Exchange Bank changes name to Hawthorn, opens Columbia branch

Columbia’s newest banking center is a branch of one of the state’s oldest banks, but you wouldn’t know that by reading the sign that just went up near the corner of Nifong and Forum.

Exchange Bank, which was founded in Jefferson City in 1865, is changing its name to Hawthorn Bank, and the new branch at 1110 Club Village Drive in Columbia will be the first to get the new name.

“It’s a natural progression for us to come to Columbia,” said Matt Williams, head of the local bank branch that began operations June 25.

Williams previously was vice president and chief lending officer at Boone National Savings and Loan Association, which merged with Commerce Bank. He brings with him several seasoned banking specialists with whom he worked during his tenure at Boone National S&L.

Exchange Bank is part of the Lee’s Summit-based Exchange National Bancshares, Inc., a holding company for a group of four banks with 26 locations throughout the state.

Exchange Bank plans to change the names of all of its locations to Hawthorn Bank by the end of the year.

“As we’ve grown, it made sense to combine the banks under one name,” Williams said. “This will make banking more convenient for our customers.”

Williams explained that the company chose the name Hawthorn because “it is the Missouri state flower and it reflects our heritage. We’re going to do business the way we’ve always done it: local decision-making with very quick response and a very common-sense approach.”

Hawthorn is the 21st banking institution to open in the Columbia area. John Howe, a professor of finance who holds the Missouri Bankers Association chair at the University of Missouri, said Hawthorn will find it challenging to gain a foothold in the market.

“The Columbia banking scene strikes me as being a very competitive market already,” Howe said. However, Columbia continues to grow at a reasonable pace, and the local economy is stable, he added.

Joe Stieven, president and registered investment adviser of Stieven Capital Advisors in St. Louis, said that banking is one of the oldest industries in the world and constantly evolves based on consumer need.

“As customers’ needs change, the financial industry changes to meet those needs. Most banks today are operating differently than they did 20 years ago, and 10 years from now they’ll be operating differently than today. The well-run institutions evolve to meet their customers’ needs. For example, 10 years ago no one did Internet banking. Nowadays many consumers demand that service from their financial institution.”

When asked about current banking challenges, Hawthorn Bank’s Matt Williams said the issues of fraud and identity theft are real problems and are industry-wide.

“Everything we do is very encrypted,” said Williams about Hawthorn Bank’s serious approach to security issues. “A great deal of time and effort is required to prevent things like online hacking and mortgage fraud from occurring in the industry. We get to know our customers, and we’re very passionate about our services. Handling our customers’ needs is the key to our existence.”