Hawthorn Bancshares | 10-Q: FY2025 Q3 Revenue: USD 28.82 M

Revenue: As of FY2025 Q3, the actual value is USD 28.82 M.

EPS: As of FY2025 Q3, the actual value is USD 0.88.

EBIT: As of FY2025 Q3, the actual value is USD -9 M.

Segment Revenue

• Interest Income: Hawthorn Bank reported interest income of $24,976 thousand for the three months ended September 30, 2025, and $72,293 thousand for the nine months ended September 30, 2025. Wealth Management reported no interest income for both periods, while Non-Bank reported $27 thousand and $79 thousand respectively.

Operational Metrics

• Net Interest Income: Hawthorn Bank’s net interest income was $17,699 thousand for the three months ended September 30, 2025, and $50,791 thousand for the nine months ended September 30, 2025. Non-Bank reported negative net interest income of -$834 thousand and -$2,490 thousand respectively.
• Provision for Credit Losses: The provision for credit losses was $375 thousand for the three months ended September 30, 2025, and -$16 thousand for the nine months ended September 30, 2025.
• Net Income: Hawthorn Bank reported net income of $6,653 thousand for the three months ended September 30, 2025, and $19,530 thousand for the nine months ended September 30, 2025. Wealth Management reported net income of $285 thousand and $515 thousand respectively, while Non-Bank reported net losses of -$806 thousand and -$2,429 thousand respectively.

Cash Flow

• Net Cash Provided by Operating Activities: $11,779 thousand for the nine months ended September 30, 2025.
• Net Cash Used in Investing Activities: -$44,620 thousand for the nine months ended September 30, 2025.
• Net Cash Provided by Financing Activities: $81,722 thousand for the nine months ended September 30, 2025.

Unique Metrics

• Efficiency Ratio: 62.30% for the three months ended September 30, 2025, and 63.68% for the nine months ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The Company aims to grow its commercial banking services, retail mortgage lending, and retail banking services through its branch network. The success of this strategy depends on generating an increasing level of loans and deposits at acceptable risk levels and terms without significant increases in non-interest expenses relative to revenues generated.
• Non-Core Business: The Wealth Management business has been identified as a strategic opportunity, with additional management resources hired to provide structure for products and processes. This segment is now reported separately, indicating a focus on expanding financial and investment planning services.

Priority

• Regulatory Capital Levels: The Company emphasizes maintaining sufficient regulatory capital levels during unfavorable economic conditions.