Hawthorn board approves stock repurchase plan up to $10M

The board of directors of Jefferson City-based Hawthorn Bancshares Inc. (Nasdaq: HWBK) has given the green light to a new stock repurchase program.

The holding company of Hawthorn Bank, which has a branch in Springfield at 321 W. Battlefield Road, will buy back up to $10 million worth of its shares, according to a news release. The initiative does not have a set termination date.

"The repurchased shares will be held in treasury and may be used by the company for general corporate purposes, including stock-based employee benefit plans and stock dividends," officials said in the release. "It is expected that the stock repurchases will be funded by cash generated through cash on hand, operations and other sources."

Chris Hafner, executive vice president and chief financial officer for Hawthorn, told Springfield Business Journal that the new stock repurchase program replaces another that was in place since 2019. Through that initiative, Hawthorn invested nearly $7.5 million to buy back around 345,000 of its shares, Hafner said.

Hawthorn Bancshares had roughly 6.9 million common shares outstanding as of June 3, according to the release.

During the first quarter, Hawthorn reported a 20.8% increase in profits to $5.4 million, according to past reporting. 

HWBK shares were trading at $29.01 as of 9:24 a.m., compared with a 52-week range of $19.50 to $35.95 per share.