It's like Bank of America, but specifically for Missouri.

Think of it as U.S. Bank, but with all its operations focused on communities across Missouri.

A regional bank for Missouri, offering full services, much like a scaled-down version of JPMorgan Chase for that state.

• Deposit Services: Provides a range of deposit accounts including checking, savings, money market, IRAs, and certificates of deposit for personal and commercial customers.
• Lending Services: Offers various loan products such as commercial, industrial, real estate (commercial and residential), personal, consumer, equipment, operating, and Small Business Administration (SBA) loans.
• Card Services: Issues debit and credit cards to facilitate transactions for its customers.
• Trust and Wealth Management Services: Delivers estate planning, investment, and asset management services to individuals and businesses.
• Ancillary Banking Services: Supplies additional banking functionalities like cash management, safety deposit boxes, brokerage, and internet banking.

Hawthorn Bancshares (HWBK) operates as a bank holding company, providing a wide range of financial services rather than selling to a few major customers in the traditional sense. Its customer base is diversified across individuals and businesses within the communities it serves. Therefore, it primarily serves the following categories of customers:

• Individual Consumers and Households: This category includes individuals who utilize the bank's personal banking services such as checking, savings, money market, and individual retirement accounts. They also access consumer loans (single payment personal, installment), debit and credit cards, and trust services including estate planning, investment, and asset management.
• Businesses and Commercial Entities: This category encompasses a variety of commercial clients, including small to medium-sized businesses and commercial real estate developers. They utilize services such as commercial and industrial loans, commercial and residential real estate loans, equipment, operating, and Small Business Administration (SBA) loans, as well as cash management services.

Brent M. Giles Chief Executive Officer

Mr. Giles has served as CEO of Hawthorn Bank and Director of Hawthorn Bancshares, Inc. since May 2023. Prior to joining Hawthorn, he spent three years as the CEO of Wisconsin Bank and Trust and Bank of Blue Valley. From 2003 until its sale in 2019, Mr. Giles was the Chairman and Chief Executive Officer of Liberty Bancorp, Inc. and BankLiberty, where he took the company public and oversaw multiple acquisitions and organic growth, establishing it as a top-performing community bank. BankLiberty received numerous accolades, including "best bank" and "best place to work." His extensive experience includes early roles in commercial banking and nine years as an FDIC examiner.

Christopher Eugene Hafner Chief Financial Officer

Mr. Hafner has served as Chief Financial Officer of Hawthorn Bancshares and Hawthorn Bank since October 2023, bringing over 30 years of experience in financial institutions. From 2016 to 2022, he was the Chief Accounting Officer of Crossfirst Bank, where he guided his team through its initial public offering in 2019. Earlier in his career, he served as Chief Financial Officer and Chief Risk Officer of MoBank from 2011 until its acquisition in 2015, and as Chief Financial Officer of First National Bank of Kansas from 2005 until its merger in 2011.

Gregg A. Bexten President

Mr. Bexten has served as a director and President of both Hawthorn Bancshares and Hawthorn Bank since May 2023. Previously, he was the Regional President of the Central Region from 2014 to May 2023. From 2000 to 2014, he worked as a commercial lender in the Central Region, holding titles such as Senior Vice President and Vice President. Before joining Hawthorn Bank, Mr. Bexten was a Commercial Lender with Midwest Independent Bank and a Commissioned Bank Examiner for the Federal Reserve Bank of St. Louis.

Kathleen L. Bruegenhemke Executive Vice President, Chief Risk Officer, Secretary, Chief Operations Officer

Ms. Bruegenhemke has been a director of Hawthorn Bancshares and Hawthorn Bank since March 2017 and has served as Executive Vice President since May 2024. She has held the position of Senior Vice President and Secretary of the Company since 1997 and Chief Risk Officer since June 2006. With a brief exception, she has served as Chief Operations Officer of Hawthorn Bank since January 2017. Her prior roles include Columbia Market President from October 2014 to December 2016 and Internal Auditor for Hawthorn Bank (or its predecessors) from January 1992 to November 1997.

Martin J. Weishaar Executive Vice President and General Counsel

Mr. Weishaar serves as Executive Vice President and General Counsel for Hawthorn Bancshares.

The key risks for Hawthorn Bancshares (HWBK) are primarily related to its core banking operations and its geographic concentration.

