Hawthorn Bancshares Sees Stock Decline After Q1 Earnings Report Despite NIM Improvement

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Shares of Hawthorn Bancshares, Inc. (HWBK) have dropped 1.4% since reporting their first-quarter 2026 financial results, underperforming the S&P 500, which rose 2.3% during the same period. Despite a 3.7% increase over the past month, the stock has lagged behind the S&P 500’s 10.8% gain.

For the quarter ending March 31, 2026, Hawthorn reported a net income of $6.8 million, a 25.9% increase year-over-year, with diluted earnings per share rising 27.3% to $0.98. The company’s net interest income jumped 11.8% to $17.1 million, bolstered by improved asset yields and lower funding costs. The fully taxable equivalent net interest margin (NIM) improved to 4.07% from 3.67% a year earlier.

Hawthorn maintained robust capital ratios with a total risk-based capital ratio of 15.91% and a common equity tier 1 capital ratio of 11.61% as of March 31, 2026. The company also announced a quarterly cash dividend of $0.21 per common share, scheduled for payment on July 1, 2026.

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