Hawthorn Bancshares reported Q4 2024 net income of $4.6 million, annual income of $18.3 million, and improved asset quality.
Quiver AI Summary
Hawthorn Bancshares, Inc. reported strong financial results for the fourth quarter and full year 2024, with net income of $4.6 million in Q4 and $18.3 million for the year, representing significant increases from the previous year. The company saw improvements in net interest margin, rising to 3.55% for Q4, and recorded a strong return on average assets and equity. Total investments and deposits increased, while non-performing loans and charge-offs decreased, indicating good asset quality. CEO Brent Giles expressed satisfaction with operational efficiency improvements and announced plans to open a new banking center in Overland Park, Kansas, in February 2025. Additionally, the Board of Directors approved a quarterly cash dividend of $0.19 per share for April 2025.
Potential Positives
- Net income for the year ended December 31, 2024, was $18.3 million, or $2.61 per diluted share, significantly improving from $1.0 million, or $0.14 per diluted share, in the prior year.
- Total non-interest income for 2024 increased by 90.0% to $14.3 million, primarily driven by growth in earnings from bank-owned life insurance and mortgage servicing rights.
- The approval to open a new banking center location in Overland Park, Kansas, set for February 2025, indicates potential for growth and expansion in the market.
- Credit quality remained strong, with non-performing loans to total loans reducing from 0.42% in the prior year to 0.19%, showcasing improved asset quality.
Potential Negatives
- Loans decreased by $73.0 million, or 4.7%, compared to the prior year, indicating a potential weakness in lending activity.
- Total deposits decreased by $37.7 million, or 2.4%, from the prior year, reflecting a possible decline in customer confidence or market share.
- Net interest income for 2024 was $58.6 million, slightly down from $59.1 million in the prior year, signaling stagnation in core income despite an overall increase in net income.
FAQ
What were Hawthorn Bancshares' fourth quarter earnings for 2024?
Hawthorn Bancshares reported fourth quarter 2024 net income of $4.6 million, equating to earnings per share of $0.66.
How did the net interest margin change in Q4 2024?
The net interest margin improved to 3.55% in Q4 2024, up from 3.36% in the previous quarter.
What is the total deposits amount as of December 31, 2024?
Total deposits were $1.5 billion as of December 31, 2024, representing a $29.7 million increase from the prior quarter.
What is the book value per share for Hawthorn Bancshares?
As of December 31, 2024, the book value per share increased to $21.36, which is 11% higher compared to the previous year.
When will the next dividend be paid to shareholders?
The next quarterly cash dividend of $0.19 per share will be paid on April 1, 2025, to shareholders of record on March 15, 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$HWBK Insider Trading Activity
$HWBK insiders have traded $HWBK stock on the open market 10 times in the past 6 months. Of those trades, 2 have been purchases and 8 have been sales.
Here’s a breakdown of recent trading of $HWBK stock by insiders over the last 6 months:
- JONATHAN HOLTAWAY has made 0 purchases and 7 sales selling 25,322 shares for an estimated $778,342.
- FRANK E. BURKHEAD has made 1 purchase buying 100 shares for an estimated $2,184 and 1 sale selling 3,000 shares for an estimated $95,595.
- SHAWNA M. HETTINGER purchased 21 shares for an estimated $506
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$HWBK Hedge Fund Activity
We have seen 14 institutional investors add shares of $HWBK stock to their portfolio, and 13 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- JANE STREET GROUP, LLC removed 16,946 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $424,158
- COLONY GROUP, LLC added 9,209 shares (+inf%) to their portfolio in Q3 2024, for an estimated $230,501
- MONETA GROUP INVESTMENT ADVISORS LLC added 9,144 shares (+inf%) to their portfolio in Q3 2024, for an estimated $228,874
- PRICE T ROWE ASSOCIATES INC /MD/ added 8,222 shares (+inf%) to their portfolio in Q3 2024, for an estimated $205,796
- QUBE RESEARCH & TECHNOLOGIES LTD added 8,114 shares (+7244.6%) to their portfolio in Q3 2024, for an estimated $203,093
- BLACKROCK, INC. removed 7,910 shares (-15.0%) from their portfolio in Q3 2024, for an estimated $197,987
- GEODE CAPITAL MANAGEMENT, LLC added 6,955 shares (+11.3%) to their portfolio in Q3 2024, for an estimated $174,083
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
JEFFERSON CITY, Mo., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Hawthorn Bancshares, Inc.
