Hawthorn Bancshares : Annual Shareholder Meeting

Annual Shareholders Meeting

June 6, 2023

www.HawthornBancshares.com

NASDAQ: HWBK

Officers and Directors

SENIOR

EXECUTIVE

TEAM

BOARD OF DIRECTORS

DAVID TURNER

Director, Executive Chairman

44 years with Hawthorn

Director since 1997

KATHLEEN BRUEGENHEMKE, CPA

Director, Senior Vice President,

Chief Risk Officer and Secretary

31 years with Hawthorn

Director since 2017

FRANK BURKHEAD, CPA

Co-owner, Burkhead & Assoc.

Owner, Burkhead Wealth Management

Director since 2014

JONATHAN HOLTAWAY

President, Ategra Capital Management,

LLC; Managing Member, Ategra GP, LLC

Director since 2019

JACK WETZEL

Co-owner, Meadows Contracting, LLC and Meadows Development Company

Director since 2019

BRENT GILES

Director, CEO

34 years of banking experience

STEVE GUTHRIE, CPA

Senior Vice President Chief Financial Officer 3 years with Hawthorn

PHILIP FREEMAN

Owner, Freeman Properties

JCMO, LLC

Director since 1990

KEVIN RILEY

Former owner, Riley Chevrolet Buick GMC Cadillac; Co-owner, Riley Toyota, Inc.

Director since 1995

CHARLES DUDENHOEFFER

Former Senior Vice President, Trust

Officer (Retired)

Hawthorn Bank

Advisory Director since 1978

GREGG BEXTEN

Director, President

25 years with Hawthorn

JASON SCHWARTZ

Senior Vice President Chief Credit Officer 23 years with Hawthorn

SHAWNA HETTINGER

President, Streetwise, Inc.

Director since 2022

JOHN STATES

Member/Owner, Little Dixie

Construction

Director since 2022

DR. GUS WETZEL, III

Physician/Surgeon

Advisory Director since 1974

2

Forward-Looking Statements

FORWARD-LOOKINGSTATEMENTS. This presentation and oral statements made during this meeting contain forward looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe ," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "strive," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward looking statements, including, but not limited to, the following: risks related to general business and economic conditions and any regulatory responses to such conditions; our ability to effectively execute our growth strategy and manage our growth; the geographic concentration of our markets; fluctuation of the fair value of our investment securities due to factors outside our control; our ability to successfully manage our credit risk and the sufficiency of our allowance; our ability to attract, hire and retain qualified management personnel; interest rate fluctuations; credit and market risks relating to increasing inflation; our ability to raise or maintain sufficient capital; our ability to maintain sufficient liquidity, primarily through deposits, in light of recent events in the banking industry; increases in non-performing assets in our loan portfolios and adverse economic conditions may necessitate increases to our provisions for credit losses; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework in mitigating risks and losses; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; system failures and interruptions, cyberattacks and security breaches; employee error, fraudulent activity by employees or clients and inaccurate or incomplete information about our clients and counterparties; our ability to maintain our reputation; costs and effects of litigation, investigations or similar matters; risk exposure from transactions with financial counterparties; severe weather, acts of god, acts of war or terrorism; risks relating to the COVID 19 pandemic; compliance with governmental and regulatory requirements; changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters; compliance with requirements associated with being a public company; and level of coverage of our business by securities analysts. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

NON-GAAPFINANCIAL INFORMATION. This presentation contains certain non-GAAP measures. These non-GAAP measures, as calculated by Hawthorn, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP.

MARKET AND INDUSTRY DATA. This presentation may reference certain market, industry and demographic data, forecasts and other statistical information. We obtain this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information may also be based on our good faith estimates, which may be derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change.

3

Hawthorn Bancshares, Inc.

Hawthorn Real	Union State	Exchange
National
Estate, LLC	Bancshares, Inc.
Statutory Trust I

Exchange

National

Statutory Trust II

Jefferson City

IHC, LLC

HB Realty, LLC

Hawthorn Risk

Management,

Inc.

4

History of Asset Growth

1997				2003
			Acquired:
Acquired:
		Missouri State Bank (Springfield) $32MM Assets
Union State Bank & Trust
					2007
$144MM Assets		2000
			Acquired:					Rebranded all locations
		Osage Valley Bank $55MM Assets				2005
				Acquired:
	Citizens Bank of Calhoun $70MM Assets
		Bank 10	$171MM Assets
	City National Savings Bank $91MM Assets
						2004		2007
							Opened:
						Opened:
							Columbia, MO
						Branson, MO
						Lee's Summit, MO

2009

Closed:

$ in billionsTipton

Branch

2012

Opened:

Liberty, MO (LPO)

Columbia, MO (LPO)

2015

Closed:

Raymore

Branch

2019

Expanded Columbia LPO to

Full-Service Bank

2020

Established:

Mortgage Group

2019

Opened St. Louis LPO

2017 2018 2019 Closed: Closed: Sold: Collins Windsor Branson Branch Branch Branch

5