Manhattan, KS, July 24, 2025 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. ("Landmark"; Nasdaq: LARK) reported diluted earnings per share of $0.75 for the second quarter of 2025, compared to $0.81 per share in the first quarter of 2025 and $0.52 per share in the same quarter of the prior year. Net earnings for the second quarter totaled $4.4 million, compared to $4.7 million in the prior quarter and $3.0 million in the second quarter of 2024. For the three months ended June 30, 2025, the return on average assets was 1.11%, the return on average equity was 12.25% and the efficiency ratio(1) was 62.8%.
For the first six months of 2025, diluted earnings per share totaled $1.56 compared to $1.01 during the same period in 2024. Net earnings for the first six months of 2025 totaled $9.1 million, compared to $5.8 million in the first six months of 2024. For the six months ended June 30, 2025, the return on average assets was 1.16%, the return on average equity was 12.96%, and the efficiency ratio(1) was 63.4%.
Second Quarter 2025 Performance Highlights
| ? | Total gross loans increased in the second quarter 2025 by $42.9 million, an annualized increase of 16.0% over the prior quarter. | |
| ? | The net interest margin improved 7 basis points to 3.83% compared to 3.76% in prior quarter and 3.25% in the second quarter of the prior year. | |
| ? | Net interest income increased $564,000, or 4.3%, in the second quarter of 2025, and increased $2.7 million, or 24.7%, from the same quarter of the prior year. | |
| ? | Deposits increased $23.4 million, or 1.9%, from the same quarter of the prior year, and declined $61.9 million from the prior quarter. | |
| ? | Total assets increased $46.7 million, or 11.9% annualized, compared to the prior quarter. | |
| ? | Credit quality remained stable with net charge-offs totaling $40,000 in the second quarter. | |
| ? | Stockholders' equity increased $5.7 million, and the ratio of equity to assets increased to 9.13% in the second quarter. | |
In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, "I am pleased to report continued strong net earnings this quarter driven by growth in loans and net interest income. Loan demand remained strong in the second quarter of 2025, especially for commercial, commercial real estate and residential mortgage loans as total gross loans increased by $42.9 million or 16.0% annualized. Despite a decrease in total deposits in the second quarter, we have sustained year-over-year growth of $23.4 million, or 1.9%. The strong growth in our loan portfolio led to net interest income growth of 24.7% over the previous year and continued expansion in our net interest margin, which increased to 3.83%. Non-interest income increased by 8.0% this quarter compared to the prior quarter and expenses were well controlled. Credit quality remained solid overall with minimal net charge-offs. A provision for credit losses of $1.0 million was recorded this quarter to reflect the growth in loans and higher reserves against individually evaluated loans on non-accrual. Our strong performance is a direct result of the daily commitment and effort our associates put into making Landmark the top choice for both customers and investors."
Landmark's Board of Directors declared a cash dividend of $0.21 per share, to be paid August 27, 2025, to common stockholders of record as of the close of business on August 13, 2025.
Management will host a conference call to discuss the Company's financial results at 10:00 a.m. (Central time) on Friday, July 25, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 703723. A replay of the call will be available through August 1, 2025, by dialing (855) 762-8306 and using access code 160217.
(1) Non-GAAP financial measure. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation.
Net Interest Income
Net interest income in the second quarter of 2025 totaled $13.7 million representing an increase of $564,000, or 4.3%, compared to the previous quarter and an increase of $2.7 million, or 24.7%, in the same quarter of the prior year. The increase in net interest income this quarter was driven by higher interest income on loans and lower interest expense on deposits. The net interest margin increased to 3.83% during the second quarter from 3.76% during the prior quarter and 3.25% in the second quarter of the prior year. Compared to the previous quarter, interest income on loans increased $791,000 to $17.2 million, due to higher average balances combined with higher yields on loans. Average loan balances increased $33.3 million, while the average tax-equivalent yield on the loan portfolio increased 3 basis points to 6.37%. Interest on investment securities declined slightly due to lower balances, partially offset by higher earning rates. Compared to the first quarter of 2025, interest on deposits decreased $92,000, or 1.8%, due to lower rates and balances. Interest on other borrowed funds increased by $284,000, due to higher average balances. The average rate on interest-bearing deposits decreased 3 basis points to 2.14% while the average rate on other borrowed funds decreased 11 basis points to 4.98% in the second quarter of 2025.
