Hawthorn Bancshares Inc.
(NASDAQ: HWBK), (the
“Company” or “HWBK”) reported net income of $14.3 million, or $2.20
per diluted share, for the year ended December 31, 2020, compared
to $16.1 million, or $2.47 per diluted share, for the prior year.
The Company reported net income of $5.2 million
for the fourth quarter 2020, an increase of $0.2 million compared
to the linked third quarter 2020 (“linked quarter”) and an increase
of $1.1 million from the prior year quarter. Earnings per diluted
share (“EPS”) was $0.80 for the fourth quarter 2020 compared to
$0.77 and $0.62 for the linked quarter and prior year quarter,
respectively. Net income and EPS for the current quarter increased
from the linked quarter due to lower provision expense in the
current quarter, offset by decreases in non-interest income and net
interest income compared to the linked quarter, described in more
detail below.
Cash dividends paid in 2020 of $0.48 per share
increased $0.04 per share, or 9%, compared to $0.44 per share in
2019. The Company’s Board of Directors approved the Company’s
quarterly dividend of $0.13 per common share for the first quarter
of 2021, payable April 1, 2021 to shareholders as of record March
15, 2021.
Chairman David T. Turner
commented, “We’re very excited to be moving forward into
2021 but before doing so completely we need to reflect on some of
the more significant positive things we accomplished in what have
been unprecedented times. The COVID-19 pandemic continued to
challenge our customers and small business owners in the
communities we served throughout 2020. Our bankers have responded
very well through these troubling times, and we appreciate the
trust and confidence our customers place in us as we journey
together.
We assisted borrowers through numerous
government-assisted lending programs, including the SBA Paycheck
Protection Program (“PPP”) and the Main Street Lending Program
(“MSLP”) to secure funding during the pandemic.
In the fourth quarter we found it prudent to
move some of our borrower loan relationships most impacted by the
pandemic to a non-accrual status, totaling approximately $30
million. We will continue to monitor and work closely with them as
they manage through their particular challenges.”
Turner continued, “Despite these challenges, we
continued to deliver strong financial results in 2020. Our results
in the fourth quarter surpassed what we felt were exceedingly
strong results in the third quarter. For the full year 2020, we
delivered $14.3 million in net income to our shareholders compared
to $16.1 million in 2019. On a pre-tax pre-provision basis, we
delivered $23.3 million in earnings in 2020; which is $2.2 million,
or 10% higher than in 2019.
I’m very proud of each and every banker and all
that we accomplished together. Unprecedented times call for
unprecedented performance, and I saw that across every team in our
bank in 2020.
Welcome 2021!”
Highlights
-
Earnings – Net income for the full year 2020 was
$14.3 million and EPS was $2.20, compared to net income of $16.1
million and EPS of $2.47 for the prior year. Pre-tax and
pre-provision income (“PTPP”) of $23.3 million for the full year
increased $2.2 million, or 10%, from the prior year. Net income in
the fourth quarter 2020 was $5.2 million and EPS was $0.80. PTPP of
$6.7 million for the fourth quarter decreased $0.6 million, or 8%
from the linked quarter, and increased $1.4 million, or 26%, from
the fourth quarter 2019.
- Net
interest income and net interest margin – Net interest
income for the full year 2020 was $53.3 million and net interest
margin, on a FTE basis, was 3.48% compared to net interest income
of $48.7 million and net interest margin of 3.51% for the prior
year. Net interest income of $13.6 million for the fourth quarter
2020, decreased $0.3 million from the linked quarter, and increased
$1.0 million from the fourth quarter 2019. Net interest margin, on
a FTE basis, was 3.40% for the fourth quarter, a decrease from
3.50% for the linked quarter, and a reduction from 3.63% for the
fourth quarter of 2019.
-
Loans – Loans held for investment increased by
$7.8 million, or 0.6%, equal to $1.3 billion as of December 31,
2020 as compared to the linked quarter. Year-over-year, loans grew
$118 million, or 10.1%, from $1.2 billion as of December 31, 2019.
Year-over-year growth in loans was primarily due to an increase in
commercial loans for customers who participated in the PPP.
