Announces Second Quarter 2026 Earnings Per Share Growth of 6.1%
Declares Quarterly Cash Dividend of $0.21 per Share
Manhattan, KS, July 29, 2026 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. ("Landmark"; Nasdaq: LARK) reported diluted earnings per share of $0.88 for the second quarter of 2026, compared to $0.83 per share in the first quarter of 2026 and $0.72 per share in the same quarter of the prior year. Net earnings for the second quarter totaled $5.4 million, compared to $5.1 million in the prior quarter and $4.4 million in the second quarter of 2025. For the three months ended June 30, 2026, the return on average assets was 1.35%, the return on average equity was 13.23%, and the efficiency ratio(1) was 61.7%.
For the first six months of 2026, diluted earnings per share totaled $1.70, compared to $1.49 during the same period in 2025. Net earnings for the first six months of 2026 totaled $10.5 million, compared to $9.1 million in the first six months of 2025, or an increase of 14.9%, driven primarily by higher net interest income. For the six months ended June 30, 2026, the return on average assets was 1.32%, the return on average equity was 12.94%, and the efficiency ratio(1) was 62.2%.
Second quarter 2026 Performance Highlights
- Return on average assets improved to 1.35%, compared to 1.29% in the prior quarter and 1.11% in the second quarter of 2025.
- Return on average equity was 13.23%, compared to 12.65% in the prior quarter and 12.25% in the second quarter of 2025.
- Net interest margin decreased two basis points from the prior quarter to 4.22%, and improved 39 basis points compared to the second quarter of 2025. Net interest income expanded to $15.1 million, an increase of 0.4% as compared to the prior quarter and an increase of 10.2% from the same quarter in 2025. Net interest margin improvement is due partially to improving funding costs over the past year.
- Commercial, commercial real estate, construction and land, and agricultural loans grew $7.4 million compared to the prior quarter, an annualized increase of 4.3%, partially offset by a reduction in on-balance sheet residential mortgage loans.
- Non-interest-bearing deposits ended the quarter at 29.2% of total deposits. Total deposit costs improved to 1.30%, a decrease of eight basis points as compared to the prior quarter and a decrease of 26 basis points from the second quarter of 2025.
- Capital continues to grow and capital ratios remain strong. Tangible common equity to assets(1) increased to 8.44% as of June 30, 2026, from 8.11% as of March 31, 2026, and 7.15% as of June 30, 2025.
- Book value per share was $27.35 as of June 30, 2026, compared to $26.50 as of March 31, 2026. Tangible book value per share(1) grew to $21.76, compared to $20.89 as of March 31, 2026.
(1) Non-GAAP financial measure. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation.
"Landmark's strong second quarter results reflected record revenue of more than $19 million, solid earnings performance, and continued improvement in profitability," said Abby Wendel, President and Chief Executive Officer. "Our continued revenue growth demonstrates the strength of our relationship-based banking model, disciplined pricing strategies, and prudent balance sheet management."
Ms. Wendel continued, "We were pleased to see loan growth accelerate during the second quarter, especially across all areas of our commercial and agricultural-related loan portfolios, driven by our team's focus on attracting new clients while deepening relationships with existing clients. And while nonperforming loans, which increased during the quarter, remain higher than we would like, we are making steady progress improving the overall portfolio quality through proactive management and the resolution of credits that no longer align with our credit risk profile. Strong capital generation continues to strengthen our balance sheet which supports ongoing investments in talent, technology and facilities to enhance the customer and associate experience."
Dividend Declaration
Landmark's Board of Directors declared a cash dividend of $0.21 per share, to be paid August 27, 2026, to common stockholders of record as of the close of business on August 13, 2026.
Earnings Conference Call
Landmark will host a conference call to review the Company's second quarter financial results at 10:00 a.m. (Central time) on Thursday, July 30, 2026. Interested parties may participate via telephone by dialing (800) 715-9871.
An audio recording of the earnings call will be available through August 6, 2026. To access the recording, register via https://echo.registrations.events/signup using Conference ID 78609 to receive a unique access code to listen to the playback, including the correct numbers to dial.
