Hawthorn Bancshares Posts 34% Q3 Earnings Growth, Raises Dividend

Hawthorn Bancshares Inc. reported strong financial results for the third quarter of 2025, with net income rising 34.1% to $6.1 million and earnings per share increasing to $0.88 from $0.66 the previous year. The company's revenue increased 13.7% to $20.59 million, supported by a 3.5% growth in its loan portfolio and a 0.5% rise in deposits. Hawthorn's net interest margin improved to 3.97% due to higher rates on earning assets and lower deposit costs, while its efficiency ratio improved, reflecting enhanced operational performance. Credit quality remained strong, with non-performing assets to total loans decreasing to 0.48%. The company announced a quarterly cash dividend of $0.20 per share, payable in January 2026, signaling confidence in its financial health and commitment to shareholder returns. Analysts currently rate the stock as a hold with a neutral outlook, noting solid profitability but mixed signals on revenue and cash flow trends.