- Asset
quality – Non-performing loans totaled $34.6 million at
December 31, 2020, an increase of $28.8 million from $5.8 million
at the end of the linked quarter primarily due to placing on
non-accrual several loans described in more detail below. The
allowance for loan losses to total loans was 1.41% at December 31,
2020, compared to 1.39% at September 30, 2020 and 1.07% at December
31, 2019.
-
Deposits – Total deposits increased by $56.9
million, or 4.3%, equal to $1.4 billion as of December 31, 2020 as
compared to the linked quarter. Year-over-year deposits grew $197.1
million, or 16.6%, from $1.2 billion as of December 31, 2019.
-
Capital – Total shareholder’s equity was $130.6
million and the tangible common equity to tangible assets ratio was
7.53% at December 31, 2020 as compared to 7.45% and 7.71% from the
linked quarter and fourth quarter of 2019, respectively. Regulatory
capital ratios remain “well-capitalized”, with tier 1 leverage
ratio of 10.19% and a total risk-based capital ratio of
14.97%.
- Share
Repurchase Program In the third quarter of 2020, the
Company’s Board of Directors authorized the purchase of up to $2.5
million market value of the Company’s common stock. Management was
given discretion to determine the number and pricing of the shares
to be purchased, as well as, the timing of any such purchases. As
of December 31, 2020, $2.4 million remained for share repurchase
pursuant to that authorization.
Net Interest Income and Net Interest
Margin
Net interest income for the full year 2020 was
$53.3 million and net interest margin was 3.48%, on a FTE basis,
compared to net interest income of $48.7 million and net interest
margin of 3.51% for the prior year. Net interest income of $13.6
million for the fourth quarter 2020, decreased $0.3 million from
the linked quarter, and increased $1.0 million from the fourth
quarter 2019. Net interest margin, on a FTE basis, was 3.40% for
the fourth quarter, compared to 3.50% for the linked quarter, and
3.63% for the fourth quarter of 2019. Contributing to the decrease
in net interest income compared to the linked quarter was the
reversal of $1.1 million of interest income previously recorded on
approximately $30 million of loans modified under the CARES Act
which were moved to non-accrual in the fourth quarter. Also
included in the fourth quarter results were $0.5 million in fees
earned on loans associated with the government-sponsored Main
Street Lending Program (“MSLP”). The increase in net interest
income from the prior year quarter was driven primarily by a
decrease in interest expense on deposits and borrowings.
Loans
Loans held for investment increased by $7.8
million, or 0.6%, to $1.3 billion as of December 31, 2020 as
compared to the linked quarter and increased by $118 million, or
10.1%, from the prior year quarter. Growth in loans over the prior
year quarter was primarily due to an increase in commercial loans
for customers who participated in the PPP.
The yield earned on average loans held for
investment was 4.53%, on a FTE basis, for the fourth quarter,
compared to 4.66% for the linked quarter and 5.07% for the prior
year quarter.
Asset Quality
Non-performing loans totaled $34.6 million at
December 31, 2020, an increase of $28.8 million from $5.8 million
at the end of the linked quarter, primarily due to placing on
non-accrual several significant loans which had been previously
modified in accordance with the CARES Act passed by Congress.
Non-performing loans to total loans was 2.69% at December 31, 2020,
and 0.45% and 0.43% at the end of the linked quarter and prior year
quarter, respectively.
At December 31, 2020, $5.1 million of the
Company’s allowance for loan losses was allocated to impaired loans
totaling $37.3 million, compared to $581,000 of the Company's
allowance for loan losses allocated to impaired loans totaling $8.1
million at the end of the linked quarter. At December 31, 2020
management determined that $11.9 million, or 32%, of total impaired
loans required no reserve allocation compared to $2.7 million, or
33%, of total impaired loans at the end of the linked quarter
primarily due to adequate collateral values.
In the fourth quarter 2020, the Company had net
loan charge-offs of $51,000 compared to net loan charge-offs of
$58,000 in the linked quarter, and $1,000 of net loan charge-offs
in the prior year quarter. The Company recorded a provision for
credit losses of $0.4 million for the fourth quarter 2020 compared
to $1.2 million for the linked quarter and $0.3 million for the
fourth quarter 2019.
