
Gain on sale of mortgage loans, net	69	117	146	242
Gains (losses) on other real estate owned and other assets, net	335	(177)	302	(156)
Other	1,988	611	2,208	1,105
Total non-interest income	5,377	3,545	8,477	7,008
Investment securities gains (losses), net	280	(1)	285	(3)
NON-INTEREST EXPENSE
Salaries and employee benefits	7,593	6,703	14,407	13,615
Occupancy expense, net	859	947	1,850	1,883
Furniture and equipment expense	791	673	1,561	1,466
Processing, network, and bank card expense	1,419	1,443	2,837	2,844
Legal, examination, and professional fees	944	428	1,746	921
Advertising and promotion	236	212	439	372
Postage, printing, and supplies	202	342	501	636
Other	1,703	1,521	3,408	3,031
Total non-interest expense	13,747	12,269	26,749	24,768
Income before income taxes	8,930	7,468	16,062	14,064
Income tax expense	1,604	1,367	2,993	2,580
Net income	$ 7,326	$ 6,101	$ 13,069	$ 11,484
Basic earnings per share (in dollars per share)	$ 1.06	$ 0.88	$ 1.89	$ 1.65
Diluted earnings per share (in dollars per share)	$ 1.06	$ 0.88	$ 1.89	$ 1.65
Service charges and other fees
NON-INTEREST INCOME
Income from fees	$ 815	$ 940	$ 1,635	$ 1,853
Bank card income and fees
NON-INTEREST INCOME
Income from fees	1,018	1,003	1,925	1,929
Wealth management revenue
NON-INTEREST INCOME
Income from fees	$ 654	$ 542	$ 1,270	$ 1,016

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 13,069	$ 11,484
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (release of) credit losses on loans and unfunded commitments	311	(391)
Depreciation expense	1,257	1,140
Net amortization of investment securities, premiums, and discounts	125	208
Provision for valuation allowance for premises and equipment held for sale	278	0
Investment securities (gains) losses, net	(285)	3
Gain on sales and dispositions of premises and equipment	(1,390)	(48)
Gain on sales and dispositions of other real estate	(302)	(28)
Provision for valuation allowance for other real estate owned	0	184
Share-based compensation expense	274	177
Increase in cash surrender value - life insurance	(596)	(765)
Decrease (increase) in accrued interest receivable and other assets	732	(384)
Decrease in operating lease liabilities	(240)	(138)
Increase in accrued interest payable and other liabilities	5,068	49
Origination of mortgage loans held for sale	(18,066)	(2,661)
Proceeds from the sale of mortgage loans held for sale	18,060	2,903
Gain on sale of mortgage loans, net	(146)	(242)
Net cash provided by operating activities	18,149	11,491
Cash flows from investing activities:
Net decrease in loans	72,217	3,229
Purchase of available-for-sale debt securities	(36,470)	(13,332)
Proceeds from maturities, calls, and paydowns of available-for-sale debt securities	11,870	11,378
Purchases of FHLB stock	(48,852)	(9,657)
Proceeds from sales of FHLB stock	52,139	7,147
Purchases of premises and equipment	(2,508)	(924)
Proceeds from sales of premises and equipment	1,895	49
Proceeds from sales of other real estate and repossessed assets	65	1,418
Net cash provided by (used in) investing activities	50,356	(692)
Cash flows from financing activities:
Net increase (decrease) in demand deposits	(7,179)	34,892
Net decrease in interest bearing transaction accounts	(51,277)	(58,123)
Net increase (decrease) in time deposits	(7,504)	8,035
Repayment of FHLB advances and other borrowings	(1,154,764)	(170,100)
Proceeds from FHLB advances and other borrowings	1,082,040	228,675
Decrease in finance lease liabilities	(75)	0
Proceeds from financing obligation	1,908	0
Repayment of financing obligation	(3)	0
Purchase of treasury stock	(396)	(2,222)
Cash dividends paid - common stock	(2,832)	(2,656)
Net cash provided by (used in) financing activities	(140,082)	38,501
Net (decrease) increase in cash and cash equivalents	(71,577)	49,300
Cash and cash equivalents, beginning of period	104,312	50,994
Cash and cash equivalents, end of period	32,735	100,294
Cash paid during the period for:
Interest	14,471	16,041
Income taxes	3,206	597
Non-cash investing and financing activities:
Other real estate and repossessed assets acquired in settlement of loans	2,609	0
Loans held for investment originated through other real estate and repossessed assets sold	2,099	0
Loans And Leases Receivable Originated Through Sale Of Premises and Equipment	1,875	0
Right of use assets obtained in exchange for new operating lease liabilities	1,122	1,351
Dividends declared not paid - common stock	$ 1,448	$ 1,389

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 22,900	$ 16,632
Other interest bearing deposits	9,835	87,680
Cash and cash equivalents	32,735	104,312
Certificates of deposit in other banks	1,000	1,000
Available-for-sale debt securities, at fair value	233,476	209,939
Other investments	2,695	5,976
Loans held for investment	1,416,360	1,486,792
Allowance for credit losses	(20,730)	(21,111)
Net loans	1,395,630	1,465,681
Loans held for sale	152	616
Premises and equipment - net	30,472	29,963
Premises and equipment held for sale, net	1,350	3,956
Other real estate owned - net	845	98
Cash surrender value of bank-owned life insurance	41,040	40,444
Accrued interest receivable and other assets	33,645	32,865
Total assets	1,773,040	1,894,850
Deposits
Non-interest bearing demand	416,389	423,568
Savings, interest checking and money market	775,792	827,069
Time deposits	296,008	303,512
Total deposits	1,488,189	1,554,149
Federal Home Loan Bank advances and other borrowings	29,362	102,086
Subordinated notes	49,486	49,486
Operating lease liabilities	3,564	2,682
Finance lease liabilities	1,130	1,205
Accrued interest payable and other liabilities	18,515	11,013
Total liabilities	1,590,246	1,720,621
Stockholders’ equity:
Common stock, $1.00 par value, authorized 15,000,000 shares; issued 7,554,893 shares	7,555	7,555
Surplus	76,691	76,828
Retained earnings	118,034	107,863
Accumulated other comprehensive loss, net of tax	(5,097)	(3,613)
Treasury stock; 654,215 and 653,633 shares, at cost, respectively	(14,389)	(14,404)
Total stockholders’ equity	182,794	174,229
Total liabilities and stockholders’ equity	$ 1,773,040	$ 1,894,850