Hawthorn Bancshares Reports Second Quarter 2024 Results
Hawthorn Bancshares (NASDAQ: HWBK) reported second quarter 2024 net income of $4.6 million and earnings per diluted share (EPS) of $0.66, an improvement from the first quarter. Key highlights include:
- Net interest margin (FTE) of 3.33%
- Return on average assets and equity of 1.02% and 13.75%, respectively
- Loans decreased 1.3% to $1.5 billion
- Deposits increased 1.5% to $1.55 billion
- Non-performing loans to total loans ratio of 0.30%
- Book value increased 1.8% to $19.76 per share
The company maintained strong credit quality and a 'well capitalized' regulatory position. A quarterly cash dividend of $0.19 per share was approved for Q3 2024.
Hawthorn Bancshares (NASDAQ: HWBK) ha riportato un reddito netto del secondo trimestre 2024 di 4,6 milioni di dollari e un utile per azione diluita (EPS) di 0,66 dollari, un miglioramento rispetto al primo trimestre. I punti salienti includono:
- Margine di interesse netto (FTE) del 3,33%
- Rendimento medio degli attivi e del capitale rispettivamente dell'1,02% e del 13,75%
- I prestiti sono diminuiti dell'1,3% a 1,5 miliardi di dollari
- I depositi sono aumentati dell'1,5% a 1,55 miliardi di dollari
- Il rapporto prestiti non performanti su prestiti totali è dello 0,30%
- Valore contabile aumentato dell'1,8% a 19,76 dollari per azione
L'azienda ha mantenuto una forte qualità del credito e una posizione regolamentare 'ben capitalizzata'. È stato approvato un dividendo in contante trimestrale di 0,19 dollari per azione per il terzo trimestre del 2024.
Hawthorn Bancshares (NASDAQ: HWBK) reportó un ingreso neto de 4.6 millones de dólares en el segundo trimestre de 2024 y un beneficio por acción diluida (EPS) de 0.66 dólares, una mejora con respecto al primer trimestre. Los aspectos más destacados incluyen:
- Margen de interés neto (FTE) del 3.33%
- Rendimiento sobre activos promedio y capital del 1.02% y 13.75%, respectivamente
- Los préstamos disminuyeron un 1.3% a 1.5 mil millones de dólares
- Los depósitos aumentaron un 1.5% a 1.55 mil millones de dólares
- La relación de préstamos no funcionando sobre préstamos totales es del 0.30%
- El valor contable aumentó un 1.8% a 19.76 dólares por acción
La empresa mantuvo una sólida calidad crediticia y una posición regulatoria 'bien capitalizada'. Se aprobó un dividendo en efectivo trimestral de 0.19 dólares por acción para el tercer trimestre de 2024.
호소른 뱅크셰어스(Hawthorn Bancshares)(NASDAQ: HWBK)는 2024년 2분기 순이익 460만 달러와 희석주당순이익(EPS) 0.66달러를 보고했으며, 이는 1분기보다 개선된 수치입니다. 주요 하이라이트는 다음과 같습니다:
- 순이자 마진(FTE) 3.33%
- 평균 자산 및 자본 수익률 각각 1.02% 및 13.75%
- 대출은 1.3% 감소해 15억 달러
- 예금은 1.5% 증가해 15.5억 달러
- 총 대출 대비 부실 대출 비율 0.30%
- 주당 장부가치 1.8% 증가해 19.76달러
회사는 강력한 신용 품질과 '양호한 자본비율'의 규제 위치를 유지했습니다. 2024년 3분기를 위한 주당 0.19달러의 분기 현금 배당금이 승인되었습니다.
Hawthorn Bancshares (NASDAQ: HWBK) a annoncé un revenu net de 4,6 millions de dollars pour le deuxième trimestre 2024 et un bénéfice par action diluée (EPS) de 0,66 dollar, une amélioration par rapport au premier trimestre. Les principaux points forts incluent :
- Marge d'intérêt nette (FTE) de 3,33%
- Rendement sur les actifs et les capitaux propres moyens de 1,02% et 13,75%, respectivement
- Les prêts ont diminué de 1,3 % pour atteindre 1,5 milliard de dollars
- Les dépôts ont augmenté de 1,5 % pour atteindre 1,55 milliard de dollars
- Ratio des prêts non performants par rapport aux prêts totaux de 0,30%
- Valeur comptable augmentée de 1,8 % à 19,76 dollars par action
L'entreprise a maintenu une solide qualité de crédit et une position réglementaire "bien capitalisée". Un dividende en espèces trimestriel de 0,19 dollar par action a été approuvé pour le troisième trimestre 2024.
