Hawthorn Banc­shares an­nounces earn­ings

The Pak Banker - - Front Page -


Hawthorn Banc­shares Inc to­day re­ported con­sol­i­dated fi­nan­cial re­sults for the Com­pany, in­clud­ing its main oper­at­ing sub­sidiary, Hawthorn Bank, for the third quar­ter ended Septem­ber 30.

Due largely to a $4.7 mil­lion loan loss pro­vi­sion and a $1.1 mil­lion other real es­tate im­pair­ment ex­pense, Hawthorn re­al­ized a net loss for the third quar­ter of $1.6 mil­lion. This com­pares to the Com­pany's $1.5 mil­lion net in­come for the third quar­ter of 2011. On a per share ba­sis, Hawthorn re­ported a $0.39 per di­luted com­mon share loss for the three months ended Septem­ber 30, 2012, ver­sus pos­i­tive earn­ings per com­mon share of $0.21 for the third quar­ter of 2011. Fi­nan­cial re­sults were re­duced by ac­crued div­i­dends and ac­cre­tion of $0.3 mil­lion on pre- ferred stock is­sued to the U.S. Trea­sury un­der the Cap­i­tal Pur­chase Pro­gram for the third quar­ter of 2012 com­pared to $0.5 mil­lion for the same pe­riod in 2011.

On a year to date ba­sis, Hawthorn Banc­shares gen­er­ated net in­come of $0.6 mil­lion, down from $3.9 mil­lion for 2011. Af­ter de­duct­ing ac­crued pre­ferred div­i­dends and ac­cre­tion of $1.5 mil­lion, Hawthorn re­ported a $0.9 mil­lion loss to com­mon share­hold­ers for the nine months end­ing Septem­ber 30, 2012. This com­pares to net in­come of $2.4 mil­lion avail­able to com­mon share­hold­ers for the same pe­riod in 2011 af­ter pre­ferred div­i­dends and ac­cre­tion of $1.5 mil­lion. On a di­luted per com­mon share ba­sis, Hawthorn re­ported an $0.18 loss for the nine months ended Septem­ber 30, 2012 com­pared to in­come of $0.49 per com­mon share for the same pe­riod in 2011.

Com­ment­ing on earn­ings per­for­mance, Chair­man David T. Turner said 2012 is prov­ing to be a dif­fi­cult eco­nomic en­vi­ron­ment for Hawthorn with sig­nif­i­cant in­creases in loan loss pro­vi­sions and car­ry­ing costs as­so­ci­ated with fore­closed as­sets. The main driver of the Com­pany's 3rd quar­ter loan loss pro­vi­sion ex­pense re­sulted from ex­po­sure in a com­mer­cial real es­tate prop­erty in Bran­son, Mis­souri which has ex­pe­ri­enced lower tourism rev­enues.

Due to a re­duc­tion in the Com­pany's net in­ter­est mar­gin from 3.98% for the third quar­ter of 2011 to 3.80% for the same pe­riod in 2012, net in­ter­est in­come for the quar­ter de­clined mod­er­ately to $10.1 mil­lion from $10.8 mil­lion. The lower net in­ter­est mar­gin was pri­mar­ily the re­sult of re­duced earn­ing as­set yields, while the vol­ume of earn­ing as­sets re­mained rel­a­tively steady.


Stephan Col­bert poses for pho­tos with his wax fig­ure at the Stephen Col­bert wax fig­ure un­veil­ing at Madame Tussauds.

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