Business
Hawthorn Bancshares Reports Results for the Fourth Quarter and the Year Ended December 31, 2023
JEFFERSON CITY, Mo., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the holding company for Hawthorn Bank,
About this update from Hawthorn Bancshares, Inc.
[{"type":"text","content":"JEFFERSON CITY, Mo., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the holding company for Hawthorn Bank, reported fourth quarter net loss of $7.4 million, or loss per diluted share of $(1.05), and net income of $1.0 million, or earnings per diluted share (\"EPS\") of $0.14, for the year ended December 31, 2023. 2023 Results Net income of $1.0 million, or $0.14 per diluted shareNet interest margin, fully taxable equivalent (\"FTE\") of 3.29%Return on average assets and equity of 0.05% and 0.76%, respectivelyDeposits decreased $61.2 million, or 3.8%, compared to 2022 (\"prior year\")Loans increased $17.9 million, or 1.2%, compared to the prior yearThe Company sold $83.7 million in book value of investment securities, with an average yield of 1.57%, for an after-tax realized loss of $9.1 millionSignificant improvement in credit quality with non-performing loans to total loans decreasing to 0.42% compared to 1.23% in the prior year Fourth Quarter 2023 Results Net loss of $7.4 million, or $(1.05) per diluted shareNet interest margin (FTE) of 3.48%Return on average assets and equity of (1.57)% and (24.54)%, respectivelyDeposits decreased $9.5 million, or 0.6%, compared to the third quarter 2023 (\"linked quarter\")Continued strong credit quality with non-performing loans to total loans of 0.42% Brent Giles, Chief Executive Officer of Hawthorn Bancshares Inc. commented, “During the fourth quarter, several strategic decisions were made, which significantly impacted our financial results. These decisions align with our commitment to improving our balance sheet position, improved profitability, and concentration on our core lines of business. We repositioned our balance sheet by selling a portion of our investment portfolio, which allows us the ability to reinvest the proceeds into higher earning assets. In addition, we made a valuation adjustment related to the sale of our mortgage servicing rights and a write off of an investment in an account acquisition project that is not part of our strategy going forward. We also realized an increase of $1.5 million in provision for credit losses in the fourth quarter as a result of the downgrade of one commercial relationship.\" FINANCIAL SUMMARY (unaudited) $000, except per share data December 31, September 30, December 31Balance sheet information:2...