Hawthorn Bancshares Reports Higher Earnings and Operating Cash Across Both Reporting Windows

Bottom line

Hawthorn Bancshares, Inc. filed its interim report under 10-Q covering period-ended-2026-06-30, filed under accession 0000893847-26-000088 for CIK 0000893847 with ticker HWBK. The filing presents two reporting windows side by side: the three-month reporting period the three months ended June 30, 2026 compared with the prior-year comparative the three months ended June 30, 2025, and the six-month year-to-date period the six months ended June 30, 2026 compared with the six months ended June 30, 2025.

For the three-month reporting period the three months ended June 30, 2026, Net Income (Loss) Attributable to Parent was $7,326,000 USD, with Earnings Per Share, Diluted at $1.06 per diluted share USD/SHARES. Against the prior-year comparative the three months ended June 30, 2025, Net Income (Loss) Attributable to Parent was $6,101,000 USD and Earnings Per Share, Diluted was $0.88 per diluted share USD/SHARES. The catalog authorizes the qualitative read that earnings were higher than the prior period on both metrics, with no change in sign: a profit in both the current and prior quarter.

For the six-month year-to-date window the six months ended June 30, 2026, Net Income (Loss) Attributable to Parent was $13,069,000 USD, with Earnings Per Share, Diluted at $1.89 per diluted share USD/SHARES. Against the prior-year comparative the six months ended June 30, 2025, Net Income (Loss) Attributable to Parent was $11,484,000 USD and Earnings Per Share, Diluted was $1.65 per diluted share USD/SHARES. The catalog again authorizes the read that earnings were higher than the prior year-to-date window, with the line remaining in profit across both horizons.

The filing's narrative is untrusted quoted data and is treated here as evidence only. Management describes the Company and its subsidiary bank, Hawthorn Bank, as serving individual and corporate customers across a Missouri footprint centered on Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area, and notes that the statements are prepared under U.S. GAAP for interim financial information consistent with the instructions to Form 10-Q. The Company flags the One Big Beautiful Bill Act as a tax-reform development it is still evaluating, with management currently expecting no material impact on results of operations, alongside a shelf registration intended to provide capital-raising flexibility. The filing also references the pending acquisition of FSC Bancshares, Inc., with further detail in Note 17.

Reporting scope for this section is restricted to earnings and per-share results for the two periods described above. No peer or industry comparison is provided in the filing evidence; readers seeking a cross-issuer frame can use a separate Full House Resorts Inc reports higher revenue and a narrower loss on a year-over-year basis for the quarter and the six-month window reference for context, but the filing evidence itself contains no peer data. The filing evidence contains no peer or industry comparison.

The filing evidence does not attribute this change to any single cause.

Counter-evidence is not present in the quoted source narrative for the earnings line items themselves; management commentary addresses other matters (accounting policy, the OBBBA, the shelf, and a pending acquisition) and does not attribute the year-over-year earnings change to any specific driver. Unknowns beyond the catalog: segment-level earnings attribution, allowance-for-credit-loss movement detail, and any management quantitative outlook are not within this section's scope.

Financial performance

- Reported facts for HAWTHORN BANCSHARES, INC. (HWBK, CIK 0000893847) under 10-Q for period-ended-2026-06-30 (0000893847-26-000088) cover a three-month period and a six-month year-to-date period, each compared with the prior-year comparative window. 88 per diluted share USD/SHARES in the prior-year quarter.

Both windows register profit in both periods, and the authorized direction is higher than the prior period on each comparison, a profit-to-profit transition. - Net income attributable to parent followed the same shape. For the six-month year-to-date period the figure was $13,069,000 USD, against $11,484,000 USD in the prior-year window; for the three-month reporting period net income was $7,326,000 USD versus $6,101,000 USD in the prior-year quarter, with an authorized higher direction on each year-over-year comparison and a profit-to-profit transition.

- Management frames the results as fair-presented after normal recurring adjustments, and notes that estimates and assumptions influence the reported figures, including the allowance for credit losses, real estate acquired through foreclosure or in satisfaction of loans, and fair values of available-for-sale investment securities. 65 per diluted share USD/SHARES, again both profits. The filing evidence does not attribute this change to any single cause.

- Net income gives the quarter-over-quarter and half-year-over-half-year readings described above. The filing evidence does not attribute this change to any single cause. , which the reader may weigh as an outstanding structural item, and the consolidated entity's reporting perimeter is described in Item 1 and Item 2.