(NASDAQ: HWBK)
, (the “Company”), the holding company for Hawthorn Bank, reported fourth quarter 2024 net income of $4.6 million, or earnings per diluted share of $0.66, and net income of $18.3 million, or earnings per diluted share ("EPS") of $2.61, for the year ended December 31, 2024.
Fourth Quarter 2024 Results
Net income of $4.6 million, or $0.66 per diluted share
Net interest margin, fully taxable equivalent ("FTE"), improved in the fourth quarter of 2024 to 3.55% compared to 3.36%
for the
third quarter 2024
(the "prior quarter")
Return on average assets and equity of 1.00% and 12.49%, respectively
Investments increased $14.8 million, or 7.1%, compared to the prior quarter
Deposits
increased
$29.7 million
, or
2.0%
, compared to the prior quarter
2024 Results
Net income of $18.3 million, or $2.61 per diluted share, for 2024
improved
$17.3 million, or $2.47 per diluted share, from the prior year 2023 (the "prior year")
Net interest margin (FTE) of 3.41%
Return on average assets and equity of 1.00% and 13.04%, respectively
Investments increased $28.8 million, or 14.7%, compared to the prior year
Loans decreased $73.0 million, or 4.7%, compared to the prior year
Deposits decreased $37.7 million, or 2.4%, compared to the prior year
Remained well capitalized with total risk-based capital of 14.79%
Credit quality remained strong with non-performing loans to total loans of 0.19%
improving from
0.42%
in the prior year
Book Value per share increased
$2.03
to 21.36
, or
11%
,
compared to the prior year
Non-interest expenses
decreased
5.4%
compared to the prior year
Brent Giles, Chief Executive Officer of Hawthorn Bancshares, Inc. commented,
“We are pleased with our fourth quarter and full-year results as they reflect our commitment to improving core operational efficiency and income. Additionally, we received approval to open a banking center location in Overland Park, Kansas in February 2025. Internally, we have been focused on creating synergies in our operations and building a foundation upon which we can grow. We believe that we made significant strides in addressing these strategic needs in 2024."
FINANCIAL SUMMARY (unaudited) $000, except per share data | |||||||||
December 31, | September 30, | December 31 | |||||||
Balance sheet information: | 2024 | 2024 | 2023 | ||||||
Total assets | $ | 1,825,185 | $ | 1,809,769 | $ | 1,875,350 | |||
Loans held for investment | 1,466,160 | 1,466,751 | 1,539,147 | ||||||
Investment securities | 223,801 | 209,019 | 195,042 | ||||||
Deposits | 1,533,182 | 1,503,504 | 1,570,844 | ||||||
Total stockholders’ equity | $ | 149,547 | $ | 146,474 | $ | 136,085 | |||
Market and per share data: | |||||||||
Book value per share | $ | 21.36 | $ | 20.91 | $ | 19.33 | |||
Market price per share | $ | 28.35 | $ | 25.03 | $ | 25.37 | |||
Diluted earnings per share (YTD) | $ | 2.61 | $ | 1.95 | $ | 0.14 | |||
Diluted earnings (loss) per share (QTR) | $ | 0.66 | $ | 0.66 | $ | (1.05 | ) | ||
Financial Results for the Quarter and the Year Ended December 31, 2024
Earnings
Net income for 2024 was $18.3 million, or $2.61 per diluted share, compared to net income of $1.0 million, or $0.14 per diluted share, for the prior year.