The allowance for loan losses at December 31,
2020 was $18.1 million, or 1.41% of outstanding loans, and 52.4% of
non-performing loans. At September 30, 2020, the allowance for loan
losses was $17.8 million, or 1.39% of outstanding loans, and 305.5%
of non-performing loans. At December 31, 2019, the allowance for
loan losses was $12.5 million, or 1.07% of outstanding loans, and
246.1% of non-performing loans. The allowance for loan losses
represents management’s best estimate of probable losses inherent
in the loan portfolio and is commensurate with risks in the loan
portfolio as of December 31, 2020.
Deposits
Total deposits at December 31, 2020 were $1.4
billion, an increase of $56.9 million, or 4.3%, from September 30,
2020, and an increase of $197.1 million, or 16.6%, from December
31, 2019. Growth in deposits over the linked quarter was positively
impacted by the funding cycle of public funds depositors.
Core deposits, defined as total deposits
excluding time deposits, were $1.2 billion at December 31, 2020, an
increase of $216.7 million, or 21.0%, from December 31, 2019.
Growth in year-over-year deposits is indicative of the higher
savings rate customers have chosen in response to pandemic
conditions.
Noninterest Income
Total noninterest income for 2020 was $14.6
million, an increase of $5.7 million, or 63.9%, from 2019. The
primary reason for the improvement was an increase in gain on sale
of mortgage loans of $6.3 million, or 822.1%, offset by a decrease
in service charge and other fees of $0.7 million, or 18.2%.
For the quarter ended December 31, 2020, total
noninterest income was $4.7 million, a decrease of $0.4 million, or
7.5%, from the linked quarter, and an increase of $2.4 million, or
104.0%, from the prior year quarter. These changes were primarily
due to the decrease in the gain on sale of real estate mortgages in
the current quarter compared to the linked quarter, and the
increase in gain on sale of real estate mortgages from the prior
year quarter.
Noninterest Expense
Noninterest expense for 2020 was $44.7 million,
an increase of $6.0 million, or 15.4%, from 2019. Salaries and
employee benefits expense contributed $4.6 million to the current
increase. The increase in noninterest expense in 2020 as compared
to the prior year is primarily due to the increased costs for
mortgage lender’s salaries, commissions paid, and benefits
resulting from hiring additional personnel for the mortgage lending
group. The mortgage lending group began its formation in late 2019,
and grew significantly in terms of resources and production
capacity with the addition of 25 full-time equivalent (“FTE”)
personnel, resulting in 36 FTEs at December 31, 2020. The Company’s
efficiency ratio was 65.8% in 2020, compared to 67.2% for the prior
year.
The fourth quarter 2020 noninterest expense was
$11.6 million, equal to the linked quarter, and $9.6 million for
the prior year quarter. The fourth quarter efficiency ratio was
63.5% compared to 61.4%, and 64.4% for the linked quarter and prior
year quarter, respectively.
Capital
The Company maintains its “well capitalized”
regulatory capital position. At the end of the fourth quarter 2020,
capital ratios were as follows: total risk-based capital to
risk-weighted assets 14.97%, tier 1 capital to risk-weighted assets
13.37%; tier 1 leverage 10.19% and tangible common equity to
tangible assets 7.53%.
