Business
Hawthorn Bancshares Reports Results for Three and Nine Months Ended September 30, 2021
Third Quarter 2021 Results Net income of $5.8 million, or $0.88 per diluted shareNet interest margin, fully taxable equivalent ("FTE") of 3.78%Return on
About this update from Hawthorn Bancshares, Inc.
[{"type":"text","content":"Third Quarter 2021 Results Net income of $5.8 million, or $0.88 per diluted shareNet interest margin, fully taxable equivalent (\"FTE\") of 3.78%Return on average assets and equity of 1.33% and 16.49%, respectivelyLoans decreased $11 million, or 0.9%, compared to the linked quarterDeposits increased $30 million, or 2.2%, compared to the linked quarter JEFFERSON CITY, Mo., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Hawthorn Bancshares Inc. (NASDAQ: HWBK), (the “Company” or “HWBK”) reported net income of $5.8 million for the third quarter 2021, an increase of $0.9 million compared to the linked second quarter 2021 (“linked quarter”) and an increase of $0.8 million from the third quarter 2020 (the “prior year quarter”). Earnings per diluted share (“EPS”) was $0.88 for the third quarter 2021 compared to $0.74 for both the linked quarter and prior year quarter. Net income and EPS for the third quarter 2021 increased from the linked quarter primarily due to higher net interest income driven by higher Small Business Payroll Protection Program (\"PPP\") loan fee income, partially offset by a decrease in gain on sale of real estate mortgages, described in more detail below. Chairman David T. Turner commented, “Hawthorn Bank continues to be well-positioned during this economic recovery, and once again delivered strong financial performance in the third quarter. Contributing to this strong overall financial performance was the acceleration of PPP loan fee income as a result of our borrowers electing to pursue loan forgiveness in accordance with the CARES Act. This acceleration, while contributing almost $1.6 million in higher earnings as compared to the linked quarter, did result in the forgiveness of $24 million in loans during the quarter. Excluding the impact of PPP loans on our portfolio, we achieved $12.6 million or 1.0% loan growth in the third quarter as compared to the linked quarter. At the end of the quarter, we had $1.8 million in PPP loan fees which will be recognized in future periods as the remaining $26 million in PPP loans are forgiven. Our overall asset quality is improving. We continue to closely monitor our portfolio of non-performing loans and have seen some signs of strengthening within certain credits, and no further degradation so we remain very optimistic. Our mortgage lending team continues to perform well. While we did see...