HAWTHORN FAMILY DENTAL, P.C.

profit-sharing contributions are allocated to a participant’s account based on that participant’s compensation compared to the total compensation of all eligible participants. The Company matches the participant’s salary deferral into the plan dollar for dollar up to 3 percent of the participant’s annual salary. All contributions are made conditioned upon their deductibility for federal income tax purposes. Participants have the option to make voluntary contributions to the Plan up to the annual limit set by the Internal Revenue Service (“IRS”). Participant Investment Account Options Investment account options available include various mutual funds and common stock of the Company. Each participant has the option of directing his/her contributions into any of the separate investment account

ticipants terminating employment prior to retirement are entitled to receive that portion of their account that is vested. In the event of death, the participant’s account becomes fully vested and the balance is paid to the designated beneficiary. Distributions under the Plan are payable in a lump sum or through installments. (2) Summary of Significant Accounting Policies Basis of Accounting The accompanying financial statements are prepared on the accrual basis of accounting except for benefits, which are recorded upon distribution, and present the net assets available for plan benefits and changes in those net assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to

r an annual increase in percentage deferral and is ultimately capped at 3 percent of eligible compensation. Effective January 1, 2025, the Plan was amended to increase the initial automatic enrollment to 3 percent with a cap of 7 percent of eligible compensation. Participant Accounts Each participant’s account is credited with the participant’s contribution, the Company’s contribution, plan earnings (losses) and forfeitures of terminated participants’ nonvested accounts. Allocations are based on participant earnings. The benefits to which a participant is entitled is the benefit that can be provided from the participant’s vested account. 5 Hawthorn Bancshares, Inc. Profit Sharing 401(k) Plan Notes to Financial Statements Years Ended December 31, 2025 and 2024 Vesting Participant contributi

s the Plan’s gains and losses on investments bought and sold as well as held during the year. Payment of Benefits Benefits payments are recorded to participants upon distribution. Administrative Expenses The administrative expenses of the Plan are paid by the Company. (3) Fair Value of Plan Assets FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurements , provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair v