Hawthorn Bancshares Inc. (NASDAQ: HWBK), today reported consolidated financial results for the Company for the second quarter ended June 30, 2011.
Net income for the quarter was $1.4 million, compared to $0.8 million for the second quarter of 2010. Hawthorn earned $0.19 per diluted common share for the three months ended June 30, 2011, versus $0.06 for the second quarter of 2010 after deducting accrued dividends and accretion of $0.5 million on preferred stock issued to the U.S. Treasury under the Capital Purchase Program.
On a year to date basis, Hawthorn Bancshares generated net income of $2.4 million, up from $1.3 million for 2010. After deducting accrued dividends and accretion on preferred stock issued to the U.S. Treasury, income available to common shareholders was $1.4 million compared to $0.3 million for 2010. From a diluted earnings per common share basis, Hawthorn generated $0.29 for the six months ended June 30, 2011 compared to $0.06 per common share for the same period in 2010.
Operating ResultsNet Interest Income Net interest income for the quarter ended June 30, 2011 decreased 3.0% to $10.8 million from $11.1 million for the same period in 2010. The decrease is attributed to a lower volume of earning assets despite further strengthening of the Company’s net interest margin which increased from 3.88% for the second quarter of 2010 to 3.95% for the second quarter of 2011. Non-Interest Income and Expense Non-interest income for the three months ended June 30, 2011 was $2.2 million compared to $2.5 million for the same period in 2010. The decline is primarily due to a $0.2 million non-recurring non-interest income adjustment made in 2010 and a slight decrease in residential real estate refinancing activity impacting both the volume of loans sold and gains recognized. Non-interest expense for the three months ended June 30, 2011 was $9.0 million compared to $10.3 million for second quarter 2010. The decrease is largely attributed to a $1.0 million decline in other real estate expense including losses on foreclosed properties.