Hawthorn Bank boosts 3Q earnings 62%

Jefferson City-based Hawthorn Bancshares Inc. (Nasdaq: HWBK) this week reported third-quarter net income of $2.5 million, a 62 percent increase compared to $1.6 million.

The holding company, which operates a Hawthorn Bank branch in Springfield at 321 W. Battlefield Road, posted diluted share earnings of 47 cents for the three-month period ended Sept. 30, an 18-cent increase from third-quarter 2014, according to a news release.

“These increases were partially due to recoveries of nonaccrual interest from several problem loan relationships resolved during the current quarter,” Chairman David Turner said in the release.

Third-quarter financial notes:
    •    Hawthorn Bank’s net interest income improved 6 percent to $10.6 million from $10 million last year.
    •    The company recorded no provision for loan losses, the same as last year.
    •    Noninterest income moved up slightly to $2.3 million, and noninterest expense dropped to $9 million from $9.9 million.

As of Sept. 30, Hawthorn Bank held assets of $1.2 billion and deposits of $972 million. It operates Missouri branches in Lee's Summit, Liberty, Springfield, Branson, Independence, Columbia, Clinton, Windsor, Collins, Osceola, Warsaw, Belton, Drexel, Harrisonville, California and St. Robert, according to the release.

HWBK shares were trading at $14.50 as of 9:54 a.m., compared to a 52-week range of $12.02 to $17.58.