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Pending Litigation
6 Months Ended
Jun. 30, 2011
Pending Litigation [Abstract]  
Pending Litigation
(14) Pending Litigation
     Our Company and its subsidiaries are defendants in various legal actions incidental to our Company’s past and current business activities. At June 30, 2011 and December 31, 2010, our Company’s consolidated balance sheets included liabilities for these legal actions of $265,000 and $275,000, respectively. Based on our Company’s analysis, and considering the inherent uncertainties associated with litigation, we do not believe that it is reasonably possible that these legal actions will materially adversely affect our Company’s consolidated financial statements or results of operations in the near term.
     On November 18, 2010, a suit was filed against Hawthorn Bank in the Circuit Court of Jackson County for the Eastern Division of Missouri by a customer alleging that the fees associated with the Bank’s automated overdraft program in connection with its debit card and ATM cards constitute unlawful interest in violation of Missouri’s usury laws. The suit seeks class-action status for Bank customers who have paid overdraft fees on their checking accounts. The Bank has filed for a motion to dismiss the suit. At this early stage of the litigation, it is not possible for management of the Bank to determine the probability of a material adverse outcome or reasonably estimate the amount of any potential loss.
     On December 17, 2009, a suit was filed against Hawthorn Bank in Circuit Court of Jackson County for the Eastern Division of Missouri state court by a customer alleging that the Bank had not followed through on its commitment to fund a loan request. A jury found in favor of the customer and as of June 30, 2011 our Company was carrying a liability of $195,000 representing the balance of its estimated obligation. Our Company is currently in the early stages of the appeals process and the probable outcome is presently not determinable.
     On May 10, 2011, a suit was filed against Hawthorn Bank in the Circuit Court of Cole County by a customer alleging that the Bank had not properly disclosed information in a sale of foreclosed property. Our Company is carrying a liability of $70,000 representing the balance of its estimated obligation.