Net income was consistent at $4.6 million, or $0.66 per diluted share, for both the fourth quarter 2024 and the prior quarter, and increased $12.0 million, or 161.8%, from the fourth quarter 2023 (the "prior year quarter"). Diluted earnings per share was $0.66 for the fourth quarter 2024 compared to a diluted loss per share of $(1.05) for the prior year quarter.
Net interest income
Net interest income for 2024 was $58.6 million and net interest margin was 3.41%, on an FTE basis, compared to net interest income of $59.1 million and net interest margin of 3.29%, on an FTE basis, for the prior year.
Net interest income of $15.3 million for the fourth quarter of 2024, increased $1.0 million from the prior quarter, and decreased $0.5 million from the prior year quarter. Interest income decreased $1.3 million in the current quarter compared to the prior year quarter, driven primarily by lower average interest earning assets, while interest expense decreased $0.8 million compared to the prior year quarter. Net interest margin, on an FTE basis, was 3.55% for the fourth quarter, compared to 3.36% for the prior quarter, and 3.48% for the prior year quarter.
The yield earned on average loans held for investment was 5.86%, on an FTE basis, for the fourth quarter 2024, compared to 5.83% for the prior quarter and 5.93% for the prior year quarter.
The average cost of deposits was 2.49% for the fourth quarter 2024, compared to 2.74% for the prior quarter and 2.58% for the prior year quarter. Non-interest bearing demand deposits as a percent of total deposits was 25.1% as of December 31, 2024, compared to 26.0% and 25.6% at September 30, 2024 and December 31, 2023, respectively.
Non-interest Income
Total non-interest income for 2024 was $14.3 million, an increase of $6.8 million, or 90.0%, from $7.5 million for 2023. This increase was primarily due to the recognition of a $4.7 million valuation write-down on other real estate owned properties in 2023.
Total non-interest income for the fourth quarter of 2024 was $3.5 million, a decrease of $0.3 million, or 6.9%, from the prior quarter, and an increase of $1.4 million, or 63.7%, from the prior year quarter. The increase in the current quarter compared to the prior year quarter was primarily due to a $1.1 million mortgage servicing rights valuation adjustment recorded in the fourth quarter of 2023. An increase in earnings on bank-owned life insurance during the current quarter also contributed to this increase.
Non-interest Expense
Non-interest expense for 2024 was $49.5 million, a decrease of $2.8 million, or 5.4%, from $52.4 million in the prior year.
Non-interest expense for the fourth quarter of 2024 was $12.9 million, an increase of $0.9 million, or 7.7%, from the prior quarter, and a decrease of $1.7 million, or 11.4%, from the prior year quarter. Compared to the prior year quarter, salaries and benefits decreased $1.4 million due primarily to the reduction in full-time employees related to the restructuring of the residential mortgage loan group.
The fourth quarter efficiency ratio was 68.5% compared to 66.2% and 81.1% for the prior quarter and prior year quarter, respectively.
Loans
Loans held for investment decreased by $0.6 million, or 0.04%, to $1.5 billion as of December 31, 2024 compared to September 30, 2024 and decreased by $73.0 million, or 4.7%, from December 31, 2023.
Investments
Investments increased by $14.8 million, or 7.1%, to $223.8 million as of December 31, 2024 compared to September 30, 2024 and increased by $28.8 million, or 14.7%, from December 31, 2023.
Asset Quality
Non-performing assets to total loans was 0.29% at December 31, 2024, compared to 0.58% and 0.53% at September 30, 2024 and December 31, 2023, respectively. Non-performing assets totaled $4.2 million at December 31, 2024, compared to $8.5 million and $8.2 million at September 30, 2024 and December 31, 2023, respectively. The decrease in non-performing assets in the current quarter compared to the prior quarter was primarily due to the sale of $3.2 million of other real estate owned.
For 2024, the Company had net loan charge-offs of $2.7 million, or 0.18% of average loans, compared to $0.3 million, or 0.02% of average loans, for 2023. The increase was primarily the result of a charge-off on one commercial relationship.