Hawthorn Bancshares (NASDAQ: HWBK) meldete einen Nettogewinn von 4,6 Millionen USD im 2. Quartal 2024 und ein Ergebnis je verwässerter Aktie (EPS) von 0,66 USD, was eine Verbesserung gegenüber dem ersten Quartal darstellt. Zu den wichtigsten Punkten gehören:
- Nettogewinnmarge (FTE) von 3,33%
- Rendite auf das durchschnittliche Vermögen und Eigenkapital von 1,02% bzw. 13,75%
- Die Kredite sanken um 1,3% auf 1,5 Milliarden USD
- Die Einlagen stiegen um 1,5% auf 1,55 Milliarden USD
- Verhältnis von notleidenden Krediten zu Gesamtkrediten von 0,30%
- Buchwert stieg um 1,8% auf 19,76 USD pro Aktie
Das Unternehmen hielt eine starke Kreditqualität und eine 'gut kapitalisierte' regulatorische Position aufrecht. Eine vierteljährliche Bardividende von 0,19 USD pro Aktie wurde für das 3. Quartal 2024 genehmigt.
- Net income improved by $0.2 million and EPS by $0.03 compared to the previous quarter
- Return on average assets and equity increased to 1.02% and 13.75%, respectively
- Deposits grew by $22.4 million or 1.5% compared to the prior quarter
- Credit quality remained strong with non-performing loans to total loans ratio of 0.30%
- Book value per share increased by 1.8% to $19.76
- Efficiency ratio improved to 66.24% from 70.78% in the prior quarter
- Non-interest income increased by $1.0 million or 32.3% from the prior quarter
- Loans decreased by $20.3 million or 1.3% compared to the prior quarter
- Net interest margin (FTE) decreased to 3.33% from 3.39% in the prior quarter
- Net loan charge-offs of $2.0 million in the second quarter, compared to $0.1 million in the prior quarter
- Average cost of deposits increased to 2.69% from 2.61% in the prior quarter
Insights
Hawthorn Bancshares' Q2 2024 results show modest improvement, with net income increasing by
- Net interest margin (FTE) of
3.33% , slightly down from3.39% in Q1 but up from3.19% in Q2 2023 - Return on average assets of
1.02% and return on equity of13.75% , both showing improvement - Efficiency ratio improved to
66.24% from70.78% in Q1 and80.55% in Q2 2023
However, there are some areas of concern:
- Loans decreased by
1.3% quarter-over-quarter and4.1% year-over-year - Net interest income declined by
$0.6 million from Q1 2024 - Non-interest bearing deposits as a percentage of total deposits decreased to
25.9% from28.4% a year ago
The bank's credit quality remains strong with non-performing loans to total loans at
Overall, while Hawthorn Bancshares shows some resilience in a challenging banking environment, the declining loan portfolio and pressure on net interest income warrant close monitoring by investors.
Hawthorn Bancshares' Q2 2024 results reflect the broader challenges facing regional banks in the current economic environment. The bank's performance shows both strengths and potential vulnerabilities:
Strengths:
- Improved profitability with net income up
3.9% quarter-over-quarter and81.6% year-over-year - Strong credit quality with non-performing loans at just
0.30% of total loans - Solid capital position with a total risk-based capital ratio of
14.30%
Challenges:
- Declining loan portfolio, down
1.3% quarter-over-quarter and4.1% year-over-year - Pressure on net interest margin, which decreased to
3.33% from3.39% in Q1 - Increasing cost of deposits, up to
2.69% from2.07% a year ago
The sale of the mortgage servicing rights portfolio indicates a strategic shift towards core banking activities. This move, coupled with the focus on expense management (as evidenced by the improving efficiency ratio), suggests that management is adapting to the challenging interest rate environment.
However, the declining loan portfolio is a concern, as it may impact future earnings growth. The bank will need to find new avenues for loan growth or risk seeing its earnings potential diminish over time.
The increase in time deposits at the expense of non-interest bearing deposits could put further pressure on the net interest margin in coming quarters. This shift in deposit mix is a trend seen across the banking industry as customers seek higher yields in the current high-rate environment.