[Tables follow]
FINANCIAL SUMMARY(unaudited)$000, except per
share data
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
Statement of income
information: |
|
2020 |
|
2020 |
|
2019 |
Total interest income |
|
$ |
15,498 |
|
$ |
15,958 |
|
$ |
15,946 |
Total interest expense |
|
|
1,942 |
|
|
2,116 |
|
|
3,355 |
Net interest income |
|
|
13,556 |
|
|
13,842 |
|
|
12,591 |
Provision for loan losses |
|
|
400 |
|
|
1,200 |
|
|
300 |
Noninterest income |
|
|
4,693 |
|
|
5,075 |
|
|
2,300 |
Investment securities gains, net |
|
|
43 |
|
|
12 |
|
|
— |
Noninterest expense |
|
|
11,586 |
|
|
11,616 |
|
|
9,582 |
Pre-tax income |
|
|
6,306 |
|
|
6,113 |
|
|
5,009 |
Income taxes |
|
|
1,123 |
|
|
1,153 |
|
|
941 |
Net income |
|
$ |
5,183 |
|
$ |
4,960 |
|
$ |
4,068 |
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic: |
|
$ |
0.80 |
|
$ |
0.77 |
|
$ |
0.62 |
Diluted: |
|
$ |
0.80 |
|
$ |
0.77 |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
|
December 31, |
Statement of income
information: |
|
2020 |
|
2019 |
Total interest income |
|
$ |
62,985 |
|
$ |
63,970 |
|
Total interest expense |
|
|
9,722 |
|
|
15,232 |
|
Net interest income |
|
|
53,263 |
|
|
48,738 |
|
Provision for loan losses |
|
|
5,800 |
|
|
1,150 |
|
Noninterest income |
|
|
14,649 |
|
|
8,937 |
|
Investment securities gains (losses), net |
|
|
61 |
|
|
(40 |
) |
Gain on sale of branch, net |
|
|
— |
|
|
2,183 |
|
Noninterest expense |
|
|
44,697 |
|
|
38,731 |
|
Pre-tax income |
|
|
17,476 |
|
|
19,937 |
|
Income taxes |
|
|
3,183 |
|
|
3,823 |
|
Net income |
|
$ |
14,293 |
|
$ |
16,114 |
|
Earnings per
share: |
|
|
|
|
|
|
Basic: |
|
$ |
2.20 |
|
$ |
2.47 |
|
Diluted: |
|
$ |
2.20 |
|
$ |
2.47 |
|
FINANCIAL SUMMARY
(continued)(unaudited)$000, except per share
data
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Key financial
ratios: |
2020 |
|
2020 |
|
2019 |
|
Return on average assets (YTD) |
|
0.88 |
% |
|
0.76 |
% |
|
1.09 |
% |
Return on average common equity (YTD) |
|
11.71 |
% |
|
10.15 |
% |
|
14.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2020 |
|
2020 |
|
2019 |
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
1.41 |
% |
|
1.39 |
% |
|
1.07 |
% |
Non-performing loans to total loans (a) |
|
2.69 |
% |
|
0.45 |
% |
|
0.43 |
% |
Non-performing assets to loans (a) |
|
3.64 |
% |
|
1.44 |
% |
|
1.53 |
% |
Non-performing assets to assets (a) |
|
2.70 |
% |
|
1.10 |
% |
|
1.20 |
% |
Performing TDRs to loans (a) |
|
0.22 |
% |
|
0.19 |
% |
|
0.22 |
% |
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
non-performing loans (a) |
|
52.39 |
% |
|
305.49 |
% |
|
246.09 |
% |
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
Average stockholders' equity to average total assets (YTD) |
|
7.48 |
% |
|
7.47 |
% |
|
7.38 |
% |
Period-end stockholders' equity to period-end assets (YTD) |
|
7.53 |
% |
|
7.45 |
% |
|
7.71 |
% |
Total risk-based capital ratio |
|
14.97 |
% |
|
15.05 |
% |
|
14.89 |
% |
Tier 1 risk-based capital ratio |
|
13.37 |
% |
|
13.28 |
% |
|
13.04 |
% |
Common equity Tier 1 capital |
|
10.00 |
% |
|
9.97 |
% |
|
9.86 |
% |
Tier 1 leverage ratio |
|
10.19 |
% |
|
9.99 |
% |
|
10.73 |
% |
(a) Non-performing loans include loans 90 days past due and
accruing and nonaccrual loans.