1. Credit Risk: As a commercial and personal banking service provider, Hawthorn Bancshares faces inherent credit risk. This risk stems from the potential for borrowers to default on their loans, which include commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans. Changes in the quality of the company's loans and other assets, as well as fluctuations in loan delinquencies and write-offs, directly impact the bank's financial performance and the adequacy of its allowance for credit losses.
2. Interest Rate Risk: Hawthorn Bancshares is exposed to significant interest rate risk, which is common for financial institutions. Changes in the interest rate environment can adversely affect the company's net interest income, the value of its investment securities, and its overall profitability. The bank's exposure to market risk, particularly from future interest rate changes, is regularly reviewed by its asset/liability committee and board of directors.
3. Economic Downturn and Geographic Concentration Risk: Hawthorn Bancshares operates through 23 banking offices exclusively within Missouri, serving communities such as Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. This geographic concentration means that the company's profitability and financial health are highly dependent on the economic conditions of central and west-central Missouri and the Kansas City Metropolitan Statistical Area (MSA). A significant economic downturn, adverse changes in regional economies, or natural disasters within this specific service area could severely impact loan demand, deposit levels, and asset quality, thereby exacerbating credit risk and affecting the bank's overall business.

The clear emerging threat for Hawthorn Bancshares (HWBK) is the rise of digital-first financial institutions, including neobanks, challenger banks, and specialized online lenders. These entities leverage technology to offer banking services with lower overhead, often providing more competitive rates, reduced fees, and superior mobile-first user experiences, directly challenging traditional brick-and-mortar regional banks like HWBK for deposits, loans, and other financial services.

The addressable markets for Hawthorn Bancshares' main products and services are primarily within the state of Missouri, where the company operates its 23 banking offices. Based on available data, the market sizes for key banking services in Missouri are as follows:

• Deposits: The total deposits in all banks in Missouri were approximately $216.75 billion as of September 30, 2024. For state-chartered banks in Missouri, deposits totaled $182.1 billion as of December 31, 2025.
• Loans: The total loan volume for state-chartered banks in Missouri was $146.9 billion as of December 31, 2025. The Commercial Banking industry in Missouri, which includes consumer, commercial, and industrial loans, had a market size of $29.4 billion in 2026.
• Trust Services: Nondeposit trust companies in Missouri held a combined total of $21.5 billion in trust assets as of December 31, 2022. The broader "Custody, Asset & Securities Services" industry in Missouri, which encompasses trust and fiduciary services, experienced an average annual growth rate of 3.4% from 2020 to 2025.

Here are 3-5 expected drivers of future revenue growth for Hawthorn Bancshares (HWBK) over the next 2-3 years:

1. Growth in the Wealth Management Segment: Hawthorn Bancshares has strategically identified its Wealth Management business as a separate reportable segment starting in 2025 and has invested in additional management resources to build out its products and processes. This focus is expected to drive increased fee income and asset under management growth.
2. Expansion of the Loan Portfolio: The company anticipates continued core growth by expanding existing customer relationships and attracting new customers, leading to an increase in its loan portfolio. This strategy directly contributes to higher interest income.
3. Geographic Market Expansion: Hawthorn Bancshares is actively expanding its physical footprint. A notable example is the approval and planned opening of a new banking center in Overland Park, Kansas, in February 2025, which is expected to extend its reach into new markets and attract new customers and deposits.
4. Strategic Reinvestment in Higher-Earning Assets: The company has repositioned its balance sheet by selling lower-yielding investment securities to reinvest the proceeds into higher-earning assets. This strategic move aims to enhance overall interest income and improve profitability.
5. Improvement in Net Interest Margin (NIM): Hawthorn Bancshares has demonstrated a focus on improving its net interest margin, primarily through optimizing yields on earning assets and managing the cost of deposits. A sustained increase in NIM directly translates to higher net interest income from its banking operations.

Share Repurchases

• Hawthorn Bancshares' Board of Directors approved a new common stock repurchase program in June 2025, authorizing the repurchase of up to $10.0 million in market value of its common stock. This program replaced a prior one.
• During the first nine months of 2025, the company repurchased 90,466 common shares at an average cost of $27.72 per share, totaling approximately $2.5 million.
• As of September 30, 2025, approximately $8.7 million remained available for repurchases under the $10.0 million program.

Share Issuance

• The number of shares outstanding for Hawthorn Bancshares decreased by 1.08% in 2025 and 1.74% in 2024, indicating net repurchases rather than significant new issuances.
• The company's CEO, Brent M. Giles, purchased 700 shares for approximately $18,088 in March 2025.
• Director Jonathan Holtaway increased his stake in the company by purchasing 11,000 shares for a total of $208,725 in April 2024.

Capital Expenditures

• In the last 12 months, Hawthorn Bancshares had capital expenditures of approximately $4.08 million.