Hawthorn Bancshares, Inc. Repositions Balance Sheet
December 19 2023 - 11:28AM
Hawthorn Bancshares, Inc. (NASDAQ: HWBK) (the "Company"), the
parent company of Hawthorn Bank (the "Bank"), implemented a balance
sheet repositioning strategy of its portfolio of available-for-sale
investment securities.
The Bank sold $83.7 million in book value of
investment securities, with an average yield of 1.57%, for an
after-tax realized loss of $9.1 million. Investment securities sold
included $1.0 million of U.S. Treasury securities, $57.1 million of
mortgage-backed securities, $20.5 million U.S. Government-sponsored
agencies, and $5.1 million of municipal securities. The proceeds
will be reinvested in assets with higher yields and to pay down
borrowings.
CEO Brent Giles stated, " We elected to
proactively reposition our securities portfolio during the fourth
quarter, which we expect to be accretive to earnings, net interest
margin and return on assets in future periods."
The loss on the sale of securities is expected
to have a neutral impact on the Company's consolidated
shareholders' equity and tangible book value per share. After the
repositioning, the Bank's regulatory capital levels remained well
above those required to be categorized as well-capitalized.
About Hawthorn Bancshares,
Inc.
Hawthorn Bancshares, Inc. (NASDAQ: HWBK), a
financial-bank holding company headquartered in Jefferson City,
Missouri, is the parent company of Hawthorn Bank. With $1.9 billion
in assets, Hawthorn Bank is a full-service bank offering a wide
range of financial services to commercial and retail clients. It
operates 20 branches and approximately 40 ATMs located in Missouri
communities in and surrounding Jefferson City, Columbia, Clinton,
Warsaw, Springfield and the greater Kansas City metropolitan
area.
Statements made in this press release that
suggest Hawthorn Bancshares' or management's intentions, hopes,
beliefs, expectations, or predictions of the future include
"forward-looking statements" within the meaning of Section 21E of
the Securities and Exchange Act of 1934, as amended, and include
those relating to the Company's balance sheet repositioning and the
expected effects thereof. It is important to note that actual
results could differ materially from those projected in such
forward-looking statements. Actual results may differ materially
from those contemplated by the forward-looking statements due to,
among others, the following factors: competitive pressures in the
banking industry; changes in the interest rate environment; general
economic conditions; changes in the quality of the Company's loans
and other assets; legislative, regulatory or tax law changes;
credit and market risks relating to increasing inflation; changes
in the securities markets and the value of the Company's
investments; changes in the level and direction of loan
delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for credit losses; and the Company's
ability to maintain sufficient liquidity, primarily through
deposits, in light of recent events in the banking industry.
Additional information concerning factors that could cause actual
results to differ materially from those projected in such
forward-looking statements is contained from time to time in the
Company's quarterly and annual reports filed with the Securities
and Exchange Commission. These forward-looking statements are made
as of the date of this communication, and the Company disclaims any
obligation to update any forward-looking statement or to publicly
announce the results of any revisions to any of the forward-looking
statements included herein, except as required by law.
Contact:
Hawthorn Bancshares, Inc.
Brent M. Giles, Chief Executive Officer
bgiles@hawthornbank.com
573.761.6100
Source: Hawthorn Bancshares, Inc.
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