SUMMARY OF SECOND QUARTER RESULTS
Net Interest Income
Net interest income in the second quarter of 2026 totaled $15.1 million, representing an increase of $57,000, or 0.4%, compared to the prior quarter and an increase of $1.4 million, or 10.2%, compared to the same quarter of the prior year. The increase in net interest income this quarter compared to both the prior quarter and the second quarter of 2025 was driven by higher rates on investments despite lower average balances, coupled with lower interest expense on deposits and other borrowings which more than offset a slight decrease in loan yields. The net interest margin for the second quarter of 2026 was 4.22%, a decrease of two basis points from 4.24% during the prior quarter and an increase of 39 basis points from 3.83% during the second quarter of the prior year. The average tax-equivalent yield on the investment securities portfolio grew to 3.66%, compared to 3.55% in the prior quarter and 3.34% in the second quarter of 2025 as lower-rate securities matured during the quarter. The average tax-equivalent yield on the loan portfolio declined nine basis points as compared to the prior quarter and decreased six basis points as compared to the second quarter of the prior year.
Compared to the first quarter of 2026, interest on deposits decreased $262,000, or 5.7%, due to lower rates, coupled with decreased average balances as brokered deposits declined. Interest on other borrowed funds increased $208,000 from the first quarter of 2026, driven by higher average balances, partially offset by a decrease in rates. The average rate on interest-bearing deposits decreased eight basis points from the prior quarter, to 1.82%, primarily due to lower rates on certificates of deposit. The average rate on other borrowed funds decreased 31 basis points to 4.54% in the second quarter of 2026, offset by an increase in average balances in borrowings from the FHLB.
Compared to the second quarter of 2025, interest on deposits decreased $795,000, or 15.5%, due to lower rates, coupled with decreased average balances. Interest on other borrowed funds decreased $449,000 from the second quarter of the prior year, due to lower rates and average balances. The average rate on interest-bearing deposits decreased 32 basis points from the second quarter of 2025, primarily due to lower rates on money market and checking accounts and certificates of deposit. The average rate on other borrowed funds decreased 44 basis points as compared to the second quarter of 2025.
Non-Interest Income
Non-interest income totaled $4.1 million for the second quarter of 2026, an increase of $331,000 from the prior quarter and an increase of $469,000 from the same quarter in the prior year. The increase in non-interest income as compared to the prior quarter was primarily due to an increase of $356,000 in gains on the sale of loans due to an increase in the volume of loans sold in the secondary market.
The increase in non-interest income as compared to the second quarter of the prior year was primarily due to an increase of $501,000 in gains on the sale of loans due to an increase in the volume of loans sold in the secondary market.
Non-Interest Expense
During the second quarter of 2026, non-interest expense totaled $12.0 million, an increase of $63,000, or 0.5%, compared to the prior quarter and an increase of $1.0 million, or 9.1%, compared to the same period in the prior year. Compared to the prior quarter, the increase in non-interest expense was primarily due to increases of $487,000 in professional fees and $246,000 in compensation and benefits expense. These increases were partially offset by decreases of $364,000 in other expense and $243,000 in occupancy and equipment expense. The increase in professional fees was attributable to $270,000 in one-time forensic accounting and legal costs related to previously disclosed fraudulent activity by a non-executive officer of the bank, coupled with an increase in consulting expenses for talent recruitment and development, and internal audit co-sourcing. The increase in compensation and benefits was attributable to higher incentive compensation expense in the second quarter of 2026 as compared to the prior quarter. The decrease in other expense was primarily due to $433,000 of fraud losses related to fraudulent activity by a non-executive officer of the bank, which was identified during the first quarter. The decrease in occupancy and equipment expense was related to expenses incurred to upgrade our core branch operation systems during the first quarter of 2026.
Compared to the second quarter of 2025, the increase in non-interest expense was primarily due to increases of $711,000 in professional fees and $335,000 in compensation and benefits. The increase in professional fees was attributable to $270,000 in one-time forensic accounting and legal costs related to previously disclosed fraudulent activity as outlined above, coupled with an increase in consulting expenses for talent recruitment and development, and internal audit co-sourcing. The increase in compensation and benefits was attributable to an increase in the number of employees in the current year, coupled with higher benefits expense as compared to the prior year.
Income Tax Expense
Landmark recorded income tax expense of $1.3 million in the second quarter of 2026, compared to $1.3 million in the prior quarter, and $944,000 in the second quarter of 2025. The effective tax rate was 19.7% in the second quarter of 2026, compared to 19.8% in the prior quarter and 17.7% in the second quarter of 2025.