Non-Interest Income
Non-interest income totaled $3.6 million for the second quarter of 2025, an increase of $268,000 from the previous quarter. The increase in non-interest income during the second quarter of 2025 was primarily due to increases of $178,000 in gains on sales of loans and $88,000 in fees and service charges.
Non-Interest Expense
During the second quarter of 2025, non-interest expense totaled $11.0 million, an increase of $200,000, or 1.9%, compared to the prior quarter. The increase in non-interest expense was primarily due to increases of $233,000 in data processing expense and $101,000 in other non-interest expense. The increase in data processing expense resulted from the implementation of additional services added and account growth, while the increase in other non-interest expense was primarily due to higher losses at our captive insurance subsidiary. Partially offsetting those increases was a decline in professional fees related to lower consulting and legal expenses during the quarter.
Income Tax Expense
Landmark recorded income tax expense of $944,000 in the second quarter of 2025 compared to $1.0 million in the first quarter of 2025. The effective tax rate was 17.7% in the second quarter of 2025 compared to 17.8% in the first quarter of 2025.
Balance Sheet Highlights
As of June 30, 2025, gross loans totaled $1.1 billion, an increase of $42.9 million, or 16.0% annualized since March 31, 2025. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $21.5 million), commercial (growth of $13.4 million) and commercial real estate (growth of $10.9 million). Investment securities available-for-sale decreased $3.6 million during the second quarter of 2025 mainly due to maturities. Pre-tax unrealized net losses on the investment securities portfolio decreased from $17.1 million at March 31, 2025, to $13.9 million at June 30, 2025, mainly due to lower market rates for these securities at June 30, 2025.
Period end deposit balances decreased $61.9 million to $1.3 billion at June 30, 2025. The decline in deposits was driven by decreases in money market and checking accounts (decrease of $50.5 million), non-interest-bearing demand deposits (decrease of $16.5 million) and savings (decrease of $1.1 million), partially offset by an increase in certificates of deposit (increase of $6.2 million). The decrease in deposits was primarily driven by a decline in brokered deposits as well as lower core deposit balances at June 30, 2025. Total borrowings increased $105.9 million during the second quarter 2025 to fund asset growth and to offset lower deposit balances. At June 30, 2025, the loan to deposits ratio was 86.6% compared to 79.5% in the prior quarter.
Stockholders' equity increased to $148.4 million (book value of $25.66 per share) as of June 30, 2025, from $142.7 million (book value of $24.69 per share) as of March 31, 2025. The increase in stockholders' equity was due mainly to a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities) along with net earnings during the quarter. The ratio of equity to total assets increased to 9.13% on June 30, 2025, from 9.04% on March 31, 2025.
The allowance for credit losses totaled $13.8 million, or 1.23% of total gross loans on June 30, 2025, compared to $12.8 million, or 1.19% of total gross loans on March 31, 2025. Net loan charge-offs totaled $40,000 in the second quarter of 2025, compared to $23,000 during the first quarter of 2025 and net recoveries of $52,000 in the second quarter of the prior year. A provision for credit losses on loans of $1.0 million was recorded in the second quarter of 2025 compared to no provision in the first quarter of 2025.
Non-performing loans totaled $17.0 million, or 1.52% of gross loans, at June 30, 2025, compared to $13.3 million, or 1.24% of gross loans, at March 31, 2025. Loans 30-89 days delinquent totaled $4.3 million, or 0.39% of gross loans, as of June 30, 2025, compared to $10.0 million, or 0.93% of gross loans, as of March 31, 2025.
About Landmark
Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol "LARK." Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.
Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000
Special Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies and financial markets, including the effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto; (ii) effects on the U.S. economy resulting from the threat or implementation of new, or changes to, existing policies, regulations, regulatory and other governmental agencies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, DEI and ESG initiatives, consumer protection, foreign policy and tax regulations; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and "fintech" companies; (v) timely development and acceptance of new products and services; (vi) rapid and expensive technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (x) the loss of key executives or employees; (xi) changes in consumer spending; (xii) integration of acquired businesses; (xiii) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (xiv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xv) the economic impact of past and any future terrorist attacks, acts of war, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvi) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xvii) fluctuations in the value of securities held in our securities portfolio; (xviii) concentrations within our loan portfolio and large loans to certain borrowers (including commercial real estate loans); (xix) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xx) the level of non-performing assets on our balance sheets; (xxi) the ability to raise additional capital; (xxii) the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors' information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) declines in real estate values; (xxiv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxv) the Company's success at managing and responding to the risks involved in the foregoing items; and (xxvi) any other risks described in the "Risk Factors" sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark's financial results, is included in our filings with the Securities and Exchange Commission.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 25,038 | $ | 21,881 | $ | 20,275 | $ | 21,211 | $ | 23,889 | ||||||||||
| Interest-bearing deposits at other banks | 3,463 | 3,973 | 4,110 | 4,363 | 4,881 | |||||||||||||||
| Investment securities available-for-sale, at fair value: | ||||||||||||||||||||
| U.S. treasury securities | 51,624 | 58,424 | 64,458 | 83,753 | 89,325 | |||||||||||||||
| Municipal obligations, tax exempt | 100,802 | 101,812 | 107,128 | 112,126 | 114,047 | |||||||||||||||
| Municipal obligations, taxable | 75,037 | 70,614 | 71,715 | 75,129 | 74,588 | |||||||||||||||
| Agency mortgage-backed securities | 124,979 | 125,142 | 129,211 | 140,004 | 142,499 | |||||||||||||||
| Total investment securities available-for-sale | 352,442 | 355,992 | 372,512 | 411,012 | 420,459 | |||||||||||||||
| Investment securities held-to-maturity | 3,730 | 3,701 | 3,672 | 3,643 | 3,613 | |||||||||||||||
| Bank stocks, at cost | 10,946 | 6,225 | 6,618 | 7,894 | 9,647 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| One-to-four family residential real estate | 377,133 | 355,632 | 352,209 | 344,380 | 332,090 | |||||||||||||||
| Construction and land | 26,373 | 28,645 | 25,328 | 23,454 | 30,480 | |||||||||||||||
| Commercial real estate | 370,455 | 359,579 | 345,159 | 324,016 | 318,850 | |||||||||||||||