|
|
|
|
|
|
|
|
|
|
December 31, |
September 30, |
December 31, |
Balance sheet
information: |
|
2020 |
|
2020 |
|
2019 |
|
Total assets |
|
$ |
1,733,731 |
|
$ |
1,669,770 |
|
$ |
1,492,962 |
|
Loans held for investment |
|
|
1,286,967 |
|
|
1,279,165 |
|
|
1,168,797 |
|
Allowance for loan losses |
|
|
(18,113 |
) |
|
(17,764 |
) |
|
(12,477 |
) |
Loans held for sale |
|
|
5,099 |
|
|
7,886 |
|
|
428 |
|
Investment securities |
|
|
204,383 |
|
|
193,175 |
|
|
180,901 |
|
Deposits |
|
|
1,383,606 |
|
|
1,326,752 |
|
|
1,186,521 |
|
Total stockholders’ equity |
|
|
130,589 |
|
|
124,367 |
|
|
115,038 |
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
20.12 |
|
$ |
19.15 |
|
$ |
17.63 |
|
Market price per share |
|
$ |
21.90 |
|
$ |
18.94 |
|
$ |
24.52 |
|
Net interest spread (FTE) (YTD) |
|
|
3.25 |
% |
|
3.27 |
% |
|
3.20 |
% |
Net interest margin (FTE) (YTD) |
|
|
3.48 |
% |
|
3.50 |
% |
|
3.51 |
% |
Net interest spread (FTE) (QTR) |
|
|
3.21 |
% |
|
3.30 |
% |
|
3.33 |
% |
Net interest margin (FTE) (QTR) |
|
|
3.40 |
% |
|
3.50 |
% |
|
3.63 |
% |
Efficiency ratio (YTD) |
|
|
65.82 |
% |
|
66.67 |
% |
|
67.15 |
% |
Efficiency ratio (QTR) |
|
|
63.49 |
% |
|
61.41 |
% |
|
64.35 |
% |
NON-GAAP FINANCIAL MEASURES (unaudited)$000,
except per share data
Use of Non-GAAP Measures
Several financial measures in this press release
are non-GAAP, meaning they are not presented in accordance with
generally accepted accounting principles (GAAP) in the U.S. The
non-GAAP items presented in this press release are non-GAAP net
income, non-GAAP basic earnings per share, non-GAAP diluted
earnings per share, non-GAAP return on average assets and non-GAAP
return on average common equity. These measures include the
adjustments to exclude the additional loan loss provision recorded
in the periods presented below caused by the impact on current
economic conditions due to the COVID-19 pandemic and the impact of
the gain on the sale of our Branson branch that closed during the
quarter ended March 31, 2019. These are non-recurring and not
considered indicative of underlying earnings performance. The
Company believes that the exclusion of these items provides a
useful basis for evaluating the Company's underlying performance,
but should not be considered in isolation and is not in accordance
with, or a substitute for, evaluating performance utilizing GAAP
financial information. The Company uses non-GAAP measures to
analyze its financial performance and to make financial comparisons
to prior periods presented on a similar basis. The Company believes
that providing such adjusted results allows investors to better
understand the Company's comparative operating performance for the
periods presented. Non-GAAP measures are not formally defined by
GAAP or codified in the federal banking regulations, and other
entities may use calculation methods that differ from those used by
the Company. The Company has reconciled each of these measures to a
comparable GAAP measure below:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
Statement of income
information: |
|
2020 |
|
2020 |
|
2019 |
Net income – GAAP |
|
$ |
5,183 |
|
$ |
4,960 |
|
$ |
4,068 |
Effect of ALL provision COVID-19 (a) |
|
|
— |
|
|
632 |
|
|
— |
Effect of net gain on branch sale (b) |
|
|
— |
|
|
— |
|
|
— |
Net income - non-GAAP |
|
$ |
5,183 |
|
$ |
5,592 |
|
$ |
4,068 |
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic – GAAP |
|
$ |
0.80 |
|
$ |
0.77 |
|
$ |
0.62 |
Effect of ALL provision COVID-19 (a) |
|
|
— |
|
|
0.10 |
|
|
— |
Effect of net gain on branch sale (b) |
|
|
— |
|
|
— |
|
|
— |
Basic - non-GAAP |
|
$ |
0.80 |
|
$ |
0.87 |
|
$ |
0.62 |
Diluted – GAAP |
|
$ |
0.80 |
|
$ |
0.77 |
|
$ |
0.62 |
Effect of ALL provision COVID-19 (a) |
|
|
— |
|
|
0.10 |
|
|
— |
Effect of net gain on branch sale (b) |
|
|
— |
|
|
— |
|
|
— |
Diluted - non-GAAP |
|
$ |
0.80 |
|
$ |
0.87 |
|
$ |
0.62 |
NON-GAAP FINANCIAL MEASURES
(continued)(unaudited)$000, except per share
data
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
|
December 31, |
Statement of income
information: |
|
2020 |
|
2019 |
|
Net income - GAAP |
|
$ |
14,293 |
|
$ |
16,114 |
|
Effect of ALL provision COVID-19 (a) |
|
|
3,476 |
|
|
— |
|
Effect of net gain on branch sale (b) |
|
|
— |
|
|
(1,725 |
) |
Net income - non-GAAP |
|
$ |
17,769 |
|
$ |
14,389 |
|
Earnings per
share: |
|
|
|
|
|
|
Basic – GAAP |
|
$ |
2.20 |
|
$ |
2.47 |
|
Effect of ALL provision COVID-19 (a) |
|
|
0.54 |
|
|
— |
|
Effect of net gain on branch sale (b) |
|
|
— |
|
|
(0.26 |
) |
Basic - non-GAAP |
|
$ |
2.74 |
|
$ |
2.21 |
|
Diluted – GAAP |
|
$ |
2.20 |
|
$ |
2.47 |
|
Effect of ALL provision COVID-19 (a) |
|
|
0.54 |
|
|
— |
|
Effect of net gain on branch sale (b) |
|
|
— |
|
|
(0.26 |
) |
Diluted - non-GAAP |
|
$ |
2.74 |
|
$ |
2.21 |
|
|
(a) An additional $4.4 million pre-tax ALL
provision, $3.5 million after tax, was recorded during the year
ended December 31, 2020 due to current economic conditions
resulting from the COVID-19 pandemic.