Balance Sheet Highlights
As of June 30, 2026, gross period-end loans totaled $1.1 billion, an increase of $3.3 million from the prior quarter, while average loans declined $3.2 million. The increase in period-end loans was primarily driven by higher construction and land loans (growth of $4.5 million), commercial loans (growth of $1.5 million) and agriculture loans (growth of $1.5 million), offset by a decline in one-to-four family residential real estate loans (decline of $4.0 million). Investment securities available-for-sale decreased $1.3 million during the second quarter of 2026, primarily due to maturities occurring during the quarter.
Period-end deposit balances decreased $17.7 million to $1.3 billion at June 30, 2026, an annualized decrease of 5.4% compared to the prior quarter. The decrease in deposits was driven primarily by a decline in brokered deposits and more specifically by decreases in certificates of deposit and savings accounts of $33.5 million and $3.6 million, respectively. These decreases were partially offset by increases in non-interest-bearing demand deposits ($12.8 million increase) and money market and checking accounts ($6.7 million increase). Total period-end borrowings increased $15.7 million during the second quarter of 2026. At June 30, 2026, the loan to deposits ratio was 83.5%, compared to 82.1% in the prior quarter.
Stockholders' equity increased to $166.9 million (book value of $27.35 per share) as of June 30, 2026, from $161.6 million (book value of $26.50 per share) as of March 31, 2026. The increase in stockholders' equity was primarily due to net earnings for the quarter net of dividends paid, coupled with a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities). The ratio of equity to total assets increased to 10.39% on June 30, 2026, from 10.06% on March 31, 2026.
The allowance for credit losses totaled $12.7 million, or 1.15% of total gross loans, as of June 30, 2026, compared to $12.6 million, or 1.15% of total gross loans, as of March 31, 2026. Net loan charge-offs totaled $452,000 in the second quarter of 2026, compared to $349,000 during the first quarter of 2026 and $40,000 in the second quarter of the prior year. A provision for credit losses on loans of $500,000 was recorded in both the first and second quarters of 2026, a decrease of $500,000 as compared to the second quarter of the prior year.
Non-performing loans totaled $13.1 million, or 1.18% of gross loans, at June 30, 2026, compared to $10.4 million, or 0.94% of gross loans, at March 31, 2026. Loans 30-89 days delinquent totaled $6.3 million, or 0.57% of gross loans, as of June 30, 2026, compared to $7.4 million, or 0.68% of gross loans, as of March 31, 2026.
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 28 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, Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.
Contact Information
| Mark Herpich Chief Financial Officer (785) 565-2000 mherpich@banklandmark.com | Shelley Reed Investor Relations (913) 563-5672 sreed@banklandmark.com |
Special Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in 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. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations, and assumptions regarding its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. 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. Because forward-looking statements relate to the future, they are subject to inherent known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict and many of which may be out of the Company's control. 