other material
confidence high
sentiment neutral
materiality 0.65
Hawthorn Bancshares sells $83.7M in low-yield securities, records $9.1M after-tax loss to reposition balance sheet
HAWTHORN BANCSHARES, INC.
- Sold $83.7M book value of investment securities (avg yield 1.57%), realizing after-tax loss of $9.1M.
- Securities sold included U.S. Treasuries ($1.0M), MBS ($57.1M), agencies ($20.5M), municipal ($5.1M).
- Proceeds to be reinvested in higher-yield assets and pay down borrowings; expected accretive to earnings, NIM, ROA.
- Loss on sale expected to have neutral impact on consolidated shareholders' equity and tangible book value per share.
- Regulatory capital remains well above well-capitalized thresholds.