Hawthorn Bancshares Inc 2024年度报告

ANNUAL REPORT TO SHAREHOLDERS HAWTHORN BANCSHARES, INC.Jefferson City, Missouri March 17, 2025 Dear Shareholders: In many ways, 2024 was a foundational year. Several key changes were implemented, and we progressed our strategic initiatives,setting the stage for Hawthorn Bancshares, Inc. and Hawthorn Bank to grow in 2025. One of our most visible changes was the brand refresh that took place in October. The new look is rooted in our history, with a nodto the future. The arch in the ‘H’ of the new logo serves as an abstract horizon, much like looking across an open field in theheartland and seeing opportunity in what lies ahead. We added a new tagline as well, “Connecting you to what’s possible.” As acommunity bank, we are the connection point for families, businesses and organizations — whether it’s financing a first home,getting a business off the ground, or finding the needed resources for schools and community groups — we are connecting them tosomething bigger, and making things possible. We celebrated the opening of our Shoal Creek location in July. This new location will serve as a prototype for future banking centerlocations. In November, we officially expanded into Johnson County, Kansas with office space to grow our wealth managementportfolio in this region, aiming to mirror the success our trust and investment teams have in mid- and southern Missouri. We added talented individuals and leadership roles to nearly every area in 2024, and I am excited to see how our team continues toadvance. I’m appreciative of our long-time associates who welcomed change with optimism too. Due to unfortunate marketconditions and the absence of rate cuts, in June we made the difficult decision to downsize the mortgage team. Our Project Management Office also ramped up last year, giving us the ability to move projects efficiently. We have made significantstrides on our product consolidation process and anticipate completion in 2025. All of this leads to my focus for 2025: As a community bank competing against big banks, credit unions, and fintech companies, wecannot remain stagnant. The world is changing fast, which means our clients’ needs are changing too. We need to stay nimble andcontinue to grow to remain a valuable and easy choice for current and future clients. We are in a position where we have a lot of potential to grow our business deposits and loans. To encourage this growth, we areputting into place the right products, the right promotions, and the right people using a process that works, with several prospectsall laddering-up to meet our priorities. Our leadership team has been working hard to make sure we have all these key elements inplace. Thank you to all our associates for their dedication and effort to move us towards our goals, while keeping our mission as acommunity bank at the heart of what we do each day. Thank you for your investment in our company. We appreciate your trust and support. Sincerely, Brent M. Giles,Chief Executive Officer A WORD CONCERNING FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements with respect to the financial condition, results of operations, plans,objectives, strategy, future performance and business of the Company, Hawthorn Bancshares, Inc. (the “Company”), and itssubsidiaries, including, without limitation: •statements that are not historical in nature, and•statements preceded by, followed by or that include the wordsbelieves,expects, may, will, should, could, anticipates, estimates,intendsor similar expressions. Forward-looking statements are not guarantees of future performance or results. They involve risks, uncertainties and assumptions.Actual results may differ materially from those contemplated by the forward-looking statements due to, among others, the followingfactors: •competitive pressures among financial services companies may increase significantly,•changes in the interest rate environment may reduce interest margins,•general economic conditions, either nationally or in Missouri, may be less favorable than expected and may adversely affectthe quality of our loans and other assets,•increases in non-performing assets in the Company’s loan portfolios and adverse economic conditions may necessitateincreases to our provisions for credit losses,•costs or difficulties related to any integration of any business of the Company and its acquisition targets may be greaterthan expected,•legislative, regulatory or tax law changes may adversely affect the business in which the Company and its subsidiaries areengaged,•credit and market risks relating to increasing inflation,•economic or other disruptions caused by acts of terrorism, war or other conflicts, including the Russia-Ukraine conflict,and the Israel-Hamas conflict, natural disasters, such as hurricanes, wild fires, freezes, flooding and other man-madedisasters, such as oil spills or power outages, health emergencies, epidemics or pandemics, climate changes or other