Hawthorn Bancshares Completes Exit of TARP with Repurchase of Warrant

  Hawthorn Bancshares Completes Exit of TARP with Repurchase of Warrant

Business Wire

JEFFERSON CITY, Mo. -- June 13, 2013

The Board of Directors of Hawthorn Bancshares, Inc. (NASDAQ: HWBK) announced
today the repurchase of the warrant issued to the United States Department of
the Treasury in 2008 as part of the Treasury’s Troubled Asset Relief Program’s
(TARP) Capital Purchase Program. The repurchase price was $540,000 and the
warrant provided the Treasury with the right to purchase 287,134 shares of the
Company’s common stock at a price of $15.81 per share. As a result of the
repurchase, Hawthorn Bancshares, Inc. has completely exited the TARP program
and the Treasury has no remaining investment in the Company.

In commenting on the repurchase, Chairman, CEO & President David T. Turner
said, “We are pleased to have the transaction complete. Our ability to repay
the TARP preferred stock and warrant with internal sources reflects our
financial strength and repurchasing the warrant eliminates potential future
shareholder dilution that could have resulted from exercise of the warrant.”

About Hawthorn Bancshares

Hawthorn Bancshares, Inc., a financial-bank holding company headquartered in
Jefferson City, Missouri, is the parent company of Hawthorn Bank of Jefferson
City, Missouri with additional Missouri locations in Lee's Summit,
Springfield, Branson, Independence, Liberty, Raymore, Columbia, Clinton,
Windsor, Collins, Osceola, Warsaw, Belton, Drexel, Harrisonville, California,
and St. Robert.

Statements made in this press release that suggest Hawthorn Bancshares' or
management's intentions, hopes, beliefs, expectations, or predictions of the
future include "forward-looking statements" within the meaning of Section 21E
of the Securities and Exchange Act of 1934, as amended. It is important to
note that actual results could differ materially from those projected in such
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those projected in such
forward-looking statements is contained from time to time in the company's
quarterly and annual reports filed with the Securities and Exchange
Commission.

Contact:

Hawthorn Bancshares
Kathleen Bruegenhemke, 573-761-6100
Senior Vice President, Investor Relations
Fax: 573-761-6272
www.HawthornBancshares.com