YOUR BUSINESS AUTHORITY
Springfield, MO
Jefferson City-based Hawthorn Bancshares Inc.'s (Nasdaq: HWBK) profits fell 95% in 2023, with a net loss during the final three months of the year and one-time expenses cited in the company's latest quarterly report.
The company, which operates its sole Hawthorn Bank branch in Springfield at 321 W. Battlefield Road, had $956,000 in 2023 net income, compared with $20.8 million in 2022, according to a news release. Diluted share earnings dropped to 14 cents from $2.94 per share year over year.
The company's fourth-quarter net loss was $7.4 million, compared with profits of $4.7 million during the final three months of 2022.
"During the fourth quarter, several strategic decisions were made, which significantly impacted our financial results. These decisions align with our commitment to improving our balance sheet position, improved profitability and concentration on our core lines of business," Hawthorn Bank CEO Brent Giles said in the release. "We repositioned our balance sheet by selling a portion of our investment portfolio, which allows us the ability to reinvest the proceeds into higher earning assets. In addition, we made a valuation adjustment related to the sale of our mortgage servicing rights and a write-off of an investment in an account acquisition project that is not part of our strategy going forward.
"We also realized an increase of $1.5 million in provision for credit losses in the fourth quarter as a result of the downgrade of one commercial relationship."
As of Dec. 31, Hawthorn Bank's assets were $1.9 billion and deposits were $1.6 billion. The company has branches in the Missouri communities of Lee's Summit, Liberty, St. Louis, Springfield, Independence, Columbia, Clinton, Osceola, Warsaw, Belton, Drexel, Harrisonville and California, according to the release.
HWBK shares were trading at $25.02 as of 10 a.m., compared with a 52-week range of $15.02 to $26 per share.
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.