Hawthorn Bancshares Reports First Quarter 2025 Results

Core Insights - Hawthorn Bancshares, Inc. reported a net income of $5.4 million for the first quarter of 2025, representing a 17.1% increase from the prior quarter and a 20.8% increase from the same quarter last year, with earnings per diluted share (EPS) of $0.77 [1][4][5] Financial Performance - Total assets as of March 31, 2025, were $1.883 billion, an increase from $1.825 billion at December 31, 2024 [3] - Loans held for investment increased by $4.2 million, or 1.2% annualized, to $1.470 billion compared to the prior quarter, but decreased by $48.5 million, or 12.9% annualized, from the prior year quarter [14] - Total deposits rose by $10.7 million, or 2.8% annualized, to $1.544 billion from the prior quarter, and increased by $16.0 million, or 4.2% annualized, from the prior year quarter [20] - Non-interest income for the first quarter was $3.5 million, a decrease of 1.7% from the prior quarter but an increase of 14.7% from the prior year quarter [10] - Total non-interest expense decreased by $0.4 million, or 3.3%, from the prior quarter, and by $0.1 million, or 0.6%, from the prior year quarter [12] Efficiency and Ratios - The efficiency ratio improved to 66.64% compared to 70.78% for the prior year quarter, driven by higher net interest margin and lower non-interest expenses [4][13] - Return on average assets and equity were 1.20% and 14.29%, respectively [4][24] - The net interest margin (FTE) improved to 3.67% from 3.55% in the prior quarter and 3.39% in the prior year quarter [4][24] Asset Quality - Non-performing assets to total loans improved to 0.21% from 0.69% in the prior year quarter, with non-performing assets totaling $3.1 million [16][24] - The allowance for credit losses was $21.8 million, or 1.48% of outstanding loans, and 885.01% of non-performing loans [19][24] Capital and Shareholder Returns - The company maintained a "well capitalized" regulatory capital position with a total risk-based capital ratio of 14.94% [21] - A quarterly cash dividend of $0.20 per common share was approved, representing a 5.3% increase from the prior year quarter's dividend [23]