On October 25, 2023, Hawthorn Bancshares Inc (HWBK, Financial) reported its third quarter 2023 earnings. The company posted a net income of $2.6 million and earnings per diluted share of $0.36. The net interest margin, fully taxable equivalent (FTE), stood at 3.35%. The return on average assets and equity was 0.54% and 8.05%, respectively. Compared to the second quarter of 2023, deposits increased by $37.1 million, or 2.4%.
Financial Performance
Despite a valuation adjustment on other real estate owned impacting the quarterly earnings, the overall performance of Hawthorn Bancshares Inc (HWBK, Financial) improved during the quarter. The net interest margin remained stable in a challenging macro-economic environment. The company's focus continues to be on prudent financial management, liquidity, and credit quality.
Income Statement Highlights
The third quarter 2023 net income was $2.6 million, an increase of $0.03 million, or 1.2%, from the linked quarter, and a decrease of $2.3 million, or 47.7%, from the third quarter 2022. The EPS was consistent at $0.36 for both the third quarter 2023 and linked quarter compared to $0.70 for the prior year quarter.
Balance Sheet and Cash Flow Statement Highlights
Loans held for investment decreased by $6.2 million, or 0.4%, to $1.6 billion as of September 30, 2023, compared to the end of the linked quarter and increased by $65.0 million, or 4.4%, from the end of the prior year quarter. The yield earned on average loans held for investment was 5.67%, on an FTE basis, for the third quarter 2023, compared to 5.23% for the linked quarter and 4.51% for the prior year quarter.
Company's Outlook
Despite the challenging macro-economic environment, Hawthorn Bancshares Inc (HWBK, Financial) has managed to maintain a stable net interest margin. The company's focus will continue to be on prudent financial management, liquidity, and credit quality. The company's Board of Directors approved a quarterly cash dividend of $0.17 per common share payable January 1, 2024, to shareholders of record at the close of business on December 15, 2023.
Explore the complete 8-K earnings release (here) from Hawthorn Bancshares Inc for further details.