In conclusion, while Hawthorn Bancshares is navigating the current banking landscape relatively well, it faces headwinds that could impact its growth trajectory. The bank's ability to grow its loan portfolio and manage its deposit costs will be important for maintaining and improving profitability in the coming quarters.
JEFFERSON CITY, Mo., July 30, 2024 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc. (NASDAQ: HWBK), (the “Company”), the bank holding company for Hawthorn Bank, reported second quarter 2024 net income of
Second Quarter 2024 Results
- Net income improved
$0.2 million and EPS improved$0.03 per share from the first quarter 2024 (the "prior quarter”) - Net interest margin, fully taxable equivalent ("FTE") of
3.33% - Return on average assets and equity of
1.02% and13.75% , respectively - Loans decreased
$20.3 million , or1.3% , compared to the prior quarter - Investments increased
$1.4 million , or0.7% , compared to the prior quarter - Deposits increased
$22.4 million , or1.5% , compared to the prior quarter, while other borrowings decreased$9.9 million , or6.2% , compared to the prior quarter - Credit quality remained strong with non-performing loans to total loans of
0.30% - Book Value increased to
$19.76 , an increase of1.8% , compared to the end of the prior quarter
Brent Giles, Chief Executive Officer of Hawthorn Bancshares, Inc. commented, “In the second quarter, we continued to see a positive impact from focusing on the core business of the Bank. The sale of our mortgage servicing rights portfolio closed during the quarter, and we remain committed to expanding our products and services to our core customer base, while managing our operating expenses.”
Financial Summary
(unaudited)
| June 30, | March 31, | June 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Balance sheet information: | ||||||||||||
| Total assets | $ | 1,847,810 | $ | 1,833,760 | $ | 1,900,709 | ||||||
| Loans held for investment | 1,498,504 | 1,518,853 | 1,563,206 | |||||||||
| Investment securities | 191,159 | 189,741 | 260,714 | |||||||||
| Deposits | 1,550,250 | 1,527,874 | 1,543,270 | |||||||||
| Total stockholders’ equity | $ | 138,241 | $ | 136,620 | $ | 126,473 | ||||||
| Key ratios and per share data: | ||||||||||||
| Book value per share (QTR) | $ | 19.76 | $ | 19.43 | $ | 17.97 | ||||||
| Market price per share (QTR) | $ | 19.80 | $ | 20.43 | $ | 17.95 | ||||||
| Diluted earnings (loss) per share (QTR) | $ | 0.66 | $ | 0.63 | $ | 0.36 | ||||||
| Net interest margin (FTE) (QTR) | 3.33 | % | 3.39 | % | 3.19 | % | ||||||
| Efficiency ratio (QTR) | 66.24 | % | 70.78 | % | 80.55 | % | ||||||
Financial Results for the Quarter and Six Months Ended June 30, 2024
Earnings
Net income for the second quarter 2024 was
Net income for the six months ended June 30, 2024 was
Net Interest Income and Net Interest Margin
Net interest income for the second quarter 2024 was
Interest income increased
The yield earned on average loans held for investment was consistent at
The average cost of deposits was
Non-interest Income
Total non-interest income for the second quarter 2024 was
The increase in the current quarter compared to the prior quarter was primarily due to an increase in earnings on bank owned life insurance and the recognition of a gain on sale on foreclosed property.
