Dividend payments owed to the U.S. Treasury’s Troubled Asset Relief Fund led Hawthorn Bancshares Inc. to post a big decline in income for the period that ended March 31.
Lee’s Summit-based Hawthorn Bancshares (Nasdaq: HWBK) is the holding company for Hawthorn Bank. It posted first-quarter net income of $4,866, or zero cents a share, down 99.1 percent from $563,527, or 13 cents a share, a year before.
Hawthorn Bancshares had $493,768 in income in the first quarter before a $488,902 preferred dividend payment on the $30.26 million the company borrowed from the Troubled Asset Relief Program in December 2008.
Hawthorn Chairman and CEO James Smith said in a release Friday that Hawthorn Bank remained strong in the first quarter, generating $1.3 million in income. That was whittled down by a $700,000 jump in provision for loan losses to $2.5 million.
Non-performing loans increased to 6.44 percent of total loans as of March 31, up from 4.27 percent the previous year.
“The $20.4 million increase in non-performing loans during the first quarter is centered in three commercial real estate credits, which management is closely monitoring as they migrate through the company’s foreclosure process,” Smith said in a release. “Management’s continued focus on problem-loan resolution is evidenced by a $3.9 million increase from March 31, 2009, in the volume of foreclosed assets.”
Other real estate owned and foreclosed assets reached $11.37 million, up 33.9 percent from $8.49 million last year.
A positive for the bank was net interest income reaching $10.3 million, up 8.2 percent from $9.5 million last year. It was mainly due to an increase in net interest margin to 3.61, up from 3.32 a year ago.
Similar Posts:
- Sterling swings to Q1 $6M loss
- NBT Bancorp earnings up in 1Q
- Texas Capital: Net income up 24%
- Buys boost First Citizens profit to $108M
- TrustCo’s earnings up 9% in 1Q
