Hawthorn Bancshares, Inc. reported third quarter 2026 net income of $7.1 million, or earnings per diluted share of $1.01. This represents an increase of $0.9 million, or 15.2%, compared to the same period in the prior year. The company reported adjusted net income of $8.6 million and adjusted earnings per share of $1.23 for the quarter.
Key financial metrics for the quarter included a net interest margin of 4.41% on a fully taxable equivalent basis, an improvement from the prior quarter and the prior year. The company’s return on average assets was 1.48%, while return on average equity was 14.91%. The efficiency ratio was 65.00%, with an adjusted efficiency ratio of 55.64%.
Loan balances increased by $273.8 million, or 19.3%, compared to the prior quarter, driven by the acquisition of FSC Bancshares, Inc. Deposits also grew by $302.8 million, or 20.3%, over the same period. The company noted that asset quality remained stable, with non-performing assets to total loans at 0.59%.
In other business developments, Hawthorn Bancshares announced that on October 28, 2026, its Board of Directors approved a quarterly cash dividend of $0.21 per common share. This dividend is payable on January 1, 2027, to shareholders of record as of the close of business on December 15, 2026.
The company also completed the acquisition of FSC Bancshares, Inc. on September 3, 2026, by merging it with Hawthorn Bancshares. The transaction added 9 full-service branch locations in northern Missouri. As of September 30, 2026, the company maintained a "well capitalized" regulatory capital position with a total risk-based capital ratio of 14.29%.
