Executive Summary

Q3 2025 EPS was $0.88 with net income of $6.1M; net interest margin (FTE) expanded to 3.97% (+8 bps QoQ) as asset yields rose and deposit costs remained contained; efficiency ratio improved YoY to 62.30% .
Loans grew $51.1M (+3.5% QoQ) and deposits rose $7.9M (+0.5% QoQ), while book value per share increased to $23.76 from $22.53 in Q2 .
Credit quality remained strong YoY (NPA/loans 0.48% vs 0.58% prior year) though NPAs rose vs Q2 due to one commercial relationship moving to non‑accrual; allowance covered 446% of NPLs .
Dividend maintained at $0.20/share (payable Jan 1, 2026); repurchase authorization $10M with $8.7M remaining as of 9/30/25; capital ratios well above “well‑capitalized” thresholds (Total RBC 14.90%) .
Street consensus for EPS and revenue via S&P Global was unavailable*; AP/Zacks noted “revenue net of interest expense” of $20.6M topped Street forecasts, indicating a favorable reaction catalyst beyond the bank’s core margin and loan growth momentum .

What Went Well and What Went Wrong

Margin expansion: Net interest margin (FTE) rose to 3.97% from 3.89% in Q2 and 3.36% YoY, driven by higher loan yields and lower deposit costs; CEO highlighted “continued core growth” and wealth management growth .
Balance sheet momentum: Loans +$51.1M QoQ (+3.5%) and deposits +$7.9M QoQ (+0.5%), supporting NII growth to $16.9M (+$0.7M QoQ, +$2.5M YoY) .
Capital and BVPS: Total risk‑based capital 14.90% with BVPS at $23.76 (+5.5% QoQ, +13.6% YoY); buyback capacity remained robust ($8.7M) .

NPAs ticked up QoQ: NPA/loans rose to 0.48% (from 0.35% in Q2) due to one commercial relationship moving to non‑accrual, though still improved YoY vs 0.58% .
Higher provision: Provision for credit losses was $0.4M vs a $0.1M release in Q2, modestly pressuring earnings trajectory despite stable EPS .
Non‑interest expense increased: Total non‑interest expense rose $0.6M QoQ (+4.5%) and $0.8M YoY (+6.9%), mainly salaries and benefits, partially offset by efficiency gains from margin expansion .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Diluted EPS ($)	$0.66	$0.77	$0.88	$0.88
Net Income ($USD Millions)	$4.57	$5.38	$6.10	$6.13
Net Interest Income ($USD Millions)	$14.33	$15.29	$16.14	$16.87
Non‑interest Income ($USD Millions)	$3.78	$3.46	$3.55	$3.72
Investment Securities Gains/(Losses) ($USD Millions)	$0.01	$0.00	$(0.00)	$0.11
Pre‑tax Income ($USD Millions)	$5.62	$6.60	$7.47	$7.49
Net Interest Margin (FTE, %)	3.36	3.67	3.89	3.97
Efficiency Ratio (%)	66.23	66.64	62.32	62.30

KPI / Balance Sheet	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Assets ($USD Millions)	$1,809.77	$1,883.42	$1,877.42	$1,932.11
Loans HFI ($USD Millions)	$1,466.75	$1,470.32	$1,462.90	$1,514.00
Deposits ($USD Millions)	$1,503.50	$1,543.89	$1,517.99	$1,525.92
Book Value per Share ($)	$20.91	$21.97	$22.53	$23.76
Avg Cost of Deposits (%)	2.74	2.44	2.35	2.36
Non‑interest Bearing Demand Deposits (% of total)	26.0	27.7	27.7	27.8
NPLs to Total Loans (%)	0.28	0.17	0.19	0.32
NPAs to Loans (%)	0.58	0.21	0.35	0.48
Allowance on Loans to NPLs (%)	539.52	885.01	781.24	446.02
Net Charge‑offs to Avg Loans (%)	0.17	0.00	0.01	0.01

Note: AP/Zacks reported “revenue net of interest expense” of $20.6M for Q3 2025, which topped Street forecasts .