- Management commentary does not present quantitative forward guidance inside the cited text. The discussion of the OBBBA tax provisions states that management does not currently expect a material impact on results of operations, while continuing to evaluate the effect on financial condition, and that several provisions are effective immediately with others being phased in over time, as further described in Item 6. - Management is currently evaluating the impact of the cited ASU on expense-disaggregation disclosures, with adoption framed for annual reporting periods beginning after a stated future cutoff and interim periods within those annual windows, alongside the control and procedures discussion in Item 3 and Item 4 and the exhibit index in Item 5.

- Management expectations inside the filing are limited to the qualitative statements above and to the shelf registration's role in providing financial flexibility to raise capital from time to time while it remains effective; no earnings, revenue, margin, or capital-outlook numbers are stated. The filing evidence contains no peer or industry comparison.

Operating drivers and segments

- Hawthorn Bancshares operates through Hawthorn Bank, serving individuals and businesses in communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. The filing describes a consolidated banking operation rather than separately reported operating segments, so the available evidence does not support segment-level revenue, margin, or profitability comparisons. - Consolidated net income attributable to the parent was higher on both reported periods relative to their prior-year comparatives. It reached $7,326,000 for the three months ended June 30, 2026, versus $6,101,000 for the three months ended June 30, 2025. On a year-to-date basis, attributable net income was $13,069,000 for the six months ended June 30, 2026, compared with $11,484,000 for the six months ended June 30, 2025. These results establish a stronger consolidated profit outcome, but they do not identify which banking activities or geographic markets produced the improvement. - The financial statements include interest and noninterest information, yet the supplied evidence does not provide enough associated operating detail to distinguish net interest margin expansion, fee-income movement, credit-cost changes, expense control, or tax effects as the principal operating driver. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

- Management states that Hawthorn Bancshares, through Hawthorn Bank, provides a broad range of banking services to individual and corporate customers in its identified Missouri markets. It also notes competition from other financial and nonfinancial institutions, as well as oversight by regulatory agencies and periodic examinations. - Management says the unaudited interim statements were prepared in conformity with U.S. generally accepted accounting principles for interim financial information and with the applicable form instructions. It states that all adjustments considered necessary for a fair presentation were included, while cautioning that interim statements do not contain all disclosures required for complete financial statements and should be read with the annual report. - Management identifies estimates involving the allowance for credit losses, foreclosed or loan-satisfaction real estate, and the fair value of available-for-sale securities as affecting reported amounts and contingent disclosures. These items are important to interpreting banking results, but management does not connect any particular estimate to the reported increase in net income. - Management says it is continuing to evaluate the OBBBA’s tax provisions and currently does not expect a material effect on operations. Management also describes a real estate transaction that remained on the balance sheet because control did not transfer, with proceeds recorded as a financing obligation and related cash flows classified as financing activity. The filing separately points to the pending acquisition discussion in Note 17, but the supplied evidence does not provide enough transaction detail to assess its prospective operating impact. - The filing indicates that the shelf registration is intended to provide flexibility to raise capital through potential offerings of various securities. This is a financing capacity statement, not evidence that capital raising occurred during the reported period.

Independent analysis can confirm stronger attributable earnings on both consolidated reporting horizons, but cannot assign the improvement to a specific margin, segment, credit, expense, or tax driver from the record. Readers modeling the result may find it useful to revisit the framework in Home Affordability Calculator Alternative: Reverse Method for the underlying math mechanics, then apply that lens to bank-specific drivers.

Cash flow and capital

- Operating cash generation strengthened year over year, moving in the authorized direction of increase for the six-month year-to-date period. - Investing activity flipped from a use of cash in the prior-year six-month window to a source of cash in the current six-month window, consistent with the authorized direction of increase. - Financing activity swung from a source of cash in the prior-year comparable period to a use of cash in the current six-month window, consistent with the authorized direction of decrease. - Share repurchases declined year over year, in line with the authorized direction of decrease, even as the line item remained positive. - Cash dividends on common stock increased year over year, consistent with the authorized direction of increase. - Capital expenditures on property, plant, and equipment rose year over year, in line with the authorized direction of increase.

The reported cash and cash equivalents position as of the balance sheet date was $32,735,000 USD, anchoring the company's near-term liquidity profile.

