Hawthorn Bancshares Revises Q1 Earnings Downward by 19% Due to Accounting Adjustment
HWBK sits 34% above its 52-week low of $27.07 on elevated volume (4.2× avg).
Summary
Hawthorn Bancshares, Inc. filed an amended 8-K to correct its preliminary Q1 2026 financial results, reporting a significant downward revision of net income and EPS due to an accounting adjustment.
Key Events · Corporate Governance and Compliance · HWBK
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Preliminary Q1 Earnings Revised Downward
Net income for Q1 2026 decreased by $1.1 million and EPS by $0.15, representing approximately an 18-19% reduction from previously announced preliminary figures.
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Accounting Adjustment for Property Sale
The revision stems from an accounting adjustment related to a $1.2 million gain from a property sale and leaseback, which was reclassified as a financing obligation due to contractual language indicating continuing involvement.
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Impact on Upcoming 10-Q
The revised financial information is expected to be included in the company's upcoming Form 10-Q for the quarter ended March 31, 2026.
Analysis · HWBK · Finance
This 8-K/A amends the preliminary Q1 2026 financial results previously announced on April 29, 2026. The company identified an accounting error related to a $1.2 million gain from a property sale and leaseback, which was incorrectly recognized due to continuing involvement. As a result, net income for the quarter ended March 31, 2026, has been revised downward by $1.1 million, and earnings per share (EPS) by $0.15. This represents a significant reduction of approximately 19% in both net income and EPS from the initial preliminary figures, which could negatively impact investor sentiment, especially as the stock is currently trading near its 52-week high. Investors should note these revised figures will be reflected in the upcoming Form 10-Q.
At the time of this filing, HWBK was trading at $36.25 on NASDAQ in the Finance sector, with a market capitalization of approximately $249.8M. The 52-week trading range was $27.07 to $36.78. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.