Segment Information

3 Months Ended

Mar. 31, 2025

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, 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 the three months March 31, 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, during the three months ended March 31, 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. The Bank segment is composed of operations from 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. The Company's existing trust services will also be included in the Wealth Management segment.

The table below highlights 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 months ended March 31, 2025 and 2024, respectively was as follows:

	Three Months Ended March 31, 2025
(dollars in thousands)	Hawthorn Bank		Wealth Management		Non-Bank		Total
Operating revenue
Interest income	$	23,432	$	—	$	26	$	23,458
Interest expense	7,312		—		852		8,164
Net interest income	$	16,120	$	—	$	(826)	$	15,294
Provision for credit losses	(340)		—		—		(340)
Operating expenses
Salaries and employee benefits	$	6,397	$	156	$	359	$	6,912
Occupancy, furniture and equipment expense	1,178		15		—		1,193
Processing, network, and bank card expense	1,383		18		—		1,401
Legal, examination, and professional fees	396		—		97		493
Depreciation	535		—		—		535
Other	1,739		15		211		1,965
Total operating expenses	$	11,628	$	204	$	667	$	12,499
Other
Non-interest income	$	2,591	$	512	$	360	$	3,463
Investment securities losses, net	(2)		—		—		(2)
Income taxes	1,450		—		(237)		1,213
Net income	$	5,971	$	308	$	(896)	$	5,383
Segment assets	$	1,871,281	$	4	$	12,138	$	1,883,423

	Three Months Ended March 31, 2024
(dollars in thousands)	Hawthorn Bank		Non-Bank		Total
Operating revenue
Interest income	$	24,022	$	30	$	24,052
Interest expense	8,315		989		9,304
Net interest income	$	15,707	$	(959)	$	14,748
Provision for credit losses	(230)		—		(230)
Operating expenses
Salaries and employee benefits	$	6,392	$	338	$	6,730
Occupancy, furniture and equipment expense	1,106		—		1,106
Processing, network, and bank card expense	920		450		1,370
Legal, examination, and professional fees	623		200		823
Depreciation	463		—		463
Other	2,430		(347)		2,083
Total operating expenses	$	11,934	$	641	$	12,575
Other
Non-interest income	$	2,733	$	286	$	3,019
Investment securities losses, net	—		—		—
Income taxes	1,242		(276)		966
Net income	$	5,494	$	(1,038)	$	4,456
Segment assets	$	1,825,851	$	57,572	$	1,883,423