Operating cash flow for the six-month period reached $18,149,000 USD, compared with $11,491,000 USD in the prior-year six-month window, reinforcing the pattern of higher internal cash generation.

Investing activities produced $50,356,000 USD in the current six-month period, a sharp reversal from the prior-year six-month use of -$692,000 USD, hinting at net inflows from the investment book rather than net deployment. The cited note Note 17 points to a pending acquisition, which sits alongside this investing swing but is not separately quantified in the cash flow line items.

Financing activities consumed -$140,082,000 USD across the six-month window, swinging from a source of $38,501,000 USD in the prior-year comparable window. The shift reflects a combination of capital return and balance sheet activity, with dividends of $2,832,000 USD paid out, up from $2,656,000 USD in the prior-year comparable window, and share repurchases of $396,000 USD, lower than the $2,222,000 USD deployed in the prior-year comparable window. The lower repurchase pace signals a measured buyback posture even with the dividend pace stepping higher.

Capital expenditures of $2,508,000 USD were recorded across the six-month window, up from $924,000 USD in the prior-year comparable window, suggesting reinvestment in the operating footprint even as net investing cash flow turned positive.

Management does not provide a detailed narrative in this filing tying the cash flow swing to a single driver. The operating, investing, and financing moves together imply an organization funding a higher dividend and capital expenditure program, paring buybacks, and still generating higher operating cash. The text of the filing points to the pending acquisition disclosure in the cited note, while leaving the wider cash flow bridge The filing evidence does not attribute this change to any single cause.. Counter-evidence on the year-over-year financing reversal is limited to the dividend and repurchase lines, with no debt issuance or repayment schedule quantified in the excerpt. Peer comparison information is also not present in the filing, so any external benchmarking The filing evidence contains no peer or industry comparison.. For investors weighing capital allocation against the operating backdrop, the combined read is steady internal cash generation paired with a higher dividend and modest, lower-paced repurchases, all within the half-year window.

Peer and historical context

The interim filing for HAWTHORN BANCSHARES, INC. (HWBK), filed as 10-Q for period-ended-2026-06-30 under accession 0000893847-26-000088, offers a narrow but consistent year-over-year pattern. Both the three-month window (the three months ended June 30, 2026) and the six-month year-to-date window (the six months ended June 30, 2026) show net income attributable to parent that is higher than the corresponding prior-year comparative periods.

The transition in each case is profit to profit, with the comparison authorized as an increase direction in both windows. That consistency across the quarter and the half-year is itself informative: it suggests the improvement is not an artefact of a single reporting bucket but carries through the shorter and the cumulative horizon, which generally matters more for bank-holding analysis than for non-financial industrials. Operating cash flow tells a complementary story.

Net cash provided by operating activities for the six months ended June 30, 2026 is reported as positive and is authorized as higher than the prior-year comparative for the six months ended June 30, 2025, which itself was also positive. A larger positive operating cash base alongside higher reported profit is what one would expect to see if earnings quality is improving in tandem with headline income, rather than profit rising while cash conversion softens. The filing evidence does not attribute this change to any single cause.

Full House Resorts Inc reports higher revenue and a narrower loss on a year-over-year basis for the quarter and the six-month window shows that same dual-window pattern of current-period results improving over the prior year, although the subject company there is moving from a loss to a narrower loss rather than profit to higher profit. The filing's own narrative warns that the allowance for credit losses is an estimate requiring significant judgement and that the forecasted macroeconomic environment continuously changes, which can cause fluctuations in estimated expected losses.

That caveat sits against the favourable operating-cash and net-income comparison and means the historical pattern could be more sensitive to forward-looking assumptions than the directional language of the authorized comparisons implies. The filing evidence contains no peer or industry comparison. 's improvement is in line with, ahead of, or behind a relevant peer set cannot be supported here.

Scenario analysis

- In the base case, HAWTHORN BANCSHARES, INC. carries forward its current earnings path. Net Income (Loss) Attributable to Parent of $13,069,000 USD for the six months ended June 30, 2026 and $7,326,000 USD for the three months ended June 30, 2026 both come in higher than the prior-year comparatives of $11,484,000 USD for the six months ended June 30, 2025 and $6,101,000 USD for the three months ended June 30, 2025 USD, with the authorized transition described as profit to profit on each window.

