Company Quick10K Filing
Hawthorn Bancshares
Price23.77 EPS3
Shares6 P/E9
MCap149 P/FCF13
Net Debt-44 EBIT37
TEV105 TEV/EBIT3
TTM 2019-09-30, in MM, except price, ratios
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8-K 2018-01-23

HWBK 10Q Quarterly Report

Part I – Financial Information
Item 1. Financial Statements
Item 2 - Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
EX-31.1 hwbk-20200331ex3112d912f.htm
EX-31.2 hwbk-20200331ex312b015d2.htm
EX-32.1 hwbk-20200331ex3219b2e33.htm
EX-32.2 hwbk-20200331ex322265dad.htm

Hawthorn Bancshares Earnings 2020-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 hwbk-20200331x10q.htm 10-Q hwbk_Current_Folio_10Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2020

OR

   Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______________ to ______________

Commission file number: 0‑23636

HAWTHORN BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

Missouri

43‑1626350

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

 

 

132 East High Street, Box 688, Jefferson City, Missouri 65102

(Address of principal executive offices) (Zip Code)

(573) 761‑6100

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

HWBK

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ◻ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ◻ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a  smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

 

 

Large accelerated filer ◻

Accelerated filer ☒

Non-accelerated filer ◻

 

 

 

Smaller reporting company ☒

Emerging growth company ◻

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). ◻ Yes ☒ No

As of May 7, 2020, the registrant had 6,241,302 shares of common stock, par value $1.00 per share, outstanding.

 

 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

HAWTHORN BANCSHARES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

(In thousands, except per share data)

    

2020

    

2019

 

    

(Unaudited)

    

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

16,676

 

$

22,576

Federal funds sold and other interest-bearing deposits

 

 

58,619

 

 

55,545

Cash and cash equivalents

 

 

75,295

 

 

78,121

Certificates of deposit in other banks

 

 

11,106

 

 

10,862

Available-for-sale debt securities, at fair value

 

 

198,049

 

 

175,093

Other investments

 

 

7,296

 

 

5,808

Total investment securities

 

 

205,345

 

 

180,901

Loans held for investment

 

 

1,180,522

 

 

1,168,797

Allowances for loan losses

 

 

(15,693)

 

 

(12,477)

Net loans

 

 

1,164,829

 

 

1,156,320

Loans held for sale, at lower of cost or fair value

 

 

4,286

 

 

428

Premises and equipment - net

 

 

35,092

 

 

35,388

Mortgage servicing rights

 

 

2,274

 

 

2,482

Other real estate owned - net

 

 

12,769

 

 

12,781

Accrued interest receivable

 

 

6,263

 

 

6,481

Cash surrender value - life insurance

 

 

2,411

 

 

2,398

Other assets

 

 

6,828

 

 

6,800

Total assets

 

$

1,526,498

 

$

1,492,962

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

Non-interest bearing demand

 

$

272,578

 

$

261,166

Savings, interest checking and money market

 

 

596,294

 

 

614,331

Time deposits $250,000 and over

 

 

111,779

 

 

104,262

Other time deposits

 

 

198,920

 

 

206,762

Total deposits

 

 

1,179,571

 

 

1,186,521

Federal funds purchased and securities sold under agreements to repurchase

 

 

30,764

 

 

27,272

Federal Home Loan Bank advances and other borrowings

 

 

133,861

 

 

96,919

Subordinated notes

 

 

49,486

 

 

49,486

Operating lease liabilities

 

 

2,162

 

 

2,224

Accrued interest payable

 

 

780

 

 

1,136

Other liabilities

 

 

13,204

 

 

14,366

Total liabilities

 

 

1,409,828

 

 

1,377,924

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $1 par value, authorized 15,000,000 shares; issued 6,519,874 shares

 

 

6,520

 

 

6,520

Surplus

 

 

55,727

 

 

55,727

Retained earnings

 

 

61,708

 

 

61,590

Accumulated other comprehensive loss, net of tax

 

 

(1,522)

 

 

(3,755)

Treasury stock; 278,572, and 243,638 shares, at cost, respectively

 

 

(5,763)

 

 

(5,044)

Total stockholders’ equity

 

 

116,670

 

 

115,038

Total liabilities and stockholders’ equity

 

$

1,526,498

 

$

1,492,962

 

See accompanying notes to the consolidated financial statements (unaudited).

