Hawthorn Bancshares, Inc. · NASDAQ:HWBK
Hawthorn Bancshares — Shareholder Meeting (June 2024)
17 slides from Hawthorn Bancshares's shareholder meeting presentation, Jun 4, 2024
Slide 1: Annual Shareholders Meeting June 4, 2024
Annual Shareholders Meeting June 4, 2024 www.HawthornBancshares.com NASDAQ: HWBK
Slide 2: Forward-Looking Statements
Forward-Looking Statements FORWARD-LOOKING STATEMENTS. This report contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, strategy, future performance and business of Hawthorn Bancshares, Inc., and its subsidiaries (collectively
Slide 3: Board of Directors
Board of Directors DAVID TURNER BRENT GILES DR. GUS WETZEL, III Director, Chairman Director, CEO Physician/Surgeon 45 years with Hawthorn, Retired 1 year with Hawthorn Advisory Director since 1974 Director since 1997 Director since 2023 KATHLEEN BRUEGENHEMKE, CPA GREGG BEXTEN CHARLES DUDENHOEFFER Di
Slide 4: Executive Leadership Team
Executive Leadership Team BRENT GILES KATHLEEN BRUEGENHEMKE, CPA Chief Executive Officer Executive Vice President, 1 year with Hawthorn Chief Risk Officer & Secretary Director since 2023 32 years with Hawthorn Director since 2017 GREGG BEXTEN JOHN BOWERS President Executive Vice President 26 years w
Slide 5: Franchise History
Franchise History 2019 Expanded Columbia LPO to 2003 Full-Service Bank 1997 Acquired: Acquired: Missouri State Bank (Springfield) $32MM Assets Union State Bank & Trust 2007 2020 $144MM Assets 2000 Rebranded all locations Established: Acquired: Mortgage Group Osage Valley Bank $55MM Assets 2005 Citiz
Slide 6: Strategic Initiatives
Strategic Initiatives 1 ONEHAWTHORN 5 BRAND IDENTITY 2 LINE OF BUSINESS FOCUS 6 CAPITAL MANAGEMENT 3 OPERATIONAL EFFICIENCY & EFFECTIVENESS 7 RISK PROFILE AND CREDIT DISCIPLINE 4 M&A READINESS 6
Slide 7: Franchise Overview and Financial Highlights
Franchise Overview and Financial Highlights Financial Highlights ($ in millions) 1Q • Established in 1865 As of the period ended 2019 2020 2021 2022 2023 2024 (1) • Headquartered in Jefferson City, Missouri • 17 Branches and 1 LPO Total Assets Balance Sheet $ 1,493 $ 1,734 $ 1,832 $ 1,924 $ 1,875 $
Slide 8: Shareholder Vote
Shareholder Vote • Elect four Class II directors to hold office for a term expiring at our 2027 annual meeting of shareholders and until such director's successor is duly elected and qualified or until such director's earlier resignation or removal; • Ratify the appointment of FORVIS LLP as the Comp
Slide 9: Supplemental Information
Supplemental Information 9
Slide 10: Net Interest Margin (NIM) and Key Drivers
Net Interest Margin (NIM) and Key Drivers NIM (Tax Equivalent Yield) YIELD ON LOANS COST OF FUNDS YIELD ON INVESTMENTS AVAILABLE-FOR-SALE 10
Slide 11: Comparative Income Statement
Comparative Income Statement Years Ended December 31, Three Months Ended March 31, (dollars in thousands) 2023 2022 Change 2024 2023 Change Net Interest Income $59,142 $58,763 $379 $14,748 $13,948 $800 Provision for Credit Losses 2,340 (900) 3,240 (230) 680 (910) Non-Interest Income 7,536 13,978 (6,
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition LOAN PORTFOLIO COMPOSITION Q1 2024 (Avg) LOAN BALANCES • Loan composition is predominantly commercial real estate (50%) followed by residential real estate (24%). • 0.2% growth in average loans for 1Q 2024 compared to 1Q 2023. • Loan yields have continued to increase due t
Slide 13: Deposit Composition
Deposit Composition DEPOSIT COMPOSITION Q1 2024 DEPOSIT BALANCES AND COST OF TOTAL DEPOSITS (Avg) Savings Accounts 15% Non-Interest CD's Bearing Demand 22% 25% Avg Deposit Balances Cost of Total Deposits Money Market Other Interest- 15% Bearing Deposits • Deposit composition has changed between non-
Slide 14: Investment Portfolio Composition
Investment Portfolio Composition OVERVIEW AS OF MARCH 31, 2024 • $183.5 million total investments ◦ 100% available-for-sale • Average Tax Effective Yield of 3.2% • Effective duration of 5.5 years • Scheduled principal cash flows over the next 36 months projected to be 24% of portfolio • As a % of To
Slide 15: Asset Quality and Reserve Level
Asset Quality and Reserve Level OVERVIEW NPAS + ORE / ASSETS • Historically solid asset quality and a strong reserve position. • The increase in the reserve for credit losses in 2023 resulted from the adoption of the CECL methodology. NET CHARGE-OFF’s / AVERAGE LOANS RESERVES / LOANS 15
Slide 16: Capital Position
Capital Position REGULATORY CAPITAL AS OF MARCH 31, 2024 CAPITAL HIGHLIGHTS • Consistent payment history of quarterly cash dividend. • Repositioning of the balance sheet in 2023 did not significantly impact capital. Common Equity • Hawthorn Bank's capital ratios continue to exceed Tier 1 the regulat
Slide 17: Total Shareholder Return
Total Shareholder Return STOCK SUMMARY (As of MARCH 31, 2024) TOTAL RETURN Ticker HWBK Exchange NASDAQ Stock Price $20.43 Market capitalization (in millions) $143.4 Dividend Yield 3.4 % Average Daily Volume (3 months) Average daily volume (shares) 18,447 Average daily volume $419,669 52-Week High an
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