| Commercial | 204,303 | 190,881 | 192,325 | 181,652 | 178,876 | |||||||||||||||
| Agriculture | 100,348 | 101,808 | 100,562 | 91,986 | 84,523 | |||||||||||||||
| Municipal | 6,938 | 7,082 | 7,091 | 7,098 | 6,556 | |||||||||||||||
| Consumer | 32,234 | 31,297 | 29,679 | 29,263 | 29,200 | |||||||||||||||
| Total gross loans | 1,117,784 | 1,074,924 | 1,052,353 | 1,001,849 | 980,575 | |||||||||||||||
| Net deferred loan (fees) costs and loans in process | (615 | ) | (426 | ) | (307 | ) | (63 | ) | (583 | ) | ||||||||||
| Allowance for credit losses | (13,762 | ) | (12,802 | ) | (12,825 | ) | (11,544 | ) | (10,903 | ) | ||||||||||
| Loans, net | 1,103,407 | 1,061,696 | 1,039,221 | 990,242 | 969,089 | |||||||||||||||
| Loans held for sale, at fair value | 4,773 | 2,997 | 3,420 | 3,250 | 2,513 | |||||||||||||||
| Bank owned life insurance | 39,607 | 39,329 | 39,056 | 39,176 | 38,826 | |||||||||||||||
| Premises and equipment, net | 19,654 | 19,886 | 20,220 | 20,976 | 20,986 | |||||||||||||||
| Goodwill | 32,377 | 32,377 | 32,377 | 32,377 | 32,377 | |||||||||||||||
| Other intangible assets, net | 2,275 | 2,426 | 2,578 | 2,729 | 2,900 | |||||||||||||||
| Mortgage servicing rights | 3,082 | 3,045 | 3,061 | 3,041 | 2,997 | |||||||||||||||
| Real estate owned, net | 167 | 167 | 167 | 428 | 428 | |||||||||||||||
| Other assets | 23,904 | 24,894 | 26,855 | 23,309 | 28,149 | |||||||||||||||
| Total assets | $ | 1,624,865 | $ | 1,578,589 | $ | 1,574,142 | $ | 1,563,651 | $ | 1,560,754 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing demand | 351,993 | 368,480 | 351,595 | 360,188 | 360,631 | |||||||||||||||
| Money market and checking | 562,919 | 613,459 | 636,963 | 565,629 | 546,385 | |||||||||||||||
| Savings | 148,092 | 149,223 | 145,514 | 145,825 | 150,996 | |||||||||||||||
| Certificates of deposit | 210,897 | 204,660 | 194,694 | 203,860 | 192,470 | |||||||||||||||
| Total deposits | 1,273,901 | 1,335,822 | 1,328,766 | 1,275,502 | 1,250,482 | |||||||||||||||
| FHLB and other borrowings | 155,110 | 48,767 | 53,046 | 92,050 | 131,330 | |||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||
| Repurchase agreements | 5,825 | 6,256 | 13,808 | 9,528 | 8,745 | |||||||||||||||
| Accrued interest and other liabilities | 20,002 | 23,442 | 20,656 | 25,229 | 20,292 | |||||||||||||||
| Total liabilities | 1,476,489 | 1,435,938 | 1,437,927 | 1,423,960 | 1,432,500 | |||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock | 58 | 58 | 58 | 55 | 55 | |||||||||||||||
| Additional paid-in capital | 95,266 | 95,148 | 95,051 | 89,532 | 89,469 | |||||||||||||||
| Retained earnings | 63,612 | 60,422 | 56,934 | 60,549 | 57,774 | |||||||||||||||
| Treasury stock, at cost | - | - | - | (396 | ) | (330 | ) | |||||||||||||
| Accumulated other comprehensive loss | (10,560 | ) | (12,977 | ) | (15,828 | ) | (10,049 | ) | (18,714 | ) | ||||||||||
| Total stockholders' equity | 148,376 | 142,651 | 136,215 | 139,691 | 128,254 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,624,865 | $ | 1,578,589 | $ | 1,574,142 | $ | 1,563,651 | $ | 1,560,754 | ||||||||||
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)
| Three months ended, | Six months ended, | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 17,186 | $ | 16,395 | $ | 15,022 | $ | 33,581 | $ | 29,512 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable | 2,163 | 2,180 | 2,359 | 4,343 | 4,787 | |||||||||||||||
