Hawthorn Bancshares Inc. (HWBK, Financial) filed Quarterly Report for the period ended 2012-06-30.
Hawthorn Bancshares, Inc. has a market cap of $43.8 million; its shares were traded at around $9.05 with a P/E ratio of 31.4 and P/S ratio of 0.7. The dividend yield of Hawthorn Bancshares, Inc. stocks is 2.2%.
Our Companys consolidated net income of $2,191,000 for the six months ended June 30, 2012 decreased $171,000 compared to consolidated net income of $2,362,000 for the six months ended June 30, 2011. Our Company recorded preferred stock dividends and accretion on preferred stock of $1,181,000 for the six months ended June 30, 2012, resulting in $1,010,000 of net income available for common shareholders compared to net income available for common shareholders of $1,372,000 for the six months ended June 30, 2011. Diluted earnings per share decreased from $0.28 per common share for the six months ended June 30, 2011 to $0.21 per common share for the six months ended June 30, 2012. The provision for loan losses decreased $433,000, or 11.9%, from June 30, 2011 to June 30, 2012. Our Companys net interest income, on a tax equivalent basis, decreased $309,000, or 1.43%, to $21,266,000 for the six months ended June 30, 2012 compared to $21,575,000 for the six months ended June 30, 2011. The $681,000 decrease in income tax expense includes a $371,000 immaterial correction of a prior period error. For the six months ended June 30, 2012, the return on average assets was 0.37%, the return on average common stockholders equity was 2.73%, and the efficiency ratio was 77.1%. Net interest margin decreased from 3.90% to 3.87% from June 30, 2011 to 2012, respectively.
Net interest income on a fully taxable equivalent basis decreased $309,000, or 1.4%, to $21,266,000 for the six months ended June 30, 2012 compared to $21,575,000 for the six months ended June 30, 2011. Measured as a percentage of average earning assets, the net interest margin (expressed on a fully taxable equivalent basis) decreased to 3.87% for the six months ended June 30, 2012 from 3.90% for the six months ended June 30, 2011. The decrease in net interest income was primarily the result of lower interest income earned on loans due to lower average balances and lower average rates. Our Companys net interest spread slightly increased to 3.73% for the six months ended June 30, 2012 from 3.71% for the six months ended June 30, 2011. While rates earned on interest earning assets decreased from 4.97% for the six months ended June 30, 2011 to 4.59% for the six months ended June 30, 2012, rates paid on interest bearing liabilities decreased to 0.86% for the six months ended June 30, 2012 compared to 1.26% for the six months ended June 30, 2011. For the six months ended June 30, 2012, interest expense incurred on deposits and other borrowings decreased $2,004,000 from the six months ended June 30, 2011. Effective January 1, 2012, our Company recorded a $368,000 credit to interest expense on time deposits for imputed interest calculated on capitalized interest not accounted for during the time period of 2004 through 2011 on the construction of our Companys new bank buildings. This is considered a correction of an immaterial prior period error. Without this credit to interest expense, rates paid on interest bearing liabilities would have been approximately 0.94% for the six months ended June 30, 2012.
Noninterest income increased $265,000 or 12.2% to $2,443,000 for the three months ended June 30, 2012 compared to $2,178,000 for the three months ended June 30, 2011. The increase was primarily the result of a $259,000 increase in the gains on sales of mortgage loans. Partially offsetting this increase was a $66,000 decrease in real estate servicing income recorded in other noninterest income. As a result of the changes in fair value, during the three months ended June 30, 2012, $218,000 was earned in real estate service fees, $106,000 was recorded in real estate servicing income due to changes in model inputs and assumptions, and ($333,000) was recorded due to other changes in fair value resulting from customer payments and passage of time. This is in comparison to the three months ended June 30, 2011 in which $213,000 was earned in real estate servicing fees and $155,000 of MSR amortization was recorded. The newly adopted accounting principle is preferable in the circumstances because the fair value measurement method will produce financial information and results more directly aligned with the performance of mortgage servicing rights. Our Companys loans sold increased from $10,000,000 for the three months ended June 30, 2011 to $19,000,000 for the three months ended June 30, 2012. Due to low interest rates, an increase in refinancing activity impacted both the volume of loans sold and gains recognized.