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 and changes in global energy market conditions; (ii) effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; (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) past and any future terrorist attacks, military conflicts, acts of war, changes in foreign relations, or other adverse external events, including ongoing conflicts in the Middle East, wars in Iran and Ukraine, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; (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) emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxvi) the availability of future equity or debt issuances and other capital raising opportunities on favorable terms; (xxvii) the Company's success at managing and responding to the risks involved in the foregoing items; and (xxviii) 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) | 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||||
| Assets | ||||||||||||||||||||||
| Cash and cash equivalents | - | 26,277 | - | 31,866 | - | 20,982 | - | 23,947 | - | 25,038 | ||||||||||||
| Interest-bearing deposits at other banks | 5,935 | 2,970 | 3,218 | 3,218 | 3,463 | |||||||||||||||||
| Investment securities available-for-sale, at fair value: | ||||||||||||||||||||||
| U.S. treasury securities | 43,478 | 50,001 | 53,183 | 50,833 | 51,624 | |||||||||||||||||
| Municipal obligations, tax exempt | 75,143 | 77,495 | 87,809 | 97,383 | 100,802 | |||||||||||||||||
| Municipal obligations, taxable | 97,718 | 94,738 | 90,603 | 82,236 | 75,037 | |||||||||||||||||
| Agency mortgage-backed securities | 124,469 | 119,826 | 116,562 | 119,576 | 124,979 | |||||||||||||||||
| Total investment securities available-for-sale | 340,808 | 342,060 | 348,157 | 350,028 | 352,442 | |||||||||||||||||
| Investment securities held-to-maturity | 3,847 | 3,818 | 3,789 | 3,760 | 3,730 | |||||||||||||||||
| Bank stocks, at cost | 8,079 | 7,123 | 5,756 | 8,021 | 10,946 | |||||||||||||||||
| Loans: | ||||||||||||||||||||||
| One-to-four family residential real estate | 364,271 | 368,282 | 375,299 | 381,641 | 377,133 | |||||||||||||||||
| Construction and land | 23,358 | 18,811 | 20,531 | 19,741 | 26,373 | |||||||||||||||||
| Commercial real estate | 407,756 | 407,901 | 394,323 | 389,574 | 370,455 | |||||||||||||||||
| Commercial | 177,904 | 176,373 | 178,201 | 186,656 | 204,303 | |||||||||||||||||
| Agriculture | 88,055 | 86,603 | 102,829 | 99,897 | 100,348 | |||||||||||||||||
| Municipal | 6,715 | 6,864 | 6,874 | 6,884 | 6,938 | |||||||||||||||||
| Consumer | 33,417 | 33,392 | 33,666 | 33,660 | 32,234 | |||||||||||||||||
| Total gross loans | 1,101,476 | 1,098,226 | 1,111,723 | 1,118,053 | 1,117,784 | |||||||||||||||||
| Net deferred loan costs (fees) and loans in process | 886 | (296 | - | (872 | - | (763 | - | (615 | - | |||||||||||||
| Allowance for credit losses | (12,657 | - | (12,609 | - | (12,458 | - | (12,299 | - | (13,762 | - | ||||||||||||
| Loans, net | 1,089,705 | 1,085,321 | 1,098,393 | 1,104,991 | 1,103,407 | |||||||||||||||||
| Loans held for sale, at fair value | 3,740 | 3,202 | 5,141 | 3,578 | 4,773 | |||||||||||||||||
| Bank owned life insurance | 40,572 | 40,287 | 40,176 | 39,890 | 39,607 | |||||||||||||||||
| Premises and equipment, net | 18,907 | 19,118 | 19,325 | 19,449 | 19,654 | |||||||||||||||||
| Goodwill | 32,377 | 32,377 | 32,377 | 32,377 | 32,377 | |||||||||||||||||
| Other intangible assets, net | 1,725 | 1,858 | 1,990 | 2,123 | 2,275 | |||||||||||||||||
| Mortgage servicing rights | 3,336 | 3,222 | 3,189 | 3,120 | 3,082 | |||||||||||||||||
| Real estate owned, net | - | - | - | - | 167 | |||||||||||||||||
| Other assets | 31,208 | 32,565 | 24,149 | 22,573 | 23,904 | |||||||||||||||||
| Total assets | - | 1,606,516 | - | 1,605,787 | - | 1,606,642 | - | 1,617,075 | - | 1,624,865 | ||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Non-interest-bearing demand | 380,543 | 367,737 | 364,695 | 365,959 | 351,993 | |||||||||||||||||
| Money market and checking | 596,083 | 589,410 | 650,987 | 579,413 | 562,919 | |||||||||||||||||