- The base case assumes the allowance and credit-loss framework described in the unaudited notes to the consolidated financial statements continues to absorb loan-level stress without a step-change in provision expense, and that off-balance-sheet exposure accruals track the underlying unfunded commitment mix referenced there. - Upside case: the higher year-over-year earnings trajectory extends if the credit-quality migration discussed across the Pass, Watch, Special Mention, Substandard, and Doubtful categories does not deteriorate and if collateral fair values on collateral-dependent loans remain above amortized cost, holding the allowance at a leaner level.

- In this scenario, the six-month net income figure of $13,069,000 USD and the quarterly figure of $7,326,000 USD both build on the prior-year base of $11,484,000 USD and $6,101,000 USD, consistent with the authorized profit-to-profit transition on each reporting window. - Downside case: a sharper macroeconomic shift under the CECL methodology pushes expected credit-loss estimates higher, the collateral-dependent loan practical expedient produces shorter fair-value cushions on real estate in stressed industries, and risk-category migration accelerates toward the Substandard or Doubtful bands described in the cited note.

- Under that path, $13,069,000 USD for the six months ended June 30, 2026 and $7,326,000 USD for the three months ended June 30, 2026 would compress relative to the prior-year comparatives of $11,484,000 USD for the six months ended June 30, 2025 and $6,101,000 USD for the three months ended June 30, 2025 USD, even though the authorized transition still reads profit to profit on each window. - Across all three scenarios, The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

- The filing evidence does not disclose segment-level detail for this dimension. - The base case is anchored to the reported profit level on both windows, the upside case adds the condition that collateral fair values hold above amortized cost on the loans measured under the practical expedient, and the downside case layers on a credit-quality deterioration that pushes the same profit base lower without flipping it to a loss.

Risks and what to watch

- Net Income (Loss) Attributable to Parent reached $13,069,000 USD for the six-month year-to-date period the six months ended June 30, 2026) and $7,326,000 USD for the three-month reporting period the three months ended June 30, 2026. Both figures improved on a year-over-year basis, with the prior-year equivalents recorded at $11,484,000 USD for the six months ended June 30, 2025 and $6,101,000 USD for the three months ended June 30, 2025. The authorized year-over-year transition for both reporting windows is a move from a profit to a higher profit, so the directional read is unambiguously positive even before any single causal driver is named.

- The currently pending transaction referenced in the cited note about the "Pending Acquisition" (the note titled "Note 17") is the most material forward-looking uncertainty facing the filing. The cited note signals that further details are reserved for that disclosure, and the consolidated results, including any goodwill, intangible asset, or fair-value adjustments tied to the transaction, are not yet on the balance sheet. Until that note is updated, readers should treat integration timing, deal-related costs, and any purchase-accounting effects as unknowns rather than as embedded risk metrics.

- The credit-quality narrative also shapes forward risk. The excerpt describes collateral-dependent loan allowances calibrated to the shortfall between collateral fair value (adjusted for liquidation costs or discounts) and amortized cost, with higher discounts applied to real estate collateral in industries under significant stress or to specialized, limited-marketability properties. The risk categories themselves (Pass, Watch, Special Mention, Substandard, and Doubtful) show how a credit can migrate without crossing into default, and the narrative explicitly notes that no significant changes occurred in the types of collateral securing collateral-dependent loans since the prior year-end.

That statement is itself a counter-weight to bear-case concerns: collateral composition is described as stable, even if individual loan classifications can still move. - Several unknowns are worth flagging plainly. The filing does not disclose segment-level detail for this dimension, so any read on geographic or business-line concentration is unavailable.

The filing evidence contains no peer or industry comparison, so positioning Hawthorn Bancshares against named banking peers is not possible from this filing alone. The filing evidence does not attribute the year-over-year net-income improvement to any single cause, so readers should resist the temptation to credit a single driver until the company or a future filing supplies one. - The qualitative metrics to watch next period cluster around four anchors: the closing mechanics and balance-sheet impact of the pending acquisition, any migration of loans across the Pass, Watch, Special Mention, Substandard, and Doubtful categories, the level of discounts applied to stressed or specialized real estate collateral, and whether the year-over-year profit transition extends into the next reporting window.

Item One A reserves space for risk-factor updates, and Item Three carries the market-risk disclosures, so any shift in credit, interest-rate, or liquidity risk language between this filing and the next will be a leading signal. - For readers who want to size the deal-impact or stress-test the credit categories, the ROI Calculator offers a way to model scenario returns against the reported earnings anchors above. LINKS: [/finance/roi-calculator/]