Noninterest income increased $182,000 or 4.3% to $4,413,000 for the six months ended June 30, 2012 compared to $4,231,000 for the six months ended June 30, 2011. The increase was primarily the result of a $532,000 increase on gains on sales of mortgage loans partially offset by a $375,000 decrease in the real estate servicing income recorded in other noninterest income. As a result of the changes in fair value during the first six months of 2012, $425,000 was earned in real estate service fees, $275,000 was recorded in real estate servicing income due to changes in model inputs and assumptions, and ($988,000) was recorded due to other changes in fair value resulting from customer payments and passage of time. This is in comparison to the six months ended June 30, 2011 in which $393,000 was earned in real estate servicing fees and $304,000 of MSR amortization was recorded. Our Companys loans sold increased from $22,000,000 for the six months ended June 30, 2011 to $40,000,000 for the six months ended June 30, 2012. As mentioned above, due to low interest rates, an increase in refinancing activity impacted both the volume of loans sold and gains recognized. Our Company was servicing $306,000,000 of mortgage loans at June 30, 2012 compared to $300,000,000 at June 30, 2011.
Read the The complete Report
Hawthorn Bancshares, Inc. has a market cap of $43.8 million; its shares were traded at around $9.05 with a P/E ratio of 31.4 and P/S ratio of 0.7. The dividend yield of Hawthorn Bancshares, Inc. stocks is 2.2%.
Highlight of Business Operations:
Our Companys consolidated net income of $740,000 for the three months ended June 30, 2012 decreased $668,000 compared to consolidated net income of $1,408,000 for the three months ended June 30, 2011. Our Company recorded preferred stock dividends and accretion on preferred stock of $692,000 for the three months ended June 30, 2012, resulting in $48,000 of net income available for common shareholders compared to net income available for common shareholders of $907,000 for the three months ended June 30, 2011. Diluted earnings per share decreased from $0.19 per common share for the three months ended June 30, 2011 to $0.01 per common share for the three months ended June 30, 2012. The provision for loan losses decreased $383,000, or 20.3%, from June 30, 2011 to June 30, 2012. On May 9, 2012, our Company redeemed 12,000 of the 30,255 shares of preferred stock issued under the U.S. Treasurys CPP program. Related to these shares was an additional $300,000 of accretion that was recognized at the time of the redemption. Our Companys net interest income, on a tax equivalent basis, decreased $626,000, or 5.0%, to $10,309,000 for the three months ended June 30, 2012 compared to $10,935,000 for the three months ended June 30, 2011. For the three months ended June 30, 2012, the return on average assets was 0.25%, the return on average common stockholders equity was 0.26%, and the efficiency ratio was 80.0%. Net interest margin decreased from 3.95% to 3.77% from June 30, 2011 to 2012, respectively.Our Companys consolidated net income of $2,191,000 for the six months ended June 30, 2012 decreased $171,000 compared to consolidated net income of $2,362,000 for the six months ended June 30, 2011. Our Company recorded preferred stock dividends and accretion on preferred stock of $1,181,000 for the six months ended June 30, 2012, resulting in $1,010,000 of net income available for common shareholders compared to net income available for common shareholders of $1,372,000 for the six months ended June 30, 2011. Diluted earnings per share decreased from $0.28 per common share for the six months ended June 30, 2011 to $0.21 per common share for the six months ended June 30, 2012. The provision for loan losses decreased $433,000, or 11.9%, from June 30, 2011 to June 30, 2012. Our Companys net interest income, on a tax equivalent basis, decreased $309,000, or 1.43%, to $21,266,000 for the six months ended June 30, 2012 compared to $21,575,000 for the six months ended June 30, 2011. The $681,000 decrease in income tax expense includes a $371,000 immaterial correction of a prior period error. For the six months ended June 30, 2012, the return on average assets was 0.37%, the return on average common stockholders equity was 2.73%, and the efficiency ratio was 77.1%. Net interest margin decreased from 3.90% to 3.87% from June 30, 2011 to 2012, respectively.
