Hawthorn Bancshares (HWBK) has wrapped up FY 2025 with fourth quarter revenue of US$20.8 million and EPS of US$0.90, set against trailing 12‑month revenue of US$79.9 million and EPS of US$3.44 that came with 30.4% earnings growth over the past year. The company has seen revenue move from US$71.9 million and EPS of US$2.61 on a trailing basis a year ago to the latest US$79.9 million and US$3.44, while quarterly revenue has ranged between US$16.7 million and US$20.8 million through 2025. With net profit margin at 29.8% over the last 12 months, the story for investors now turns to how sustainable these earnings and margins look from here.
See our full analysis for Hawthorn Bancshares.With the headline numbers on the table, the next step is to see how this earnings profile lines up against the prevailing narratives around Hawthorn Bancshares, including where the recent margin picture supports them and where it raises new questions.
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30.4% earnings lift meets 5.8% five year drag
- Over the last 12 months, earnings per share reached US$3.44, which sits against a 30.4% one year earnings rise but a 5.8% per year decline over five years.
- What stands out for a bullish view is that the recent 30.4% earnings growth and US$23.8 million of trailing net income sit beside that 5.8% annual decline over five years. The short term rebound lines up with the optimistic angle, while the longer trend keeps a check on how strong that bullish story really is.
- Supporters can point to the higher trailing EPS of US$3.44 versus the prior year figure of US$2.61 as evidence of a stronger recent earnings run.
- More cautious investors can highlight that the same data set flags earnings contracting by 5.8% per year over five years, which keeps the longer term backdrop more mixed.
Margins at 29.8% with cost ratio in the mid 60s
- Over the trailing 12 months, Hawthorn Bancshares recorded a 29.8% net profit margin, while the cost to income ratio in FY 2025 moved in a band from 66.64% in Q1 to 62.3% in Q3.
- What is interesting for a bullish take is that a 29.8% net margin, alongside quarterly net income figures between US$5.4 million and US$6.2 million in FY 2025, supports the idea of solid profitability. At the same time, the mid 60s cost to income levels and swings in non performing loans show that efficiency and credit quality still matter a lot to that thesis.
- Supporters can point to Q3 FY 2025, where a 3.97% net interest margin and a 62.3% cost to income ratio came with US$6.1 million of net income, as evidence that spreads and costs can work together.
- On the other side, Q1 FY 2025 carried a higher 66.64% cost to income ratio and US$2.5 million of non performing loans, which reminds investors that operating costs and credit charges can lean on margins even when earnings look healthy.
P/E of 9.9x and 2.35% yield versus 40.67 DCF fair value
- At a share price of US$34.00, Hawthorn Bancshares trades on a 9.9x P/E compared with peer and US Banks averages of 12.1x and 11.7x, alongside a DCF fair value of US$40.67 and a 2.35% trailing dividend yield.
- What critics focus on for a bearish angle is that even with the market price sitting about 16.4% below the US$40.67 DCF fair value and below peer P/E multiples, the 5.8% annual earnings decline over five years raises questions about how comfortably the stock can carry those value signals.
- Bears highlight that a multi year earnings decline of 5.8% per year can justify a lower than peer P/E of 9.9x, even after a stronger trailing 12 month period.
- Supportive investors counter that the combination of that lower P/E, the discount to DCF fair value and a 2.35% dividend yield offers some compensation while they watch how earnings and margins evolve from here.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Hawthorn Bancshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
See What Else Is Out There
Hawthorn Bancshares pairs a 30.4% one year earnings rise with a 5.8% per year five year earnings decline and mid 60s cost to income ratios.
If that mix of uneven earnings trends and a relatively high cost base feels uncomfortable, you may prefer to focus on steadier names in our CTA_SCREENER_STABLE_GROWTH, which is built for more consistent performance across cycles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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