Hawthorn Bancshares Reports Results for the Fourth Quarter and the Year Ended December 31, 2024

Core Viewpoint - Hawthorn Bancshares, Inc. reported strong financial results for the fourth quarter and full year of 2024, highlighting improvements in net income, operational efficiency, and strategic growth initiatives [1][4]. Financial Summary - Fourth quarter 2024 net income was $4.6 million, or$ 0.66 per diluted share, consistent with the prior quarter and a significant increase of $12.0 million, or 161.8%, from the fourth quarter of 2023 [6][8]. - For the year ended December 31, 2024, net income was$ 18.3 million, or $2.61 per diluted share, compared to$ 1.0 million, or $0.14 per diluted share, for 2023, reflecting an improvement of$ 17.3 million [7][29]. - The net interest margin for the fourth quarter improved to 3.55% from 3.36% in the prior quarter, while the full-year net interest margin was 3.41% [6][10]. Balance Sheet Information - Total assets as of December 31, 2024, were $1.825 billion, a slight increase from$ 1.810 billion in the prior quarter but a decrease from $1.875 billion in the prior year [5]. - Loans held for investment decreased to$ 1.466 billion, down 0.04% from the prior quarter and down 4.7% from the prior year [18]. - Total deposits increased by $29.7 million, or 2.0%, from the prior quarter to$ 1.533 billion, but decreased by $37.7 million, or 2.4%, from the prior year [25]. Capital and Asset Quality - The company maintained a "well capitalized" position with total risk-based capital of 14.79% as of December 31, 2024 [26]. - Non-performing loans to total loans improved to 0.19%, down from 0.42% in the prior year, indicating strong credit quality [20][31]. - The allowance for credit losses was$ 22.0 million, or 1.50% of outstanding loans, and 802.48% of non-performing loans [24]. Non-Interest Income and Expenses - Total non-interest income for 2024 was $14.3 million, an increase of$ 6.8 million, or 90.0%, from the prior year [13]. - Non-interest expense for 2024 decreased by $2.8 million, or 5.4%, to$ 49.5 million compared to $52.4 million in 2023 [15]. - The efficiency ratio for the fourth quarter was 68.5%, compared to 66.2% in the prior quarter and 81.1% in the prior year quarter [17]. Future Outlook - The company received approval to open a new banking center in Overland Park, Kansas, in February 2025, indicating ongoing growth initiatives [4].