| Tax-exempt | 701 | 719 | 759 | 1,420 | 1,523 | |||||||||||||||
| Interest-bearing deposits at banks | 48 | 48 | 40 | 96 | 103 | |||||||||||||||
| Total interest income | 20,098 | 19,342 | 18,180 | 39,440 | 35,925 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 5,144 | 5,236 | 5,673 | 10,380 | 11,130 | |||||||||||||||
| FHLB and other borrowings | 861 | 565 | 1,027 | 1,426 | 2,049 | |||||||||||||||
| Subordinated debentures | 358 | 357 | 418 | 715 | 830 | |||||||||||||||
| Repurchase agreements | 52 | 65 | 88 | 117 | 195 | |||||||||||||||
| Total interest expense | 6,415 | 6,223 | 7,206 | 12,638 | 14,204 | |||||||||||||||
| Net interest income | 13,683 | 13,119 | 10,974 | 26,802 | 21,721 | |||||||||||||||
| Provision for credit losses | 1,000 | - | - | 1,000 | 300 | |||||||||||||||
| Net interest income after provision for credit losses | 12,683 | 13,119 | 10,974 | 25,802 | 21,421 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Fees and service charges | 2,476 | 2,388 | 2,691 | 4,864 | 5,152 | |||||||||||||||
| Gains on sales of loans, net | 740 | 562 | 648 | 1,302 | 1,160 | |||||||||||||||
| Bank owned life insurance | 278 | 272 | 248 | 550 | 493 | |||||||||||||||
| Losses on sales of investment securities, net | - | (2 | ) | - | (2 | ) | - | |||||||||||||
| Other | 132 | 138 | 133 | 270 | 315 | |||||||||||||||
| Total non-interest income | 3,626 | 3,358 | 3,720 | 6,984 | 7,120 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Compensation and benefits | 6,234 | 6,154 | 5,504 | 12,388 | 11,036 | |||||||||||||||
| Occupancy and equipment | 1,244 | 1,252 | 1,294 | 2,496 | 2,684 | |||||||||||||||
| Data processing | 629 | 396 | 492 | 1,025 | 973 | |||||||||||||||
| Amortization of mortgage servicing rights and other intangibles | 238 | 239 | 256 | 477 | 668 | |||||||||||||||
| Professional fees | 540 | 745 | 649 | 1,285 | 1,296 | |||||||||||||||
| Valuation allowance on real estate held for sale | - | - | 979 | - | 1,108 | |||||||||||||||
| Other | 2,076 | 1,975 | 1,921 | 4,051 | 3,881 | |||||||||||||||
| Total non-interest expense | 10,961 | 10,761 | 11,095 | 21,722 | 21,646 | |||||||||||||||
| Earnings before income taxes | 5,348 | 5,716 | 3,599 | 11,064 | 6,895 | |||||||||||||||
| Income tax expense | 944 | 1,015 | 587 | 1,959 | 1,105 | |||||||||||||||
| Net earnings | $ | 4,404 | $ | 4,701 | $ | 3,012 | $ | 9,105 | $ | 5,790 | ||||||||||
| Net earnings per share (1) | ||||||||||||||||||||
| Basic | $ | 0.76 | $ | 0.81 | $ | 0.52 | $ | 1.58 | $ | 1.01 | ||||||||||
| Diluted | 0.75 | 0.81 | 0.52 | 1.56 | 1.01 | |||||||||||||||
| Dividends per share (1) | 0.21 | 0.21 | 0.20 | 0.42 | 0.40 | |||||||||||||||
| Shares outstanding at end of period (1) | 5,783,312 | 5,778,610 | 5,743,044 | 5,783,312 | 5,743,044 | |||||||||||||||
| Weighted average common shares outstanding - basic (1) | 5,782,555 | 5,777,593 | 5,745,310 | 5,780,930 | 5,744,381 | |||||||||||||||
| Weighted average common shares outstanding - diluted (1) | 5,840,923 | 5,814,650 | 5,748,053 | 5,827,844 | 5,748,332 | |||||||||||||||
| Tax equivalent net interest income | $ | 13,851 | $ | 13,291 | $ | 11,167 | $ | 27,142 | $ | 22,075 | ||||||||||
(1) Share and per share values at or for the periods ended June 30, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)
| As of or for the | As of or for the | |||||||||||||||||||
| three months ended, | six months ended, | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Performance ratios: | ||||||||||||||||||||