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share ($)	Q4 2025 (payable Jan 1, 2026)	$0.20 (approved Jul 30, 2025)	$0.20 (approved Oct 29, 2025)	Maintained
Share Repurchase Availability ($USD Millions)	As of period end	$9.0 available (Jun 30, 2025)	$8.7 available (Sep 30, 2025)	Lower (repurchases executed)
Formal Revenue/EPS/Margin Guidance	Q3/Q4 2025	Not provided	Not provided	Maintained (no guidance)
Regulatory Capital (Total RBC %)	As of period end	15.12% (Q2)	14.90% (Q3)	Slightly lower (still well‑capitalized)

No Q3 2025 earnings call transcript was available on the company’s IR site; analysis below reflects press releases and 8‑K disclosures .

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Net Interest Margin	NIM improved to 3.67% (Q1) with focus on managing margin in competitive markets; rose to 3.89% in Q2 .	NIM expanded to 3.97% on higher loan yields and lower deposit costs .	Improving
Deposit Costs/Mix	Avg deposit cost 2.44% (Q1) and 2.35% (Q2); NIBD ~27.7% .	Avg deposit cost 2.36% with NIBD at 27.8% .	Stable
Loan Growth	Q1: modest growth; Q2: loans ‑$7.4M QoQ .	Loans +$51.1M QoQ (+3.5%) .	Positive inflection
Asset Quality	Q1/Q2 NPAs low (0.21%/0.35%); allowance coverage strong .	NPAs/loans 0.48% (one relationship to non‑accrual); coverage 446% .	Slight deterioration QoQ; strong coverage
Capital & Buybacks	Total RBC 14.94% (Q1); buyback program active .	Total RBC 14.90%; $8.7M buyback capacity remaining .	Stable
Wealth/Non‑interest	CEO: product/operations enhancements; non‑interest steady .	CEO: “growth in our wealth management group”; non‑interest +4.8% QoQ .	Improving

“I am pleased with our third quarter results as they reflect continued core growth. Our margin continued to expand, and we experienced growth in our wealth management group… The third quarter results reflect our focus on our strategic objectives which continues to create shareholder value.” — Brent M. Giles, CEO .
“Managing our net interest margin in highly competitive markets and controlling expenses were top initiatives during the quarter. Our strong results reflect the focus on these areas.” — Q2 CEO remarks .
“Our strong first quarter aligns with our focus on growing core relationships and improving financial results.” — Q1 CEO remarks .

No public Q3 2025 earnings call transcript was available; therefore, Q&A themes and any guidance clarifications were not accessible for analysis .

S&P Global consensus estimates for HWBK’s Q3 2025 EPS and revenue were unavailable*, limiting formal beat/miss assessment (EPS and revenue # of estimates not provided)*.
AP/Zacks reported “revenue net of interest expense” of $20.6M topped Street forecasts, indicating upside vs third‑party expectations outside SPGI coverage .

Metric	Q3 2025 Consensus	Actual
Primary EPS Consensus Mean	N/A*	$0.88
Revenue Consensus Mean ($USD Millions)	N/A*	AP/Zacks reported $20.6

Values retrieved from S&P Global*.

Margin expansion is the key driver: NIM up to 3.97% with loan yields rising and deposit costs steady, supporting NII growth and improved efficiency .
Balance sheet inflection: Loans grew +3.5% QoQ and deposits increased, with BVPS advancing to $23.76; supports tangible value accretion .
Credit quality watchpoint: NPAs rose QoQ due to a single commercial credit, but allowance coverage remains robust; monitor migration and charge‑off trends in Q4 .
Capital return intact: Dividend maintained at $0.20 and buyback capacity $8.7M; capital ratios “well‑capitalized” provide flexibility .
With SPGI estimate coverage limited*, the press/third‑party snapshot indicates revenue net of interest expense beat Street expectations, suggesting near‑term support for sentiment .
Near‑term trading: Focus on continued NIM expansion and loan growth vs any incremental provisioning; watch deposit beta and NIBD mix for durability .
Medium‑term thesis: Operating leverage from margin and wealth management growth, disciplined capital return, and strong capital ratios underpin a conservative community‑bank compounding story .