Hawthorn Bancshares, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total interest income was $23.8 million, slightly down from $23.9 million in the same period of 2023. However, for the nine months, interest income increased to $71.4 million from $66.7 million year-over-year. Total interest expense rose to $9.5 million in Q3 2024 from $8.7 million in Q3 2023, and for the nine months, it increased to $28.2 million from $23.5 million. Consequently, net interest income for Q3 2024 decreased to $14.3 million from $15.1 million in Q3 2023, while for the nine months, it slightly declined to $43.2 million from $43.3 million.

The company reported a significant increase in non-interest income, which reached $3.8 million in Q3 2024, compared to just $0.6 million in Q3 2023. This contributed to a net income of $4.6 million for Q3 2024, a 77.4% increase from $2.6 million in Q3 2023. For the nine months, net income rose to $13.7 million from $8.4 million, with basic earnings per share increasing to $1.95 from $1.19.

Total assets as of September 30, 2024, were $1.81 billion, down from $1.88 billion at the same time last year. Total deposits decreased to $1.50 billion from $1.58 billion, attributed to a reduction in public funds, although savings accounts saw an increase. The company’s total stockholders' equity improved to $146.5 million from $118.4 million a year earlier.

Strategically, Hawthorn Bancshares sold its mortgage servicing rights portfolio in early 2024, which resulted in a $1.1 million write-down in Q4 2023. The company also repurchased 56,692 common shares during the first nine months of 2024 at an average cost of $19.51 per share, with $3.9 million remaining available for share repurchases under its plan.

The allowance for credit losses was $21.9 million as of September 30, 2024, down from $23.7 million at the end of 2023, reflecting a ratio of 1.50% of loans outstanding. Non-performing assets totaled $8.5 million, or 0.58% of total loans, an increase from 0.53% at the end of 2023. The company reported net charge-offs of $0.6 million for Q3 2024, compared to $0.1 million in Q3 2023.

Overall, Hawthorn Bancshares demonstrated resilience in its financial performance, with significant growth in net income and non-interest income, despite challenges in net interest income and total assets.