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Exhibit 99.1 Hawthorn Bancshares Reports Results for Three and Nine Months Ended September 30 , 2021 Third Quarter 2021 Results • Net income of $ 5.8 million , or $ 0.88 per diluted share • Net interest margin , fully taxable equivalent ( " FTE " ) of 3.78 % • Return on average assets and equity of 1.33 % and 16.49 % , respectively • Loans decreased $ 11 million , or 0.9 % , compared to the linked quarter • Deposits increased $ 30 million , or 2.2 % , compared to the linked quarter - October 27 , 2021 Jefferson City , MO Hawthorn Bancshares Inc. ( NASDAQ : HWBK ) , ( the " Company " or " HWBK " ) reported net income of $ 5.8 million for the third quarter 2021 , an increase of $ 0.9 million compared to the linked second quarter 2021 ( " linked quarter " ) and an increase of $ 0.8 million from the third quarter 2020 ( the " prior year quarter " ) . Earnings per diluted share ( " EPS " ) was $ 0.88 for the third quarter 2021 compared to $ 0.74 for both the linked quarter and prior year quarter . Net income and EPS for the third quarter 2021 increased from the linked quarter primarily due to higher net interest income driven by higher Small Business Payroll Protection Program ( " PPP " ) loan fee income , partially offset by a decrease in gain on sale of real estate mortgages , described in more detail below . Chairman David T. Turner commented , " Hawthorn Bank continues to be well - positioned during this economic recovery , and once again delivered strong financial performance in the third quarter . Contributing to this strong overall financial performance was the acceleration of PPP loan fee income as a result of our borrowers electing to pursue loan forgiveness in accordance with the CARES Act . This acceleration , while contributing almost $ 1.6 million in higher earnings as compared to the linked quarter , did result in the forgiveness of $ 24 million in loans during the quarter . Excluding the impact of PPP loans on our portfolio , we achieved $ 12.6 million or 1.0 % loan growth in the third quarter as compared to the linked quarter . At the end of the quarter , we had $ 1.8 million in PPP loan fees which will be recognized in future periods as the remaining $ 26 million in PPP loans are forgiven . Our overall asset quality is improving . We continue to closely monitor our portfolio of non - performing loans and have seen some signs of strengthening within certain credits , and no further degradation so we remain very optimistic . Our mortgage lending team continues to perform well . While we did see a reduction in production of 20 % in the third quarter versus the linked quarter , we feel this result was driven more by housing market - related factors and the current mortgage rate environment as opposed to any actions we should have taken differently . " " I continue to be very proud of our team and how we continue to navigate through these unprecedented times ; always thinking of how to better address the needs of our customers . " Highlights • Earnings - Net income of $ 5.8 million for the third quarter 2021 increased $ 0.9 million , or 18 % , from the linked quarter , and increased $ 0.8 million , or 17 % , from the prior year