| Return on average assets (1) | 1.11 | % | 1.21 | % | 0.78 | % | 1.16 | % | 0.75 | % | ||||||||||
| Return on average equity (1) | 12.25 | % | 13.71 | % | 9.72 | % | 12.96 | % | 9.30 | % | ||||||||||
| Net interest margin (1)(2) | 3.83 | % | 3.76 | % | 3.21 | % | 3.80 | % | 3.16 | % | ||||||||||
| Effective tax rate | 17.7 | % | 17.8 | % | 16.3 | % | 17.7 | % | 16.0 | % | ||||||||||
| Efficiency ratio (3) | 62.8 | % | 64.1 | % | 67.9 | % | 63.4 | % | 70.0 | % | ||||||||||
| Non-interest income to total income (3) | 20.9 | % | 20.4 | % | 25.3 | % | 20.7 | % | 24.7 | % | ||||||||||
| Average balances: | ||||||||||||||||||||
| Investment securities | $ | 363,878 | $ | 377,845 | $ | 437,136 | $ | 370,823 | $ | 447,034 | ||||||||||
| Loans | 1,081,865 | 1,048,585 | 955,104 | 1,065,317 | 950,420 | |||||||||||||||
| Assets | 1,592,939 | 1,574,295 | 1,545,816 | 1,583,669 | 1,550,739 | |||||||||||||||
| Interest-bearing deposits | 965,214 | 979,787 | 936,237 | 972,460 | 935,827 | |||||||||||||||
| FHLB and other borrowings | 74,007 | 48,428 | 72,875 | 61,288 | 72,747 | |||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||
| Repurchase agreements | 6,683 | 8,634 | 11,524 | 7,653 | 12,947 | |||||||||||||||
| Stockholders' equity | $ | 144,151 | $ | 139,068 | $ | 124,624 | $ | 141,623 | $ | 125,235 | ||||||||||
| Average tax equivalent yield/cost (1): | ||||||||||||||||||||
| Investment securities | 3.34 | % | 3.29 | % | 3.04 | % | 3.32 | % | 2.99 | % | ||||||||||
| Loans | 6.37 | % | 6.34 | % | 6.33 | % | 6.36 | % | 6.25 | % | ||||||||||
| Total interest-bearing assets | 5.60 | % | 5.53 | % | 5.29 | % | 5.56 | % | 5.20 | % | ||||||||||
| Interest-bearing deposits | 2.14 | % | 2.17 | % | 2.44 | % | 2.15 | % | 2.39 | % | ||||||||||
| FHLB and other borrowings | 4.67 | % | 4.73 | % | 5.67 | % | 4.69 | % | 5.66 | % | ||||||||||
| Subordinated debentures | 6.63 | % | 6.69 | % | 7.76 | % | 6.66 | % | 7.71 | % | ||||||||||
| Repurchase agreements | 3.12 | % | 3.05 | % | 3.07 | % | 3.08 | % | 3.03 | % | ||||||||||
| Total interest-bearing liabilities | 2.41 | % | 2.38 | % | 2.78 | % | 2.40 | % | 2.74 | % | ||||||||||
| Capital ratios: | ||||||||||||||||||||
| Equity to total assets | 9.13 | % | 9.04 | % | 8.22 | % | ||||||||||||||
| Tangible equity to tangible assets (3) | 7.15 | % | 6.99 | % | 6.09 | % | ||||||||||||||
| Book value per share | $ | 25.66 | $ | 24.69 | $ | 22.33 | ||||||||||||||
| Tangible book value per share (3) | $ | 19.66 | $ | 18.66 | $ | 16.19 | ||||||||||||||
| Rollforward of allowance for credit losses (loans): | ||||||||||||||||||||
| Beginning balance | $ | 12,802 | $ | 12,825 | $ | 10,851 | $ | 12,825 | $ | 10,608 | ||||||||||
| Charge-offs | (103 | ) | (108 | ) | (119 | ) | (211 | ) | (260 | ) | ||||||||||
| Recoveries | 63 | 85 | 171 | 148 | 305 | |||||||||||||||
| Provision for credit losses for loans | 1,000 | - | - | 1,000 | 250 | |||||||||||||||
| Ending balance | $ | 13,762 | $ | 12,802 | $ | 10,903 | $ | 13,762 | $ | 10,903 | ||||||||||
| Allowance for unfunded loan commitments | $ | 150 | $ | 150 | $ | 300 | ||||||||||||||
| Non-performing assets: | ||||||||||||||||||||
| Non-accrual loans | $ | 16,984 | $ | 13,280 | $ | 5,007 | ||||||||||||||
| Accruing loans over 90 days past due | - | - | - | |||||||||||||||||
| Real estate owned | 167 | 167 | 428 | |||||||||||||||||
| Total non-performing assets | $ | 17,151 | $ | 13,447 | $ | 5,435 | ||||||||||||||