2

HAWTHORN BANCSHARES, INC. AND SUBSIDIARIES

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

(In thousands, except per share amounts)

    

2020

    

2019

INTEREST INCOME

 

 

  

 

 

  

Interest and fees on loans

 

$

14,422

 

$

14,106

Interest and fees on loans held for sale

 

 

 5

 

 

 —

Interest on investment securities:

 

 

  

 

 

  

Taxable

 

 

813

 

 

1,000

Nontaxable

 

 

142

 

 

141

Federal funds sold, other interest-bearing deposits, and certificates of deposit in other banks

 

 

326

 

 

602

Dividends on other investments

 

 

100

 

 

66

Total interest income

 

 

15,808

 

 

15,915

INTEREST EXPENSE

 

 

  

 

 

  

Interest on deposits:

 

 

  

 

 

  

Savings, interest checking and money market

 

 

947

 

 

1,716

Time deposit accounts $250,000 and over

 

 

413

 

 

665

Time deposits

 

 

752

 

 

706

Total interest expense on deposits

 

 

2,112

 

 

3,087

Interest on federal funds purchased and securities sold under agreements to repurchase

 

 

37

 

 

33

Interest on Federal Home Loan Bank advances

 

 

632

 

 

542

Interest on subordinated notes

 

 

501

 

 

624

Total interest expense on borrowings

 

 

1,170

 

 

1,199

Total interest expense

 

 

3,282

 

 

4,286

Net interest income

 

 

12,526

 

 

11,629

Provision for loan losses

 

 

3,300

 

 

150

Net interest income after provision for loan losses

 

 

9,226

 

 

11,479

NON-INTEREST INCOME

 

 

  

 

 

  

Service charges and other fees

 

 

799

 

 

862

Bank card income and fees

 

 

693

 

 

695

Trust department income

 

 

379

 

 

293

Real estate servicing fees, net

 

 

(87)

 

 

84

Gain on sale of mortgage loans, net

 

 

419

 

 

105

Other

 

 

45

 

 

52

Total non-interest income

 

 

2,248

 

 

2,091

Investment securities (losses) gains, net

 

 

(1)

 

 

 1

Gain on branch sale, net

 

 

 —

 

 

2,074

NON-INTEREST EXPENSE

 

 

  

 

 

  

Salaries and employee benefits

 

 

6,121

 

 

5,438

Occupancy expense, net

 

 

766

 

 

698

Furniture and equipment expense

 

 

695

 

 

809

Processing, network, and bank card expense

 

 

976

 

 

1,001

Legal, examination, and professional fees

 

 

367

 

 

329

Advertising and promotion

 

 

249

 

 

258

Postage, printing, and supplies

 

 

241

 

 

210

Other

 

 

1,033

 

 

1,145

Total non-interest expense

 

 

10,448

 

 

9,888

Income before income taxes

 

 

1,025

 

 

5,757

Income tax expense

 

 

157

 

 

1,091

Net income

 

$

868

 

 

4,666

Basic earnings per share

 

$

0.14

 

$

0.74

Diluted earnings per share

 

$

0.14

 

$

0.74

 

See accompanying notes to the consolidated financial statements (unaudited).

3

HAWTHORN BANCSHARES, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

(In thousands)

    

2020

    

2019

Net income

 

$

868

 

$

4,666

Other comprehensive income, net of tax

 

 

  

 

 

  

Investment securities available-for-sale:

 

 

 

 

 

 

Unrealized gains on investment securities available-for-sale, net of tax

 

 

2,180

 

 

1,378

Defined benefit pension plans:

 

 

  

 

 

  

Amortization of prior service cost included in net periodic pension cost, net of tax

 

 

53

 

 

15

Total other comprehensive income

 

 

2,233

 

 

1,393

Total comprehensive income

 

$

3,101

 

$

6,059

 

See accompanying notes to the consolidated financial statements (unaudited).

4

HAWTHORN BANCSHARES, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Accumulated

    

 

 

    

Total

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

Stock -

 

 

Common

 

 

 

 

Retained

 

Comprehensive

 

Treasury

 

holders'

(In thousands)

 

Stock

 

Surplus

 

Earnings

 

Loss

 

Stock

 

Equity

Balance, December 31, 2018

 

$

6,279

 

$

50,173

 

$

54,105

 

$

(6,099)

 

$

(5,044)

 

$

99,414

Net income

 

 

 —

 

 

 —

 

 

4,666

 

 

 —

 

 

 —

 

 

4,666

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

1,393

 

 

 —

 

 

1,393

Cash dividends declared, common stock ($0.10 per share)

 

 

 —

 

 

 —

 

 

(603)

 

 

 —

 

 

 —

 

 

(603)

