Hawthorn Bancshares Revises Q1 2026 Earnings After Accounting Adjustment

What Happened
Hawthorn Bancshares, Inc. (HWBK) filed an 8-K/A on May 6, 2026 to revise a previously furnished press release (originally filed April 29, 2026) after identifying an accounting adjustment during quarter‑end close procedures. The company concluded that contractual language on a March 2026 property sale (proceeds $1.9 million) constituted continuing involvement, so it cannot apply sale‑leaseback accounting as of March 31, 2026. The $1.9 million will be recorded as a financing obligation rather than a sale gain; the originally recorded $1.2 million gain is therefore not recognized for Q1 2026.

Key Details

• The adjustment was identified during normal quarter‑end review and recorded before issuance of the Form 10‑Q for the quarter ended March 31, 2026.
• $1.9 million of sale proceeds will be reflected as a financing obligation instead of a gain for Q1 2026.
• The change reduced net income by $1.1 million and reduced earnings per share by $0.15 for the quarter ended March 31, 2026.
• Hawthorn furnished a revised earnings release as Exhibit 99.1 (dated May 6, 2026) and posted it to its Investor Relations website; any gain will be recognized in a future period only if contractual obligations are resolved.

Why It Matters
This is an accounting reclassification that lowers reported profitability and EPS for Q1 2026, which investors use to assess quarterly results and trends. The underlying transaction remains; the change affects timing and presentation of the proceeds (liability vs. gain). The company says the correction was made prior to filing its 10‑Q, so investors should review the revised press release and upcoming Form 10‑Q for the updated financial statements and notes.