Hawthorn Bank repays U.S. Treasury

Lee's Summit-based Hawthorn Bancshares Inc. (Nasdaq: HWBK) has repaid fully the funding received from the U.S. Department of the Treasury through its Troubled Asset Relief Program.

The bank holding company, which operates a branch apiece in Springfield and Branson, announced this week it paid the federal department $18.3 million, completing its repayment of the $30.3 million theTreasury paid for its stock in 2008 under the program, according to a news release.

“Repayment of our TARP funds is a significant milestone for Hawthorn. This action reflects the strength of our balance sheet, and, with the economic recovery gaining momentum, it was time to redeem the Treasury’s investment,” Hawthorn CEO David Turner said in the release. “With the absence of any requirement to raise equity, this is clearly in the best interests of our shareholders.”

Hawthorn also announced this week it registered a first-quarter net loss of $136,000, a 109 percent decrease compared to profits of $1.5 million in the same quarter a year ago.

The company reported a 9-cent loss per diluted share for the three months ended March 31, compared to a 21-cent gain in first-quarter 2012, according to the release.

Company officials said the drop in net income was largely due to a $2.3 million real estate expense.

"The main driver of the company’s first quarter loss is exposure in two commercial real estate properties in Branson, which continue to deteriorate in value," Turner said in the release, which didn't name the properties.

Hawthorn Senior Vice President of Investor Relations Kathleen Bruegenhemke was unavailable for comment by deadline.

As of March 31, the company's assets were $1.2 billion and deposits were roughly $1 million.

HWBK shares were trading at $11.67 as of 10:51 a.m. The company hit a 52-week high yesterday of $12.25, the day after disclosing its first-quarter financials and TARP repayment announcement.