v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company determines its operating segments based on how the chief operating decision maker (“CODM”) views and analyzes each segment’s operations, performance and allocates resources. The Chief Executive Officer (“CEO”) is the CODM. The CODM reviews the actual net income compared to budgeted net income on a monthly basis to evaluate segment performance, make decisions, and determine where to deploy capital. This analysis is also used for benchmarking performance against the Company's peers.
The Company previously reported under one segment. During 2025, the Company identified its Wealth Management business as a strategic opportunity and hired additional management resources to provide the structure for products and processes for this business. As a result, beginning in the first quarter of 2025, the Company identified its Wealth Management business as its own separate reporting segment and now reports two aggregated reporting segments, consisting of the Bank and its Wealth Management business, and the CEO is the CODM for both segments.
The Bank segment is composed of operations providing a broad range of banking products and services located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. The Wealth Management segment includes a broad range of financial and investment planning services for individuals and business owners as well as the Company's existing trust services.
The tables below highlight the Company’s revenues, expenses and net income (loss) for each reportable segment and is reconciled to net income (loss) on a consolidated basis for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30, 2026
(dollars in thousands)Hawthorn BankWealth ManagementNon-BankTotal
Operating revenue
Interest income$24,329 $— $23 $24,352 
Interest expense6,317 — 777 7,094 
Net interest income18,012 — (754)17,258 
Provision for credit losses238 — — 238 
Operating expenses
Salaries and employee benefits6,917 557 119 7,593 
Occupancy, furniture and equipment expense777 15 40 832 
Processing, network, and bank card expense1,379 40 — 1,419 
Legal, examination, and professional fees643 — 301 944 
Depreciation 818 — — 818 
Other1,788 47 306 2,141 
Total operating expenses12,322 659 766 13,747 
Other
Non-interest income2,899 654 1,824 5,377 
Investment securities gains, net280 — — 280 
Income taxes1,565 — 39 1,604 
Net income (loss)$7,066 $(5)$265 $7,326 
Six Months Ended June 30, 2026
(dollars in thousands)Hawthorn BankWealth ManagementNon-BankTotal
Operating revenue
Interest income$48,697 $— $49 $48,746 
Interest expense12,834 — 1,552 14,386 
Net interest income35,863 — (1,503)34,360 
Provision for credit losses311 — — 311 
Operating expenses
Salaries and employee benefits13,304 741 362 14,407 
Occupancy, furniture and equipment expense2,120 35 (1)2,154 
Processing, network, and bank card expense2,745 92 — 2,837 
Legal, examination, and professional fees1,291 — 455 1,746 
Depreciation 1,256 1 — 1,257 
Other3,760 77 511 4,348 
Total operating expenses24,476 946 1,327 26,749 
Other
Non-interest income6,285 1,270 922 8,477 
Investment securities gains, net285 — — 285 
Income taxes3,394 — (401)2,993 
Net income (loss)$14,252 $324 $(1,507)$13,069 
Segment assets$1,759,823 $18 $13,199 $1,773,040 
Three Months Ended June 30, 2025
(dollars in thousands)Hawthorn BankWealth ManagementNon-BankTotal
Operating revenue
Interest income$23,886 $— $25 $23,911 
Interest expense6,914 — 855 7,769 
Net interest income16,972 — (830)16,142 
Release of credit losses(51)— — (51)
Operating expenses
Salaries and employee benefits6,089 333 281 6,703 
Occupancy, furniture and equipment expense1,382 23 1 1,405 
Processing, network, and bank card expense1,796 18 (371)1,443 
Legal, examination, and professional fees578 — (150)428 
Depreciation215 — — 215 
Other1,196 31 848 2,075 
Total operating expenses11,256 405 609 12,269 
Other
Non-interest income2,484 542 519 3,545 
Investment securities gains (losses), net— — (1)(1)
Income taxes1,559 — (192)1,367 
Net income (loss)$6,692 $137 $(729)$6,101 
Six Months Ended June 30, 2025
(dollars in thousands)Hawthorn BankWealth ManagementNon-BankTotal
Operating revenue
Interest income$47,313 $— $56 $47,369 
Interest expense14,224 — 1,709 15,933 
Net interest income33,089 — (1,653)31,436 
Release of credit losses(391)— — (391)
Operating expenses
Salaries and employee benefits12,310 665 640 13,615 
Occupancy, furniture and equipment expense2,170 38 1 2,209 
Processing, network, and bank card expense2,808 36 — 2,844 
Legal, examination, and professional fees738 — 183 921 
Depreciation1,140 — — 1,140 
Other3,540 46 453 4,039 
Total operating expenses22,706 785 1,277 24,768 
Other
Non-interest income5,072 1,054 882 7,008 
Investment securities gains (losses), net(2)— (1)(3)
Income taxes3,011 — (431)2,580 
Net income (loss)$12,833 $269 $(1,618)$11,484 
Segment assets$1,871,265 $20 $6,132 $1,877,417