| Savings | 150,961 | 154,607 | 151,406 | 146,291 | 148,092 | |||||||||||||||||
| Certificates of deposit | 177,401 | 210,930 | 221,766 | 233,837 | 210,897 | |||||||||||||||||
| Total deposits | 1,304,988 | 1,322,684 | 1,388,854 | 1,325,500 | 1,273,901 | |||||||||||||||||
| FHLB and other borrowings | 83,415 | 67,062 | 10,567 | 90,483 | 155,110 | |||||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||||
| Repurchase agreements | 1,599 | 2,263 | 1,501 | 1,420 | 5,825 | |||||||||||||||||
| Accrued interest and other liabilities | 28,005 | 30,516 | 23,438 | 22,294 | 20,002 | |||||||||||||||||
| Total liabilities | 1,439,658 | 1,444,176 | 1,446,011 | 1,461,348 | 1,476,489 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||||
| Common stock | 61 | 61 | 61 | 58 | 58 | |||||||||||||||||
| Additional paid-in capital | 102,810 | 102,675 | 102,597 | 95,330 | 95,266 | |||||||||||||||||
| Retained earnings | 71,561 | 67,449 | 63,658 | 67,327 | 63,612 | |||||||||||||||||
| Accumulated other comprehensive loss | (7,574 | - | (8,574 | - | (5,685 | - | (6,988 | - | (10,560 | - | ||||||||||||
| Total stockholders' equity | 166,858 | 161,611 | 160,631 | 155,727 | 148,376 | |||||||||||||||||
| Total liabilities and stockholders' equity | - | 1,606,516 | - | 1,605,787 | - | 1,606,642 | - | 1,617,075 | - | 1,624,865 | ||||||||||||
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) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Interest income: | |||||||||||||||||||||
| Loans | - | 17,147 | - | 17,260 | - | 17,186 | - | 34,407 | - | 33,581 | |||||||||||
| Investment securities: | |||||||||||||||||||||
| Taxable | 2,482 | 2,334 | 2,163 | 4,816 | 4,343 | ||||||||||||||||
| Tax-exempt | 571 | 595 | 701 | 1,166 | 1,420 | ||||||||||||||||
| Interest-bearing deposits at banks | 51 | 59 | 48 | 110 | 96 | ||||||||||||||||
| Total interest income | 20,251 | 20,248 | 20,098 | 40,499 | 39,440 | ||||||||||||||||
| Interest expense: | |||||||||||||||||||||
| Deposits | 4,349 | 4,611 | 5,144 | 8,960 | 10,380 | ||||||||||||||||
| FHLB and other borrowings | 484 | 277 | 861 | 761 | 1,426 | ||||||||||||||||
| Subordinated debentures | 324 | 322 | 358 | 646 | 715 | ||||||||||||||||
| Repurchase agreements | 14 | 15 | 52 | 29 | 117 | ||||||||||||||||
| Total interest expense | 5,171 | 5,225 | 6,415 | 10,396 | 12,638 | ||||||||||||||||
| Net interest income | 15,080 | 15,023 | 13,683 | 30,103 | 26,802 | ||||||||||||||||
| Provision for credit losses | 500 | 570 | 1,000 | 1,070 | 1,000 | ||||||||||||||||
| Net interest income after provision for credit losses | 14,580 | 14,453 | 12,683 | 29,033 | 25,802 | ||||||||||||||||
| Non-interest income: | |||||||||||||||||||||
| Fees and service charges | 2,451 | 2,363 | 2,476 | 4,814 | 4,864 | ||||||||||||||||
| Gains on sales of loans, net | 1,241 | 885 | 740 | 2,126 | 1,302 | ||||||||||||||||
| Bank owned life insurance | 285 | 373 | 278 | 658 | 550 | ||||||||||||||||
| Losses on sales of investment securities, net | - | - | - | - | (2 | - | |||||||||||||||
| Other | 118 | 143 | 132 | 261 | 270 | ||||||||||||||||
| Total non-interest income | 4,095 | 3,764 | 3,626 | 7,859 | 6,984 | ||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||
| Compensation and benefits | 6,569 | 6,323 | 6,234 | 12,892 | 12,388 | ||||||||||||||||
| Occupancy and equipment | 1,207 | 1,450 | 1,244 | 2,657 | 2,496 | ||||||||||||||||
| Data processing | 494 | 554 | 629 | 1,048 | 1,025 | ||||||||||||||||
| Amortization of mortgage servicing rights and other intangibles | 225 | 228 | 238 | 453 | 477 | ||||||||||||||||
| Professional fees | 1,251 | 764 | 540 | 2,015 | 1,285 | ||||||||||||||||
| Other | 2,215 | 2,579 | 2,076 | 4,794 | 4,051 | ||||||||||||||||
| Total non-interest expense | 11,961 | 11,898 | 10,961 | 23,859 | 21,722 | ||||||||||||||||
| Earnings before income taxes | 6,714 | 6,319 | 5,348 | 13,033 | 11,064 | ||||||||||||||||
