Mon, May 12, 4:08 PM (63 days ago)
**Hawthorn Bancshares, Inc. (HWBK) Q1 2025 Financial Performance** **Financial Health and Performance Metrics:** - **Revenue:** $23.5 million (up 2.9% YoY) - **Net Income:** $5.4 million (up 20.8% YoY) - **Earnings per Share (EPS):** $0.77 (up 22.2% YoY) - **Profit Margins:** Net interest margin increased to 3.67% from 3.39% YoY - **Cash Flow:** Net cash provided by operating activities was $5.7 million - **Earnings Changes:** Net income increased by $0.9 million compared to Q1 2024 **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by net interest income and non-interest income. - **Expense Management:** Non-interest expense decreased slightly by 0.6%. - **Asset Quality:** Non-performing assets decreased to $3.1 million (0.21% of total loans). - **Capital Ratios:** Maintained strong capital ratios, exceeding well-capitalized thresholds. **Trends and Uncertainties:** - **Interest Rates:** Sensitivity to interest rate changes, with a projected impact on net interest income. - **Economic Conditions:** Dependence on local economic conditions in Missouri. - **Regulatory Environment:** Subject to banking regulations and periodic examinations. **Future Operations Impact:** - **Growth Strategy:** Focus on commercial banking, retail mortgage lending, and retail banking services. - **Risk Management:** Ongoing monitoring of credit risk and liquidity management. - **Technological Enhancements:** Utilizing improved technology for customer satisfaction and operational efficiency. **Summary:** HWBK demonstrated strong financial health in Q1 2025, with notable increases in revenue, net income, and EPS. The company maintained robust asset quality and capital ratios, positioning it well for future growth. However, it remains vigilant about interest rate risks and economic uncertainties. The strategic focus on community banking and technological advancements is expected to drive continued success.