Hawthorn Bancshares (HWBK) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 rose 77% year-over-year to $4.6M ($0.66/share), with EPS up 83% and nine-month net income up 63% to $13.7M ($1.95/share).

• Return on average assets was 1.00% and return on average equity was 12.87% for Q3 2024.

• Efficiency ratio improved to 66.2% for Q3 2024, reflecting cost control and operational focus.

• Book value per share rose 24% year-over-year to $20.91.

• Strategic focus on core business lines led to reduced overhead and higher fee income.

Financial highlights

• Net interest income for Q3 2024 was $14.3M, down $0.8M year-over-year but up $0.2M sequentially; nine-month net interest income was $43.2M, down $0.1M.

• Non-interest income was $3.8M in Q3 2024, up $3.2M year-over-year; nine-month non-interest income doubled to $10.8M.

• Non-interest expense fell to $12.0M in Q3 2024, down 4.6% year-over-year and 0.3% sequentially; nine-month non-interest expense was $36.6M, down $1.2M.

• Net loan charge-offs were $0.6M for Q3 2024 and $2.7M for the nine months, up from $0.1M and $0.03M in 2023.

• Allowance for credit losses was $21.9M (1.50% of loans) at September 30, 2024.

Outlook and guidance

• Management remains focused on expanding core banking products and services while controlling expenses.

• The company expects to continue paying quarterly cash dividends, subject to board approval and regulatory requirements.