| Loans 30-89 days delinquent | $ | 4,321 | $ | 9,977 | $ | 1,872 | ||||||||||||||
| Other ratios: | ||||||||||||||||||||
| Loans to deposits | 86.62 | % | 79.48 | % | 77.50 | % | ||||||||||||||
| Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.39 | % | 0.93 | % | 0.19 | % | ||||||||||||||
| Total non-performing loans to gross loans outstanding | 1.52 | % | 1.24 | % | 0.51 | % | ||||||||||||||
| Total non-performing assets to total assets | 1.06 | % | 0.85 | % | 0.35 | % | ||||||||||||||
| Allowance for credit losses to gross loans outstanding | 1.23 | % | 1.19 | % | 1.11 | % | ||||||||||||||
| Allowance for credit losses to total non-performing loans | 81.03 | % | 96.40 | % | 217.76 | % | ||||||||||||||
| Net loan charge-offs to average loans (1) | 0.01 | % | 0.01 | % | -0.02 | % | 0.01 | % | -0.01 | % | ||||||||||
| (1 | ) | Information is annualized. |
| (2 | ) | Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate. |
| (3 | ) | Non-GAAP financial measures. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most comparable GAAP equivalent. |
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)
| As of or for the | As of or for the | |||||||||||||||||||
| three months ended, | six months ended, | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Non-GAAP financial ratio reconciliation: | ||||||||||||||||||||
| Total non-interest expense | $ | 10,961 | $ | 10,761 | $ | 11,095 | $ | 21,722 | $ | 21,646 | ||||||||||
| Less: foreclosure and real estate owned expense | 49 | (50 | ) | 39 | (1 | ) | (11 | ) | ||||||||||||
| Less: amortization of other intangibles | (151 | ) | (152 | ) | (171 | ) | (303 | ) | (341 | ) | ||||||||||
| Less: valuation allowance on real estate held for sale | - | - | (979 | ) | - | (1,108 | ) | |||||||||||||
| Adjusted non-interest expense (A) | 10,859 | 10,559 | 9,984 | 21,418 | 20,186 | |||||||||||||||
| Net interest income (B) | 13,683 | 13,119 | 10,974 | 26,802 | 21,721 | |||||||||||||||
| Non-interest income | 3,626 | 3,358 | 3,720 | 6,984 | 7,120 | |||||||||||||||
| Less: losses on sales of investment securities, net | - | 2 | - | 2 | - | |||||||||||||||
| Less: gains on sales of premises and equipment and foreclosed assets | (9 | ) | - | - | (9 | ) | 9 | |||||||||||||
| Adjusted non-interest income (C) | $ | 3,617 | $ | 3,360 | $ | 3,720 | $ | 6,977 | $ | 7,129 | ||||||||||
| Efficiency ratio (A/(B+C)) | 62.8 | % | 64.1 | % | 67.9 | % | 63.4 | % | 70.0 | % | ||||||||||
| Non-interest income to total income (C/(B+C)) | 20.9 | % | 20.4 | % | 25.3 | % | 20.7 | % | 24.7 | % | ||||||||||
| Total stockholders' equity | $ | 148,376 | $ | 142,651 | $ | 128,254 | ||||||||||||||
| Less: goodwill and other intangible assets | (34,652 | ) | (34,803 | ) | (35,277 | ) | ||||||||||||||
| Tangible equity (D) | $ | 113,724 | $ | 107,848 | $ | 92,977 | ||||||||||||||
| Total assets | $ | 1,624,865 | $ | 1,578,589 | $ | 1,560,754 | ||||||||||||||
| Less: goodwill and other intangible assets | (34,652 | ) | (34,803 | ) | (35,277 | ) | ||||||||||||||
| Tangible assets (E) | $ | 1,590,213 | $ | 1,543,786 | $ | 1,525,477 | ||||||||||||||
| Tangible equity to tangible assets (D/E) | 7.15 | % | 6.99 | % | 6.09 | % | ||||||||||||||
| Shares outstanding at end of period (F) | 5,783,312 | 5,778,610 | 5,743,044 | |||||||||||||||||
| Tangible book value per share (D/F) | $ | 19.66 | $ | 18.66 | $ | 16.19 | ||||||||||||||