Net interest income on a fully taxable equivalent basis decreased $309,000, or 1.4%, to $21,266,000 for the six months ended June 30, 2012 compared to $21,575,000 for the six months ended June 30, 2011. Measured as a percentage of average earning assets, the net interest margin (expressed on a fully taxable equivalent basis) decreased to 3.87% for the six months ended June 30, 2012 from 3.90% for the six months ended June 30, 2011. The decrease in net interest income was primarily the result of lower interest income earned on loans due to lower average balances and lower average rates. Our Companys net interest spread slightly increased to 3.73% for the six months ended June 30, 2012 from 3.71% for the six months ended June 30, 2011. While rates earned on interest earning assets decreased from 4.97% for the six months ended June 30, 2011 to 4.59% for the six months ended June 30, 2012, rates paid on interest bearing liabilities decreased to 0.86% for the six months ended June 30, 2012 compared to 1.26% for the six months ended June 30, 2011. For the six months ended June 30, 2012, interest expense incurred on deposits and other borrowings decreased $2,004,000 from the six months ended June 30, 2011. Effective January 1, 2012, our Company recorded a $368,000 credit to interest expense on time deposits for imputed interest calculated on capitalized interest not accounted for during the time period of 2004 through 2011 on the construction of our Companys new bank buildings. This is considered a correction of an immaterial prior period error. Without this credit to interest expense, rates paid on interest bearing liabilities would have been approximately 0.94% for the six months ended June 30, 2012.
Noninterest income increased $265,000 or 12.2% to $2,443,000 for the three months ended June 30, 2012 compared to $2,178,000 for the three months ended June 30, 2011. The increase was primarily the result of a $259,000 increase in the gains on sales of mortgage loans. Partially offsetting this increase was a $66,000 decrease in real estate servicing income recorded in other noninterest income. As a result of the changes in fair value, during the three months ended June 30, 2012, $218,000 was earned in real estate service fees, $106,000 was recorded in real estate servicing income due to changes in model inputs and assumptions, and ($333,000) was recorded due to other changes in fair value resulting from customer payments and passage of time. This is in comparison to the three months ended June 30, 2011 in which $213,000 was earned in real estate servicing fees and $155,000 of MSR amortization was recorded. The newly adopted accounting principle is preferable in the circumstances because the fair value measurement method will produce financial information and results more directly aligned with the performance of mortgage servicing rights. Our Companys loans sold increased from $10,000,000 for the three months ended June 30, 2011 to $19,000,000 for the three months ended June 30, 2012. Due to low interest rates, an increase in refinancing activity impacted both the volume of loans sold and gains recognized.
Noninterest income increased $182,000 or 4.3% to $4,413,000 for the six months ended June 30, 2012 compared to $4,231,000 for the six months ended June 30, 2011. The increase was primarily the result of a $532,000 increase on gains on sales of mortgage loans partially offset by a $375,000 decrease in the real estate servicing income recorded in other noninterest income. As a result of the changes in fair value during the first six months of 2012, $425,000 was earned in real estate service fees, $275,000 was recorded in real estate servicing income due to changes in model inputs and assumptions, and ($988,000) was recorded due to other changes in fair value resulting from customer payments and passage of time. This is in comparison to the six months ended June 30, 2011 in which $393,000 was earned in real estate servicing fees and $304,000 of MSR amortization was recorded. Our Companys loans sold increased from $22,000,000 for the six months ended June 30, 2011 to $40,000,000 for the six months ended June 30, 2012. As mentioned above, due to low interest rates, an increase in refinancing activity impacted both the volume of loans sold and gains recognized. Our Company was servicing $306,000,000 of mortgage loans at June 30, 2012 compared to $300,000,000 at June 30, 2011.
Read the The complete Report
