Business
Hawthorn Bancshares Reports Results for the Three and Six Months Ended June 30, 2022
Second Quarter 2022 Highlights Net income of $4.5 million, or $0.66 per diluted share Net interest margin, fully taxable equivalent ("FTE") of 3.64% Return on
About this update from Hawthorn Bancshares, Inc.
[{"type":"text","content":"Second Quarter 2022 Highlights Net income of $4.5 million, or $0.66 per diluted share Net interest margin, fully taxable equivalent (\"FTE\") of 3.64% Return on average assets and equity of 1.04% and 14.00%, respectively Loans increased $93.9 million, or 7.0%, compared to the linked first quarter 2022 (“linked quarter”) Deposits increased $74.7 million, or 5.1%, compared to the linked quarter JEFFERSON CITY, Mo., July 27, 2022 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company” or “HWBK”) reported net income of $4.5 million for the second quarter 2022, a decrease of $2.1 million compared to the linked quarter 2022 and an decrease of $0.4 million from the second quarter 2021 (the \"prior year quarter\"). Earnings per diluted share (“EPS”) was $0.66 for the second quarter 2022 compared to $0.97 and $0.71 for the linked quarter and prior year quarter, respectively. Net income and EPS for the second quarter 2022 decreased from the linked quarter primarily due to the recognition of negative provision expense in the first quarter as a result of releasing significant specific loan loss reserves totaling $2.8 million, and which significantly increased reported net income in the first quarter. Chairman David T. Turner commented, \"Hawthorn Bank continued to perform very well in the second quarter of 2022. Hawthorn Bancshares reported $4.5 million of net income and $0.66 in earnings per share for the second quarter. While we had good deposit growth of almost $75 million in the second quarter, or 5.1% compared to the first quarter, it was completely outpaced by our loan growth. We achieved loan growth of almost $94 million in the quarter, or 7.0% growth compared to the first quarter. At the same time, we were able to expand the net interest margin by a full 14 basis points to 3.64% as compared to the first quarter. Of course, such strong loan growth required us to supplement our allowance for loan reserve by $1.2 million in the second quarter. At 1.08%, our allowance for loan losses to total loans ratio is consistent with pre-pandemic levels. Asset quality remains strong as evidenced in the steady decline in non-performing loans as a percentage of total loans. As mentioned in the first quarter, rising interest rates had and will continue to have negative impacts on our mortgage loan production and the overall profi...