Balance, March 31, 2019

 

$

6,279

 

$

50,173

 

$

58,168

 

$

(4,706)

 

$

(5,044)

 

$

104,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

6,520

 

$

55,727

 

$

61,590

 

$

(3,755)

 

$

(5,044)

 

$

115,038

Net income

 

 

 —

 

 

 —

 

 

868

 

 

 —

 

 

 —

 

 

868

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

2,233

 

 

 —

 

 

2,233

Purchase of treasury stock

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(719)

 

 

(719)

Cash dividends declared, common stock ($0.12 per share)

 

 

 —

 

 

 —

 

 

(750)

 

 

 —

 

 

 —

 

 

(750)

Balance, March 31, 2020

 

$

6,520

 

$

55,727

 

$

61,708

 

$

(1,522)

 

$

(5,763)

 

$

116,670

 

See accompanying notes to the consolidated financial statements (unaudited).

5

HAWTHORN BANCSHARES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

(In thousands)

    

2020

    

2019

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

868

 

$

4,666

Adjustments to reconcile net income to net cash (used in)  provided by operating activities:

 

 

 

 

 

 

Provision for loan losses

 

 

3,300

 

 

150

Depreciation expense

 

 

562

 

 

464

Net amortization of investment securities, premiums, and discounts

 

 

312

 

 

309

Change in fair value of mortgage servicing rights

 

 

275

 

 

94

Investment securities (losses) gains, net

 

 

 1

 

 

(1)

(Gains) losses on sales and dispositions of premises and equipment

 

 

(55)

 

 

19

Gain on sales and dispositions of other real estate

 

 

 —

 

 

(6)

Gain on branch sale, net

 

 

 —

 

 

(2,074)

Provision for other real estate owned

 

 

12

 

 

28

Decrease in accrued interest receivable

 

 

218

 

 

 2

Increase in cash surrender value - life insurance

 

 

(13)

 

 

(20)

(Increase) decrease in other assets

 

 

(312)

 

 

1,180

Operating lease liabilities

 

 

(62)

 

 

(22)

(Decrease) increase in accrued interest payable

 

 

(356)

 

 

58

Decrease in other liabilities

 

 

(1,367)

 

 

(729)

Origination of mortgage loans for sale

 

 

(16,609)

 

 

(5,420)

Proceeds from the sale of mortgage loans

 

 

13,170

 

 

5,096

Gain on sale of mortgage loans, net

 

 

(419)

 

 

(105)

Other, net

 

 

(67)

 

 

(38)

Net cash (used in) provided by operating activities

 

 

(542)

 

 

3,651

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of certificates of deposit in other banks

 

 

(735)

 

 

(494)

Proceeds from maturities of certificates of deposit in other banks

 

 

491

 

 

 —

Net increase in loans

 

 

(11,809)

 

 

(7,669)

Purchase of available-for-sale debt securities

 

 

(43,984)

 

 

(12,748)

Proceeds from maturities of available-for-sale debt securities

 

 

13,860

 

 

10,030

Proceeds from calls of available-for-sale debt securities

 

 

8,935

 

 

3,820

Proceeds from sales of available-for-sale debt securities

 

 

681

 

 

 —

Purchases of FHLB stock

 

 

(1,491)

 

 

(62)

Proceeds from sales of FHLB stock

 

 

 2

 

 

 3

Purchases of premises and equipment

 

 

(369)

 

 

(971)

Proceeds from sales of premises and equipment

 

 

123

 

 

 —

Payment for branch sale, net

 

 

 —

 

 

(6,700)

Proceeds from sales of other real estate and repossessed assets

 

 

 —

 

 

248

Net cash used in investing activities

 

 

(34,296)

 

 

(14,543)

Cash flows from financing activities:

 

 

 

 

 

 

Net increase in demand deposits

 

 

11,412

 

 

9,723

Net (decrease) increase in interest-bearing transaction accounts

 

 

(18,037)

 

 

12,066

Net (decrease) increase in time deposits

 

 

(325)

 

 

40,944

Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase

 

 

3,492

 

 

(2,550)

Repayment of FHLB advances and other borrowings

 

 

(58)

 

 

(57)

FHLB advances

 

 

37,000

 

 

 —

Purchase of treasury stock

 

 

(719)

 

 

 —

Cash dividends paid - common stock

 

 

(753)

 

 

(603)

Net cash provided by financing activities

 

 

32,012

 

 

59,523

Net (decrease) increase in cash and cash equivalents

 

 

(2,826)

 

 