(b) The gain on the sale of the Branson Branch
was $2.2 million pre-tax, $1.7 million after tax, for the year
ended December 31, 2019.
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
Key financial ratios: |
|
2020 |
|
2020 |
|
2019 |
|
Return on average assets (YTD)
– GAAP |
|
0.88 |
% |
0.76 |
% |
1.09 |
% |
Effect of ALL provision
COVID-19 (a) |
|
0.21 |
|
0.29 |
|
— |
|
Effect of net gain on branch
sale (b) |
|
— |
|
— |
|
(0.12 |
) |
Return on average assets (YTD)
- non-GAAP |
|
1.09 |
% |
1.05 |
% |
0.97 |
% |
Return on average common
equity (YTD) – GAAP |
|
11.71 |
% |
10.15 |
% |
14.77 |
% |
Effect of ALL provision
COVID-19 (a) |
|
2.84 |
|
3.87 |
|
— |
|
Effect of net gain on branch
sale (b) |
|
— |
|
— |
|
(1.58 |
) |
Return on average common
equity (YTD) - non-GAAP |
|
14.55 |
% |
14.02 |
% |
13.19 |
% |
|
|
|
|
|
|
|
|
(a) An additional $4.4 million pre-tax ALL
provision, $3.5 million after tax, was recorded during the year
ended December 31, 2020 due to current economic conditions
resulting from the COVID-19 pandemic.
(b) The gain on the sale of the Branson Branch
was $2.2 million pre-tax, $1.7 million after tax, for the year
ended December 31, 2019.
LOAN MODIFICATIONS (unaudited)$000, except per
share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Modifications on Non-accrual under the CARES Act by
NAICS Code as of December 31, 2020 |
|
|
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
|
|
|
|
|
Total Remaining |
Full |
Total Remaining |
|
|
|
Total Remaining |
|
|
|
|
|
Interest |
Loan |
Deferral |
Loan |
Extended |
Loan |
|
|
|
Industry Category |
|
Only |
Modifications |
(1 |
) |
Modifications |
Amortizations |
Modifications |
Totals |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate and Rental and
Leasing |
|
$ |
— |
|
|
— |
% |
$ |
3,120 |
|
|
3.6 |
% |
$ |
— |
|
|
— |
% |
$ |
3,120 |
|
Accommodations and Food
Services |
|
|
— |
|
|
— |
|
|
21,530 |
|
|
24.8 |
|
|
— |
|
|
— |
|
|
21,530 |
|
Cinemas |
|
|
— |
|
|
— |
|
|
4,691 |
|
|
5.4 |
|
|
— |
|
|
— |
|
|
4,691 |
|
Health
Care and Social Assistance |
|
|
— |
|
|
— |
|
|
208 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
208 |
|
Total modifications |
|
$ |
— |
|
|
— |
% |
$ |
29,549 |
|
|
34.1 |
% |
$ |
— |
|
|
— |
% |
$ |
29,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Remaining Loan Modifications under the CARES Act by
NAICS Code as of December 31, 2020 |
|
|
|
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
|
|
|
|
|
Total Remaining |
Full |
Total Remaining |
|
|
|
Total Remaining |
|
|
|
|
|
Interest |
Loan |
Deferral |
Loan |
Extended |
Loan |
|
|
|
Industry Category |
|
Only |
Modifications |
(1 |
) |
Modifications |
Amortizations |
Modifications |
Totals |
Real Estate and Rental and
Leasing |
|
$ |
5,166 |
|
|
6.0 |
% |
$ |
6,338 |
|
|
7.3 |
% |
$ |
501 |
|
|
0.6 |
% |
$ |
12,005 |
|
Accommodations and Food
Services |
|
|
19,859 |
|
|
22.9 |
|
|
32,486 |
|
|
37.5 |
|
|
4,621 |
|
|
5.3 |
|
|
56,966 |
|
Construction |
|
|
144 |
|
|
0.2 |
|
|
- |
|
