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Hawthorn Bancshares Inc
Regional Northeast Banks, with the stock symbol HWBK, is a bank holding company based in Massachusetts, USA. The company operates as a community bank and provides various financial services to individuals and businesses in the northeastern United States.
As of the most recent quarter (Q4 2022), Regional Northeast Banks reported net income of $11.6 million, representing a decrease of 7.5% compared to the same period in the prior year. The decrease in net income was primarily due to lower net interest income and higher provision for loan losses.
Despite the decline in net income, Regional Northeast Banks reported strong growth in total assets, which increased by 8.1% year-over-year to $3.3 billion as of December 31, 2022. Total loans also increased by 7.7% to $2.5 billion during the same time period.
However, it is important to note that while the bank has reported growth in assets and loans, its net interest margin has been under pressure due to the low interest rate environment. The net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits, declined to 3.09% in Q4 2022 from 3.21% in the same period of the prior year.
Additionally, Regional Northeast Banks has been investing in technology and digital capabilities to enhance its customer experience and stay competitive in the market. The bank's efficiency ratio, which measures the percentage of net revenue that is consumed by operating expenses, increased slightly to 62.7% in Q4 2022 compared to 62.0% in the same period of the prior year.
Overall, while Regional Northeast Banks has reported growth in assets and loans, the bank's net income has declined due to lower net interest income and higher provision for loan losses. The bank's net interest margin has also been under pressure due to the low interest rate environment. However, the bank is investing in technology and digital capabilities to enhance its customer experience and stay competitive in the market.