Executive Summary

EPS of $0.77 and net income of $5.4M; efficiency ratio improved to 66.64% and FTE NIM expanded to 3.67%, marking sequential and year-over-year operational gains .
Credit quality strengthened: non-performing assets to loans fell to 0.21% (from 0.29% in Q4 and 0.69% in prior year quarter); provision was a $0.3M release in Q1 .
Balance sheet trends were constructive: deposits +$10.7M QoQ to $1.544B, loans +$4.2M QoQ to $1.470B; equity rose to $153.4M; book value/share increased to $21.97 .
Dividend raised to $0.20 per share (payable July 1, 2025), up $0.01 from prior quarter; repurchased ~15,856 shares in Q1 with $3.5M remaining authorization—capital return is a near-term stock catalyst .
Wall Street consensus coverage appears limited for this microcap bank; S&P Global showed no EPS or revenue consensus for Q1 2025. Use actuals and trajectory to anchor expectations going forward (values retrieved from S&P Global).*

What Went Well and What Went Wrong

NIM expansion and improved efficiency: FTE NIM rose to 3.67% from 3.55% (Q4) and 3.39% (prior year), and the efficiency ratio improved to 66.64% YoY, reflecting disciplined cost control and lower deposit costs .
Credit quality: NPAs to loans improved to 0.21% (vs. 0.29% in Q4 and 0.69% YoY); allowance coverage of non-performing loans strengthened to 885% .
Management execution and tone: “Our strong first quarter aligns with our focus on growing core relationships and improving financial results…” — CEO Brent Giles, signaling confidence in product, operations, and resource enhancements .

YoY loan contraction: loans decreased $48.5M YoY (to $1.470B), highlighting a still-muted lending environment despite modest sequential growth .
Sequential net interest income down slightly: NII dipped by $0.1M QoQ (to $15.3M), with lower average interest earning assets impacting interest income, partially offset by lower interest expense .
Non-interest income softened sequentially: -$0.1M QoQ due primarily to lower gains on other real estate owned (OREO), indicating less tailwind from discrete items relative to Q4 .

Metric	Q3 2024	Q4 2024	Q1 2025
EPS ($)	$0.66	$0.66	$0.77
Net Income ($MM)	$4.574	$4.597	$5.383
Net Interest Income ($MM)	$14.327	$15.346	$15.294
Non-interest Income ($MM)	$3.783	$3.522	$3.463
Investment Securities Gains/Losses ($MM)	$0.008	$0.003	$(0.002)
Efficiency Ratio (%)	66.23%	68.48%	66.64%
NIM (FTE, %)	3.36%	3.55%	3.67%

Metric	Q3 2024	Q4 2024	Q1 2025
Total Assets ($B)	$1.810	$1.825	$1.883
Loans Held for Investment ($B)	$1.467	$1.466	$1.470
Deposits ($B)	$1.504	$1.533	$1.544
Total Stockholders’ Equity ($MM)	$146.474	$149.547	$153.411
Book Value/Share ($)	$20.91	$21.36	$21.97

KPI	Q3 2024	Q4 2024	Q1 2025
ROAA (%)	1.00%	1.00%	1.20%
ROAE (%)	12.87%	12.49%	14.29%
Yield on Loans (FTE, %)	5.83%	5.86%	5.89%
Avg Cost of Deposits (%)	2.74%	2.49%	2.44%
NPLs to Total Loans (%)	0.28%	0.19%	0.17%
NPAs to Loans (%)	0.58%	0.29%	0.21%
Allowance to Total Loans (%)	1.50%	1.50%	1.48%
Net Charge-offs to Avg Loans (%)	0.04%	0.01%	0.00%

Metric	Q1 2025 Consensus	Q1 2025 Actual
EPS ($)	N/A*	$0.77
Revenue ($MM)	N/A*	$19.095*

Values retrieved from S&P Global.*

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q2 2025 (payable Jul 1)	$0.19 (approved Jan 22, 2025)	$0.20 (approved Apr 30, 2025)	Raised
Share Repurchase Capacity	As of Mar 31, 2025	$3.9M remaining (Dec 31, 2024)	$3.5M remaining (Mar 31, 2025)	Reduced (due to Q1 buybacks)
Revenue / Margin / OpEx / Tax Rate Guidance	FY25 / Q2 2025	Not provided	Not provided	Maintained (no formal guidance)

Note: The Q1 2025 earnings call transcript was not available; themes are derived from official press releases.

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Net interest margin and deposit costs	NIM improved to 3.36% in Q3; to 3.55% in Q4; avg deposit cost fell to 2.74% in Q3 and 2.49% in Q4	NIM rose to 3.67%; avg deposit cost declined to 2.44%	Improving margin; easing funding costs
Asset quality	Q3 NPAs to loans 0.58%; Q4 0.29%; allowance ~1.50%	NPAs to loans 0.21%; allowance 1.48%; provision release of $0.3M	Strengthening credit metrics
Non-interest income drivers	Q3 boosted by BOLI and OREO gains; Q4 elevated but moderating	Q1 slightly lower QoQ due to fewer OREO gains; BOLI higher YoY	Less reliance on discrete gains
Capital management	Q3: repurchases ($3.9M remaining); Q4: maintained well-capitalized ratios	Q1: repurchased shares, $3.5M remaining; dividend increased; total risk-based capital 14.94%	Ongoing shareholder returns
Geographic expansion	Q4: Overland Park, KS branch approval (Feb 2025)	No new Q1 update in PRs	Strategic expansion underway

“Our strong first quarter aligns with our focus on growing core relationships and improving financial results. We continue to enhance our products, operations and resources to serve the customers in our communities and collectively achieve success.” — Brent M. Giles, CEO .
Prior quarter context: “We are pleased with our fourth quarter and full-year results as they reflect our commitment to improving core operational efficiency and income…building a foundation upon which we can grow.” — Brent M. Giles .

The Q1 2025 earnings call transcript is not available; no Q&A content, guidance clarifications, or tone shifts were published in transcript form. Themes and data points above reflect official press releases and Form 8-K .

S&P Global consensus appeared unavailable for Q1 2025 EPS and revenue for HWBK; thus, no beat/miss determination versus Street is possible (values retrieved from S&P Global).*
Actual EPS delivered was $0.77; operational metrics (NIM, efficiency, credit quality) improved sequentially and YoY, which likely supports upward bias in operating assumptions despite lack of formal Street estimates .

Margin expansion and funding cost relief: FTE NIM reached 3.67% while avg deposit cost fell to 2.44%, supporting earnings power if deposit mix and yields hold .
Efficiency gains: ratio improved to 66.64% YoY, reflecting cost discipline and mix benefits; monitoring sustainability is key .
Credit quality inflection: NPAs-to-loans at 0.21% and provision release indicate healthier portfolio; watch for normalization of charge-offs in a slowing macro .
Capital return accelerates: dividend lifted to $0.20 and buybacks executed with $3.5M remaining; near-term support for total shareholder return and potential stock reaction .
Loan growth remains subdued YoY: despite $4.2M QoQ increase, loans are down $48.5M YoY; medium-term thesis hinges on re-accelerating core lending in target markets .
Less OREO-driven noninterest income tailwind: sequential decline underscores need for recurring fee growth and core banking revenue mix .
Tactical positioning: In absence of Street coverage, trade the trajectory—continued NIM expansion, deposit mix improvement, and strong capital ratios (total risk-based capital 14.94%) are core drivers to watch into Q2/Q3 .