|
— |
|
|
— |
|
|
— |
|
|
144 |
|
Churches |
|
|
263 |
|
|
0.3 |
|
|
- |
|
|
— |
|
|
— |
|
|
— |
|
|
263 |
|
Lands and lots |
|
|
2,005 |
|
|
2.3 |
|
|
- |
|
|
— |
|
|
— |
|
|
— |
|
|
2,005 |
|
Cinemas |
|
|
— |
|
|
— |
|
|
4,691 |
|
|
5.4 |
|
|
— |
|
|
— |
|
|
4,691 |
|
Health Care and Social
Assistance |
|
|
— |
|
|
— |
|
|
208 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
208 |
|
Arts, Entertainment,
Recreation |
|
|
10,165 |
|
|
11.7 |
|
|
- |
|
|
— |
|
|
— |
|
|
— |
|
|
10,165 |
|
Non-NAICS (Consumer) |
|
|
— |
|
|
0.0 |
|
|
232 |
|
|
0.3 |
|
|
— |
|
|
— |
|
|
232 |
|
Total modifications |
|
$ |
37,602 |
|
|
43.4 |
% |
$ |
43,955 |
|
|
50.7 |
% |
$ |
5,122 |
|
|
5.9 |
% |
$ |
86,679 |
|
|
|
|
|
|
|
|
|
|
|
|
Remaining loan
modifications under the CARES Act as a percent of the total loan
portfolio |
|
|
|
|
|
|
|
|
6.7% |
|
Total loan modifications under
the CARES Act to date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$296,890 |
|
Total loan
modifications under the CARES Act to date as a percent of the total
loan portfolio |
|
|
|
|
|
|
|
|
23.1% |
|
(1) Of the $44 million loan modifications on
full deferral, $29.5 million, or 34.1% of total remaining loan
modifications, went to nonaccrual status during the fourth quarter
of 2020.
About Hawthorn Bancshares
Hawthorn Bancshares, Inc., a financial-bank
holding company headquartered in Jefferson City, Missouri, is the
parent company of Hawthorn Bank of Jefferson City with locations in
the Missouri communities of Lee's Summit, Liberty, St. Louis,
Springfield, Independence, Columbia, Clinton, Osceola, Warsaw,
Belton, Drexel, Harrisonville, California and St. Robert.
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. You can
identify forward-looking statements from the use of words such as
“will be,” “intend,” “continue,” “believe,” “may,” “expect,”
“hope,” “anticipate,” “goal,” “forecast,” “estimates,” “offers,”
“plans,” “would” or other similar expressions or other comparable
terms or discussions of strategy, plans or intentions contained
herein, including statements pertaining to the uncertain financial
impact of COVID-19. Forward-looking statements are subject to
numerous assumptions, risks and uncertainties, many of which may be
incorrect or imprecise and are beyond our ability to control or
predict. There is no assurance the events or circumstances
reflected in any forward-looking statements will occur. Additional
information concerning factors that could cause actual results to
differ materially from those reflected in any forward-looking
statements is contained from time to time in the Company's
quarterly and annual reports filed with the Securities and Exchange
Commission. We claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 with respect to any forward-looking
statements attributable to us.
Contact:
Hawthorn Bancshares Inc.
Stephen E. Guthrie,
Chief Financial Officer
TEL: 573.761.6100
Fax: 573.761.6272
www.HawthornBancshares.com
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