This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hawthorn Bancshares Reports 2011 Financial Results

Hawthorn Bancshares Inc. (NASDAQ: HWBK), today reported financial results for the Company for the year ended December 31, 2011.

The Company reported diluted earnings per common share of $0.19 for the year ended December 31, 2011 compared to a $1.19 per common share loss for 2010. Improvement in operating results for 2011 was largely impacted by a $7.1 million reduction in other real estate expenses (which included a 2010 $5.7 million valuation write-down on a single commercial real estate development parcel) and a $3.7 million reduction in loan loss provision expenses. Net income available to common shareholders for 2011 was $0.9 million after deducting dividends and the related discount accretion of $2.0 million on preferred stock issued to the U.S. Treasury under the Capital Purchase Program.

Commenting on the Company’s performance, Chairman & CEO David T. Turner said, “The core performance of Hawthorn remains strong. Our pre-tax, pre-provision core earnings continue to provide solid support for the credit-related expenses needed to address our problem assets. We still have additional work ahead in reducing our problem assets to an acceptable level and returning to our accustomed earnings standards; but we feel that much has been accomplished. Management continues to closely monitor our non-performing assets and focus on problem asset resolution.”

Operating Results

Net Interest Income

Net interest income remained strong for 2011 due to increasing the net interest margin to 3.92% from 2010’s margin of 3.78% despite a 4.7% decrease in average earning assets. The higher net interest margin is primarily the result of interest bearing liabilities repricing lower than interest bearing assets.

Loan-Loss Reserve

Hawthorn's level of non-performing loans decreased $2.6 million during 2011. However, due to a decrease in loan volume, non-performing loans proportionally increased to 6.37% of total loans compared to 6.27% at year-end 2010. The Company provided $11.5 million to the allowance for loan losses in 2011, compared to $15.3 million in 2010. This decrease of $3.8 million was primarily due to a reduction in net charge-offs of $3.2 million to $12.3 million for 2011 compared to $15.5 million for 2010. The total allowance at year-end 2011 was $13.8 million, or 1.64% of outstanding loans and 25.73% of nonperforming loans. This compares to an allowance of $14.6 million, or 1.62% of outstanding loans and 25.87% of nonperforming loans as of year-end 2010.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs