Business
Hawthorn Bancshares Reports Results for Three and Six Months Ended June 30, 2021
Second Quarter 2021 Results Net income of $4.9 million, or $0.74 per diluted shareNet interest margin, fully taxable equivalent ("FTE") of 3.40%Return on
About this update from Hawthorn Bancshares, Inc.
[{"type":"text","content":"Second Quarter 2021 Results Net income of $4.9 million, or $0.74 per diluted shareNet interest margin, fully taxable equivalent (\"FTE\") of 3.40%Return on average assets and equity of 1.14% and 14.64%, respectivelyLoans increased $18 million, or 1.4%, compared to the linked quarterDeposits decreased $13 million, or 0.9%, compared to the linked quarter JEFFERSON CITY, Mo., July 29, 2021 (GLOBE NEWSWIRE) -- Hawthorn Bancshares Inc. (NASDAQ: HWBK), (the “Company” or “HWBK”) reported net income of $4.9 million for the second quarter 2021, a decrease of $0.9 million compared to the linked first quarter 2021 (“linked quarter”) and an increase of $1.6 million from the second quarter 2020 (the “prior year quarter”). Earnings per diluted share (“EPS”) was $0.74 for the second quarter 2021 compared to $0.88 and $0.49 for the linked quarter and prior year quarter, respectively. Net income and EPS for the second quarter 2021 decreased from the linked quarter due in part to lower net interest income driven by lower PPP loan fee income, in addition to higher provision expense, described in more detail below. Chairman David T. Turner commented, “In the second quarter we started to see some indications of a return to normalcy since the beginning of the pandemic with our customers across the bank. For this we are very encouraged. Hawthorn Bank continues to be well positioned during this recovery. Our overall asset quality remains very strong. We continue to closely monitor our portfolio of non-performing loans which we saw spike last year as a result of the pandemic. We saw stronger organic loan growth during the quarter. Excluding the impact of PPP loans on our portfolio, we achieved $24.4 million or 2.0% loan growth in the second quarter as compared to the linked quarter. Speaking of the PPP loan programs, we successfully closed over $47 million in new loans in Round 2 and this is in addition to over $88 million we accomplished during Round 1. Approximately 93% of the PPP Round 1 loans were forgiven and the related fees recognized by the end of the second quarter. At the end of the second quarter, we had $3.8 million in PPP loan fees, primarily from Round 2 which will be recognized in future periods as the loans are forgiven.” Turner continued, “As we transition from unprecedented and challenging times to a more familiar and normal state, we ...