Non-interest Expense
Total non-interest expense for the second quarter 2024 was
The second quarter efficiency ratio was
Loans
Loans held for investment decreased
Investments
Investments increased
Asset Quality
Non-performing loans totaled
In the second quarter 2024, the Company had net loan charge-offs of
The Company recorded a
The allowance for credit losses at June 30, 2024 was
Deposits
Total deposits at June 30, 2024 were
Capital
The Company maintains its “well capitalized” regulatory capital position. At June 30, 2024, capital ratios were as follows: total risk-based capital to risk-weighted assets
Pursuant to the Company's 2019 Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Company repurchased 51,692 common shares under the repurchase plan during the first six months of 2024 at an average cost of
During the third quarter of 2024, the Company's Board of Directors approved a quarterly cash dividend of
[Tables follow]
FINANCIAL SUMMARY
(unaudited)
| Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| Statement of income information: | 2024 | 2024 | 2023 | |||||||||
| Total interest income | $ | 23,556 | $ | 24,052 | $ | 21,927 | ||||||
| Total interest expense | 9,384 | 9,304 | 7,725 | |||||||||
| Net interest income | 14,172 | 14,748 | 14,202 | |||||||||
| Provision for (release of) credit losses on loans and unfunded commitments | 456 | (230 | ) | — | ||||||||
| Non-interest income | 3,995 | 3,019 | 1,596 | |||||||||
| Investment securities (losses) gains, net | (15 | ) | — | 7 | ||||||||
| Non-interest expense | 12,034 | 12,575 | 12,725 | |||||||||
| Pre-tax income | 5,662 | 5,422 | 3,080 | |||||||||
| Income taxes | 1,033 | 966 | 531 | |||||||||
| Net income | $ | 4,629 | $ | 4,456 | $ | 2,549 | ||||||
| Earnings per share: | ||||||||||||
| Basic: | $ | 0.66 | $ | 0.63 | $ | 0.36 | ||||||
| Diluted: | $ | 0.66 | $ | 0.63 | $ | 0.36 | ||||||
| Six Months Ended | ||||||||||||
| June 30, | ||||||||||||
| Statement of income information: | 2024 | 2023 | ||||||||||
| Total interest income | $ | 47,608 | $ | 42,860 | ||||||||
| Total interest expense | 18,688 | 14,710 | ||||||||||
| Net interest income | 28,920 | 28,150 | ||||||||||
| Provision for credit losses on loans and unfunded commitments | 227 | 680 | ||||||||||
| Non-interest income | 7,015 | 4,778 | ||||||||||
| Investment securities (losses) gains, net | (15 | ) | 15 | |||||||||
| Non-interest expense | 24,609 | 25,202 | ||||||||||
| Pre-tax income | 11,084 | 7,061 | ||||||||||
| Income taxes | 1,999 | 1,241 | ||||||||||
| Net income | $ | 9,085 | $ | 5,820 | ||||||||
| Earnings per share: | ||||||||||||
| Basic: | $ | 1.29 | $ | 0.83 | ||||||||
| Diluted: | $ | 1.29 | $ | 0.83 | ||||||||
FINANCIAL SUMMARY (continued)
(unaudited)
| June 30, | March 31, | June 30, | |||||||
| 2024 | 2024 | 2023 | |||||||
| Key financial ratios: | |||||||||
| Return on average assets (QTR) | 1.02 | % | 0.97 | % | 0.54 | % | |||
| Return on average common equity (QTR) | 13.75 | % | 13.12 | % | 7.99 | % | |||
| Net interest margin (FTE) (QTR) | 3.33 | % | 3.39 | % | 3.19 | % | |||
| Efficiency ratio (QTR) | 66.24 | % | 70.78 | % | 80.55 | % | |||
| Asset Quality Ratios: | |||||||||
| Allowance for credit losses to total loans | 1.47 | % | 1.56 | % | 1.42 | % | |||
| Non-performing loans to total loans (a) | 0.30 | % | 0.56 | % | 0.25 | % | |||
| Non-performing assets to loans | 0.54 | % | 0.69 | % | 0.66 | % | |||
| Non-performing assets to assets (a) | 0.44 | % | 0.57 | % | 0.54 | % | |||
| Allowance for credit losses on loans to | |||||||||
| non-performing loans (a) | 495.38 | % | 276.93 | % | 578.01 | % | |||
| Capital Ratios: | |||||||||
| Average stockholders' equity to average total assets (QTR) | 7.40 | % | 7.41 | % | 6.76 | % | |||
| Period-end stockholders' equity to period-end assets (QTR) | 7.48 | % | 7.45 | % | 6.65 | % | |||
| Total risk-based capital ratio | 14.30 | % | 13.92 | % | 13.99 | % | |||
| Tier 1 risk-based capital ratio | 12.94 | % | 12.51 | % | 12.51 | % | |||
| Common equity Tier 1 capital | 10.02 | % | 9.68 | % | 9.92 | % | |||
| Tier 1 leverage ratio | 10.94 | % | 10.71 | % | 10.46 | % | |||
| (a) Non-performing loans include loans 90-days past due and accruing and non-accrual loans. | |||||||||
About Hawthorn Bancshares
Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank of Jefferson City with locations in the Missouri communities of Kansas City, Lee's Summit, Liberty, Springfield, Independence, Columbia, Clinton, Osceola, Warsaw, Belton, Drexel, Harrisonville, and California.
Contact:
Hawthorn Bancshares, Inc.
Brent M. Giles
Chief Executive Officer
TEL: 573.761.6100
www.HawthornBancshares.com
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. Statements made in this press release that suggest the Company's or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.
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