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 Announces Financial Results

Hawthorn Bancshares Inc. (NASDAQ: HWBK), today reported consolidated financial results for the Company, including its main operating subsidiary, Hawthorn Bank, for the third quarter ended September 30.

Due largely to a $4.7 million loan loss provision and a $1.1 million other real estate impairment expense, Hawthorn realized a net loss for the third quarter of $1.6 million. This compares to the Company’s $1.5 million net income for the third quarter of 2011. On a per share basis, Hawthorn reported a $0.39 per diluted common share loss for the three months ended September 30, 2012, versus positive earnings per common share of $0.21 for the third quarter of 2011. Financial results were reduced by accrued dividends and accretion of $0.3 million on preferred stock issued to the U.S. Treasury under the Capital Purchase Program for the third quarter of 2012 compared to $0.5 million for the same period in 2011.

The preferred dividend reduction for the quarter results from repaying $12 million of the company’s TARP obligation on May 9, 2012.

On a year to date basis, Hawthorn Bancshares generated net income of $0.6 million, down from $3.9 million for 2011. After deducting accrued preferred dividends and accretion of $1.5 million, Hawthorn reported a $0.9 million loss to common shareholders for the nine months ending September 30, 2012. This compares to net income of $2.4 million available to common shareholders for the same period in 2011 after preferred dividends and accretion of $1.5 million. On a diluted per common share basis, Hawthorn reported an $0.18 loss for the nine months ended September 30, 2012 compared to income of $0.49 per common share for the same period in 2011.

Commenting on earnings performance, Chairman David T. Turner said, “2012 is proving to be a difficult economic environment for Hawthorn with significant increases in loan loss provisions and carrying costs associated with foreclosed assets. The main driver of the Company’s 3 rd quarter loan loss provision expense resulted from exposure in a commercial real estate property in Branson, Missouri which has experienced lower tourism revenues.”

Operating Results

Net Interest Income

Due to a reduction in the Company’s net interest margin from 3.98% for the third quarter of 2011 to 3.80% for the same period in 2012, net interest income for the quarter declined moderately to $10.1 million from $10.8 million. The lower net interest margin was primarily the result of reduced earning asset yields, while the volume of earning assets remained relatively steady. With reference to interest income, Chairman Turner stated, “Hawthorn’s core operations remain strong as our net interest margin continues to fair well in comparison to our peers. With the historically low rate environment and growing loan competition, the entire banking industry is experiencing margin pressure and while Hawthorn is experiencing some compression, the margin for the quarter remains healthy.”

1 of 3

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 $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%
TSLA $211.34 -5.00%
YHOO $36.94 2.60%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.60 -0.52 -0.03%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs