Hawthorn Bancshares reported net income of $7.1 million for the third quarter 2026, representing a 15.2% increase compared to the prior year period. Results were significantly impacted by the acquisition of FSC Bancshares, Inc. in early September, which drove substantial growth in the loan and deposit portfolios. While total income increased, profitability was offset by $2.0 million in acquisition-related expenses during the quarter.
Key Highlights
- Loans held for investment surged 19.3% sequentially to $1.69 billion, primarily due to the addition of the FSC Bancshares portfolio.
- Net interest margin (FTE) expanded to 4.41% from 3.97% in the prior year quarter, supported by higher yields on earning assets.
- Adjusted diluted EPS reached $1.23, excluding one-time merger costs and benefiting from the utilization of federal income tax credits.