In the fourth quarter of 2024, the Company had net loan charge-offs of $0.04 million, or 0.00% of average loans, compared to net loan charge-offs of $0.64 million, or 0.04% of average loans, and $0.27 million, or 0.02% of average loans, in the prior quarter and the prior year quarter, respectively.
For 2024, the Company recognized a provision for credit losses on loans and unfunded commitments of $1.0 million compared to a $2.3 million for 2023.
The Company recognized a $0.3 million provision for credit losses on loans and unfunded commitments for the fourth quarter of 2024 compared to $0.5 million and $1.6 million for the prior quarter and the prior year quarter, respectively.
The allowance for credit losses at December 31, 2024 was $22.0 million, or 1.50% of outstanding loans, and 802.48% of non-performing loans. At September 30, 2024, the allowance for credit losses was $21.9 million, or 1.50% of outstanding loans, and 539.52% of non-performing loans. At December 31, 2023, the allowance for credit losses was $23.7 million, or 1.54% of outstanding loans, and 370.25% of non-performing loans. The allowance for credit losses represents management’s best estimate of expected losses inherent in the loan portfolio and is commensurate with risks in the loan portfolio as of December 31, 2024.
Deposits
Total deposits at December 31, 2024 were $1.5 billion, an increase of $29.7 million, or 2.0%, from September 30, 2024, and a decrease of $37.7 million, or 2.4%, from December 31, 2023. The decrease in deposits at the end of the fourth quarter of 2024 as compared to the prior year quarter was primarily a result of a reduction in demand and time deposits.
Capital
The Company maintains its “well capitalized” regulatory capital position. At December 31, 2024, capital ratios were as follows: total risk-based capital to risk-weighted assets 14.79%, tier 1 capital to risk-weighted assets 13.54%, tier 1 leverage 11.46%, and common equity to assets 8.19%.
Pursuant to the Company's 2019 Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased under the plan, as well as the timing of any such purchases. The Company repurchased 56,692 common shares under the repurchase plan during 2024. As of December 31, 2024, $3.9 million remains available for share repurchases pursuant to the plan.
On January 22, 2025, the Company's Board of Directors approved a quarterly cash dividend of $0.19 per common share payable April 1, 2025 to shareholders of record at the close of business on March 15, 2025.
[Tables follow]
FINANCIAL SUMMARY (unaudited) $000, except per share data | |||||||||
Three Months Ended | |||||||||
December 31, | September 30, | December 31, | |||||||
Statement of income information: | 2024 | 2024 | 2023 | ||||||
Total interest income | $ | 23,924 | $ | 23,819 | $ | 25,220 | |||
Total interest expense | 8,578 | 9,492 | 9,376 | ||||||
Net interest income | 15,346 | 14,327 | 15,844 | ||||||
Provision for credit losses | 300 | 500 | 1,550 | ||||||
Non-interest income | 3,522 | 3,783 | 2,152 | ||||||
Investment securities gains (losses), net | 3 | 8 | (11,565 | ) | |||||
Non-interest expense | 12,921 | 11,994 | 14,587 | ||||||
Pre-tax income (loss) | 5,650 | 5,624 | (9,706 | ) | |||||
Income taxes (benefit) | 1,053 | 1,050 | (2,263 | ) | |||||
Net income (loss) | $ | 4,597 | $ | 4,574 | $ | (7,443 | ) | ||
Earnings (loss) per share: | |||||||||
Basic: | $ | 0.66 | $ | 0.66 | $ | (1.05 | ) | ||
Diluted: | $ | 0.66 | $ | 0.66 | $ | (1.05 | ) | ||
For the Years Ended | |||||||
December 31, | |||||||
Statement of income information: | 2024 | 2023 | |||||
Total interest income | $ | 95,351 | $ | 91,968 | |||
