Business
Hawthorn Bancshares Reports Results for the Three and Six Months Ended June 30, 2023
Second Quarter 2023 Highlights Net income of $2.5 million, or $0.36 per diluted shareNet interest margin, fully taxable equivalent ("FTE") of 3.19%Return on
About this update from Hawthorn Bancshares, Inc.
[{"type":"text","content":"Second Quarter 2023 Highlights Net income of $2.5 million, or $0.36 per diluted shareNet interest margin, fully taxable equivalent (\"FTE\") of 3.19%Return on average assets and equity of 0.54% and 7.99%, respectivelyLoans increased $21.1 million, or 1.4%, compared to the linked first quarter 2023 (“linked quarter”)Deposits decreased $64.7 million, or 4.0%, compared to the linked quarter JEFFERSON CITY, Mo., July 26, 2023 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company” or “HWBK”) reported net income of $2.5 million for the second quarter 2023, a decrease of $0.7 million compared to the linked quarter and a decrease of $1.9 million from the second quarter 2022 (the \"prior year quarter\"). Earnings per diluted share (“EPS”) was $0.36 for the second quarter 2023 compared to $0.47 and $0.64 for the linked quarter and prior year quarter, respectively. Net income and EPS for the second quarter 2023 decreased from the linked quarter primarily due to the recognition of a write-down on other real estate owned properties with no additional provision expense for credit losses being required in the current quarter compared to $0.7 million in the linked quarter. Brent Giles, Chief Executive Officer of Hawthorn Bancshares Inc. commented, “Absent the write-down on other real estate, our performance was in line with the first quarter. As we continue to navigate this challenging economic environment, we will be focused on stability and prudent financial management. For the second quarter of 2023, we delivered $2.5 million of net income, equivalent to $0.36 per diluted share. Although this represents a decrease of $0.7 million of net income compared to the linked quarter, it is important to note that this reduction was primarily due to the recognition of a $1.8 million write-down on other real estate owned properties with no additional provision expense for credit losses being required in the current quarter compared to $0.7 million in the linked quarter. Asset quality remains strong as evidenced by improvement in our non-performing loans to total loans ratio. During the second quarter, we reclassified $15.0 million in loans from non-accrual to accruing status. Furthermore, our loan portfolio saw an increase of $21.1 million, or 1.4%, compared to the linked quarter. While deposits decreased by $64.7 million, or 4.0%,...