48,631

Cash and cash equivalents, beginning of year

 

 

78,121

 

 

42,083

Cash and cash equivalents, end of year

 

$

75,295

 

$

90,714

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

Interest

 

$

3,639

 

$

4,228

Income taxes

 

$

 —

 

$

 —

Noncash investing and financing activities:

 

 

 

 

 

 

Other real estate and repossessed assets acquired in settlement of loans

 

$

 —

 

$

116

Net deposits and fixed assets transferred to other assets related to the Branson branch sale

 

$

 —

 

$

(8,885)

Right of use assets obtained in exchange for new operating lease liabilities

 

$

 —

 

$

2,369

See accompanying notes to the consolidated financial statements (unaudited).

 

6

HAWTHORN BANCSHARES, INC.

AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(1)   Summary of Significant Accounting Policies

Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10‑Q, and Rule 10‑01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019.

The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the Coronavirus Disease 2019 (“COVID-19”) pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements.

Stock Dividend On July 1, 2019, the Company paid a special stock dividend of four percent to shareholders of record at the close of business on June 15, 2019. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change.

The following represents significant new accounting principles adopted in 2020:

Intangibles In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40) Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019. The ASU did not have a material impact on the Company's Consolidated Financial Statements.

Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a

7

HAWTHORN BANCSHARES, INC.

AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The ASU did not have a material impact on the Company's Consolidated Financial Statements.

(2)   Loans and Allowance for Loan Losses

Loans

A summary of loans, by major class within the Company’s loan portfolio, at March 31, 2020 and December 31, 2019 is as follows:

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

(in thousands)

    

2020

    

2019

Commercial, financial, and agricultural

 

$

205,657

 

$

199,022

Real estate construction - residential

 

 

23,913

 

 

23,035

Real estate construction - commercial

 

 

87,497

 

 

84,998

Real estate mortgage - residential

 

 

246,859

 

 

252,643

Real estate mortgage - commercial

 

 

585,900

 

 

576,635

Installment and other consumer

 

 

30,696

 

 

32,464

Total loans held for investment

 

$

1,180,522

 

$

1,168,797

 

The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of automotive vehicles. At March 31, 2020, loans of $510.3 million were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit.

Allowance for Loan Losses

The following table illustrates the changes in the allowance for loan losses by portfolio segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

Commercial,

 

Real Estate

 

Real Estate

 

Real Estate

 

Real Estate

 

Installment

 

 

 

 

 

 

 

 

Financial, &

 

Construction -

 

Construction -

 

Mortgage -

 

Mortgage -

 

and Other

 

Un-

 

 

 

(in thousands)

   

Agricultural

   

Residential

   

Commercial

   

Residential

   

Commercial

   

Consumer

   

allocated

   

Total

Balance at beginning of period

 

$

2,918

 

$

64

 

$

369

 

$

2,118

 

$

6,547

 

$

381

 

$

80

 

$

12,477

Additions:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Provision for loan losses

 

 

721

 

 

53

 

 

253

 

 

255

 

 

2,087

 

 

 8

 

 

(77)

 

 

3,300

Deductions:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Loans charged off

 

 

41

 

 

 —

 

 

 —

 

 

19

 

 

22

 

 

52

 

 

 —

 

 

134

Less recoveries on loans

 

 

(25)

 

 

 —

 

 

 —

 

 

(9)

 

 

(2)

 

 

(14)

 

 

 —

 

 

(50)

Net loan charge-offs (recoveries)

 

 

16

 

 

 —

 

 

 —

 

 

10

 

 

20

 

 

38

 

 

 —

 

 

84

Balance at end of period

 

$

3,623

 

$

117

 

$

622

 

$

2,363

 

$

8,614

 

$

351

 

$

 3

 

$

15,693

 

8

HAWTHORN BANCSHARES, INC.

AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

Commercial,

 

Real Estate

 

Real Estate

 

Real Estate

 

Real Estate

 

Installment

 

 

 

 

 

 

 

 

Financial, &

 

Construction -

 

Construction -

 

Mortgage -

 

Mortgage -

 

and Other

 

Un-

 

 

 

(in thousands)

   

Agricultural

   

Residential

   

Commercial

   

Residential

   

Commercial

   

Consumer

   

allocated

   

Total

Balance at beginning of period

 

$

3,237

 

$

140

 

$

757

 

$

2,071

 

$

4,914

 

$

334

 

$

199

 

$

11,652

Additions:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Provision for loan losses

 

 

(60)

 

 

(66)

 

 

(119)

 

 

(196)