Total interest expense | 36,758 | 32,826 | |||||
Net interest income | 58,593 | 59,142 | |||||
Provision for credit losses | 1,027 | 2,340 | |||||
Non-interest income | 14,320 | 7,536 | |||||
Investment securities losses, net | (4 | ) | (11,547 | ) | |||
Non-interest expense | 49,524 | 52,359 | |||||
Pre-tax income | 22,358 | 432 | |||||
Income taxes (benefit) | 4,102 | (524 | ) | ||||
Net income | $ | 18,256 | $ | 956 | |||
Earnings per share: | |||||||
Basic: | $ | 2.61 | $ | 0.14 | |||
Diluted: | $ | 2.61 | $ | 0.14 | |||
FINANCIAL SUMMARY (continued) (unaudited) $000, except per share data | |||||||||||||||||||
As of or for the three months ended | As of or for the year ended | ||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Performance Ratios | |||||||||||||||||||
Return on average assets | 1.00 | % | 1.00 | % | (1.57) % | 1.00 | % | 0.05 | % | ||||||||||
Return on average common equity | 12.49 | % | 12.87 | % | (24.54) % | 13.04 | % | 0.76 | % | ||||||||||
Net interest margin (FTE) | 3.55 | % | 3.36 | % | 3.48 | % | 3.41 | % | 3.29 | % | |||||||||
Efficiency ratio | 68.48 | % | 66.23 | % | 81.06 | % | 67.92 | % | 78.53 | % | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Non-performing loans (a) | $ | 2,747 | $ | 4,066 | $ | 6,413 | |||||||||||||
Non-performing assets | $ | 4,193 | $ | 8,451 | $ | 8,157 | |||||||||||||
Net charge-offs | $ | 43 | $ | 636 | $ | 268 | $ | 2,725 | $ | 302 | |||||||||
Net charge-offs to average loans | — | % | 0.04 | % | 0.02 | % | 0.18 | % | 0.02 | % | |||||||||
Allowance for credit losses to total loans | 1.50 | % | 1.50 | % | 1.54 | % | |||||||||||||
Non-performing loans to total loans | 0.19 | % | 0.28 | % | 0.42 | % | |||||||||||||
Non-performing assets to loans | 0.29 | % | 0.58 | % | 0.53 | % | |||||||||||||
Non-performing assets to total assets | 0.23 | % | 0.47 | % | 0.43 | % | |||||||||||||
Allowance for credit losses on loans to non-performing loans | 802.48 | % | 539.52 | % | 370.25 | % | |||||||||||||
Capital Ratios | |||||||||||||||||||
Average stockholders' equity to total assets | 8.03 | % | 7.80 | % | 6.38 | % | 7.66 | % | 6.68 | % | |||||||||
Period-end stockholders' equity to period-end assets | 8.19 | % | 8.09 | % | 7.26 | % | |||||||||||||
Total risk-based capital ratio | 14.79 | % | 14.91 | % | 13.99 | % | |||||||||||||
Tier 1 risk-based capital ratio | 13.54 | % | 13.66 | % | 12.59 | % | |||||||||||||
Common equity Tier 1 capital | 10.49 | % | 10.53 | % | 9.73 | % | |||||||||||||
Tier 1 leverage ratio | 11.46 | % | 11.33 | % | 10.29 | % | |||||||||||||
(a) Non-performing loans include loans 90 days past due and accruing and non-accrual loans.
About Hawthorn Bancshares
Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in Jefferson City, Missouri, is the parent company of Hawthorn Bank, which has served families and businesses for more than 150 years. Hawthorn Bank has multiple locations, including in the greater Kansas City metropolitan area, Jefferson City, Columbia, Springfield, and Clinton.
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company's Annual Report on Form 10-K is filed. Statements made in this press release that suggest Hawthorn Bancshares' or management's intentions, hopes, beliefs, expectations, or predictions of the future include "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including those relating to the Company's balance sheet repositioning strategy and the anticipated effects thereof. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the Company's quarterly and annual reports filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company disclaims any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
