HAWTHORN BANCSHARES, INC.HWBK
HAWTHORN BANCSHARES, INC. Segments Disclosure
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.
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 with the first quarter of 2025, the Company identified its Wealth Management Business as a separate reportable segment and now has two reportable segments: the Bank segment and the Wealth Management segment. The Company’s CEO is the CODM for both segments. 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’s remaining operations are not reportable segments, as defined by applicable accounting standards, and are classified as Non-Bank, and primarily represent the parent holding company, other insignificant non-bank subsidiaries and eliminations. For the years ended December 31, 2024 and 2023, the Company had one reportable segment, the Bank, and prior period information has not been recast because it would be impractical to do so.
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 Non-Bank and is reconciled to net income (loss) on a consolidated basis for the years ended December 31, 2025, 2024, and 2023.
| As of and for the year ended December 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Bank | Wealth Management | Non-Bank | Total | |||||||||||||||||||
| Operating revenue | |||||||||||||||||||||||
| Interest income | $ | 97,554 | $ | — | $ | 104 | $ | 97,658 | |||||||||||||||
| Interest expense | 28,384 | — | 3,394 | 31,778 | |||||||||||||||||||
| Net interest income | 69,170 | — | (3,290) | 65,880 | |||||||||||||||||||
| Provision for credit losses | 360 | — | — | 360 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Salaries and employee benefits | 26,271 | 871 | 699 | 27,841 | |||||||||||||||||||
| Occupancy, furniture and equipment expense | 4,304 | 69 | — | 4,373 | |||||||||||||||||||
| Processing, network, and bank card expense | 5,530 | 126 | — | 5,656 | |||||||||||||||||||
| Legal, examination, and professional fees | 1,406 | — | 292 | 1,698 | |||||||||||||||||||
| Depreciation and amortization | 2,328 | — | — | 2,328 | |||||||||||||||||||
| Other | 7,953 | 102 | 896 | 8,951 | |||||||||||||||||||
| Total operating expenses | 47,792 | 1,168 | 1,887 | 50,847 | |||||||||||||||||||
| Other | |||||||||||||||||||||||
| Non-interest income | 10,388 | 2,202 | 1,719 | 14,309 | |||||||||||||||||||
| Investment securities gains, net | 117 | — | — | 117 | |||||||||||||||||||
| Income tax expense (benefit) | 6,024 | — | (726) | 5,298 | |||||||||||||||||||
| Net income (loss) | $ | 25,499 | $ | 1,034 | $ | (2,732) | $ | 23,801 | |||||||||||||||
| Segment assets | $ | 1,881,724 | $ | 13 | $ | 13,113 | $ | 1,894,850 | |||||||||||||||
| As of and for the year ended December 31, 2024 | |||||||||||||||||
| Bank | Non-Bank | Total | |||||||||||||||
| Operating revenue | |||||||||||||||||
| Interest income | $ | 95,234 | $ | 117 | $ | 95,351 | |||||||||||
| Interest expense | 32,859 | 3,899 | 36,758 | ||||||||||||||
| Net interest income | 62,375 | (3,782) | 58,593 | ||||||||||||||
| Provision for credit losses | 1,027 | — | 1,027 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Salaries and employee benefits | 25,238 | 1,340 | 26,578 | ||||||||||||||
| Occupancy, furniture and equipment expense | 4,555 | — | 4,555 | ||||||||||||||
| Processing, network, and bank card expense | 5,530 | — | 5,530 | ||||||||||||||
| Legal, examination, and professional fees | 2,273 | 335 | 2,608 | ||||||||||||||
| Depreciation and amortization | 1,715 | — | 1,715 | ||||||||||||||
| Other | 7,723 | 815 | 8,538 | ||||||||||||||
| Total operating expenses | 47,034 | 2,490 | 49,524 | ||||||||||||||
| Other | |||||||||||||||||
| Non-interest income | 13,382 | 938 | 14,320 | ||||||||||||||
| Investment securities losses, net | (4) | — | (4) | ||||||||||||||
| Income tax expense (benefit) | 5,827 | (1,725) | 4,102 | ||||||||||||||
| Net income (loss) | $ | 21,865 | $ | (3,609) | $ | 18,256 | |||||||||||
| Segment assets | $ | 1,812,168 | $ | 13,017 | $ | 1,825,185 | |||||||||||
| As of and for the year ended December 31, 2023 | |||||||||||||||||
| Bank | Non-Bank | Total | |||||||||||||||
| Operating revenue | |||||||||||||||||
| Interest income | $ | 91,743 | $ | 225 | $ | 91,968 | |||||||||||
| Interest expense | 29,052 | 3,774 | 32,826 | ||||||||||||||
| Net interest income | 62,691 | (3,549) | 59,142 | ||||||||||||||
| Provision for credit losses | 2,340 | — | 2,340 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Salaries and employee benefits | 27,830 | 1,141 | 28,971 | ||||||||||||||
| Occupancy, furniture and equipment expense | 4,040 | 1 | 4,041 | ||||||||||||||
| Processing, network, and bank card expense | 5,151 | — | 5,151 | ||||||||||||||
| Legal, examination, and professional fees | 2,006 | 502 | 2,508 | ||||||||||||||
| Depreciation and amortization | 2,214 | — | 2,214 | ||||||||||||||
| Other | 9,761 | (287) | 9,474 | ||||||||||||||
| Total operating expenses | 51,002 | 1,357 | 52,359 | ||||||||||||||
| Other | |||||||||||||||||
| Non-interest income | 7,416 | 120 | 7,536 | ||||||||||||||
| Investment securities losses, net | (11,500) | (47) | (11,547) | ||||||||||||||
| Income tax expense (benefit) | 698 | (1,222) | (524) | ||||||||||||||
| Net income (loss) | $ | 4,567 | $ | (3,611) | $ | 956 | |||||||||||
| Segment assets | $ | 1,867,686 | $ | 7,664 | $ | 1,875,350 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.