Hawthorn Bancshares Inc. (NASDAQ: HWBK), today reported consolidated financial results for the Company for the quarter ended March 31, 2014.
Net income for the quarter was $2.0 million compared to a net loss of $0.1 million for the first quarter of 2013. The first quarter 2013 loss was due largely to a $2.3 million other real estate impairment write down. Net income available to common shareholders for the first quarter of 2014 was $2.0 million compared to the first quarter 2013 net loss available to common shareholders of $0.4 million after deducting preferred dividends and discount accretion of $0.3 million.
On a per share basis, Hawthorn reported positive diluted earnings per common share of $0.39 for the three months ended March 31, 2014, versus a diluted net loss per common share of $0.09 for the first quarter of 2013.
Commenting on earnings performance, Chairman David T. Turner said, “First quarter results were full of many positives in comparison to 2013. We are seeing loan demand strengthen and net interest income levels are remaining strong. Additionally, no loan loss provision was made for the three months ended March 31, 2014 due to improving credit quality in our historical loss analysis. While non-interest income was lower for first quarter 2014 compared to first quarter 2013 due to reduced residential real estate mortgage activity and investment security gains realized in the prior year quarter, this variance was more than offset by a favorable change in the non-interest expense category.”
Net Interest Income
Net interest income for the quarter ended March 31, 2014 was relatively unchanged at $9.7 million compared to first quarter 2013. Hawthorn was able to maintain its net interest income level due to the net interest margin increasing from 3.65% for the first quarter 2013 to 3.72% for the first quarter 2014 primarily due to the maturity of a high cost certificate of deposit program despite a $29 million, or 2.6%, decline in average earning assets.