Hawthorn Bancshares Inc (HWBK) Reports Q3 2023 Earnings

GuruFocus Research
2 min read

In This Article:

  • Third quarter 2023 net income of $2.6 million, or $0.36 per diluted share

  • Net interest margin, fully taxable equivalent ("FTE") of 3.35%

  • Return on average assets and equity of 0.54% and 8.05%, respectively

  • Deposits increased $37.1 million, or 2.4%, compared to the second quarter 2023


On October 25, 2023, Hawthorn Bancshares Inc (NASDAQ:HWBK) 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 (NASDAQ:HWBK) 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 (NASDAQ:HWBK) 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.

This article first appeared on GuruFocus.

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