| Income tax expense | 1,322 | 1,253 | 944 | 2,575 | 1,959 | ||||||||||||||||
| Net earnings | - | 5,392 | - | 5,066 | - | 4,404 | - | 10,458 | - | 9,105 | |||||||||||
| Net earnings per share (1) | |||||||||||||||||||||
| Basic | - | 0.88 | - | 0.83 | - | 0.73 | - | 1.72 | - | 1.50 | |||||||||||
| Diluted | 0.88 | 0.83 | 0.72 | 1.70 | 1.49 | ||||||||||||||||
| Dividends per share (1) | 0.21 | 0.21 | 0.20 | 0.42 | 0.40 | ||||||||||||||||
| Shares outstanding at end of period (1) | 6,100,582 | 6,098,324 | 6,072,478 | 6,100,582 | 6,072,478 | ||||||||||||||||
| Weighted average common shares outstanding - basic (1) | 6,098,229 | 6,083,271 | 6,071,683 | 6,090,791 | 6,069,977 | ||||||||||||||||
| Weighted average common shares outstanding - diluted (1) | 6,161,461 | 6,139,357 | 6,132,969 | 6,149,859 | 6,119,236 | ||||||||||||||||
| Tax equivalent net interest income | - | 15,222 | - | 15,170 | - | 13,851 | - | 30,391 | - | 27,142 | |||||||||||
(1) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)
| As of or for the three months ended, | As of or for the six months ended, | |||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Performance ratios: | ||||||||||||||||||||||
| Return on average assets (1) | 1.35 | - | 1.29 | - | 1.11 | - | 1.32 | - | 1.16 | - | ||||||||||||
| Return on average equity (1) | 13.23 | - | 12.65 | - | 12.25 | - | 12.94 | - | 12.96 | - | ||||||||||||
| Net interest margin (1)(2) | 4.22 | - | 4.24 | - | 3.83 | - | 4.23 | - | 3.80 | - | ||||||||||||
| Effective tax rate | 19.7 | - | 19.8 | - | 17.7 | - | 19.8 | - | 17.7 | - | ||||||||||||
| Efficiency ratio (3) | 61.7 | - | 62.7 | - | 62.8 | - | 62.2 | - | 63.4 | - | ||||||||||||
| Adjusted non-interest income to total income (3) | 21.4 | - | 19.9 | - | 20.9 | - | 20.6 | - | 20.7 | - | ||||||||||||
| Average balances: | ||||||||||||||||||||||
| Investment securities | - | 349,813 | - | 350,802 | - | 363,878 | - | 350,305 | - | 370,823 | ||||||||||||
| Loans | 1,090,422 | 1,093,593 | 1,081,865 | 1,091,999 | 1,065,317 | |||||||||||||||||
| Assets | 1,602,782 | 1,594,612 | 1,592,939 | 1,598,719 | 1,583,669 | |||||||||||||||||
| Interest-bearing deposits | 958,407 | 983,148 | 965,214 | 970,709 | 972,460 | |||||||||||||||||
| Total deposits | 1,336,971 | 1,355,478 | 1,324,507 | 1,346,173 | 1,328,629 | |||||||||||||||||
| FHLB and other borrowings | 49,201 | 27,851 | 74,007 | 38,585 | 61,288 | |||||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||||
| Repurchase agreements | 1,809 | 1,871 | 6,683 | 1,840 | 7,653 | |||||||||||||||||
| Stockholders' equity | - | 163,505 | - | 162,463 | - | 144,151 | - | 162,987 | - | 141,623 | ||||||||||||
| Average tax equivalent yield/cost (1): | ||||||||||||||||||||||
| Investment securities | 3.66 | - | 3.55 | - | 3.34 | - | 3.61 | - | 3.32 | - | ||||||||||||
| Loans | 6.31 | - | 6.40 | - | 6.37 | - | 6.35 | - | 6.36 | - | ||||||||||||
| Total interest-bearing assets | 5.66 | - | 5.69 | - | 5.60 | - | 5.68 | - | 5.56 | - | ||||||||||||
| Interest-bearing deposits | 1.82 | - | 1.90 | - | 2.14 | - | 1.86 | - | 2.15 | - | ||||||||||||
| Total deposits | 1.30 | - | 1.38 | - | 1.56 | - | 1.34 | - | 1.58 | - | ||||||||||||
| FHLB and other borrowings | 3.95 | - | 4.03 | - | 4.67 | - | 3.98 | - | 4.69 | - | ||||||||||||
| Subordinated debentures | 6.00 | - | 6.03 | - | 6.63 | - | 6.02 | - | 6.66 | - | ||||||||||||
| Repurchase agreements | 3.10 | - | 3.25 | - | 3.12 | - | 3.18 | - | 3.08 | - | ||||||||||||
| Total interest-bearing liabilities | 2.01 | - | 2.05 | - | 2.41 | - | 2.03 | - | 2.40 | - | ||||||||||||
| Capital ratios: | ||||||||||||||||||||||
| Equity to total assets | 10.39 | - | 10.06 | - | 9.13 | - | ||||||||||||||||
| Tangible equity to tangible assets (3) | 8.44 | - | 8.11 | - | 7.15 | - | ||||||||||||||||
| Book value per share | - | 27.35 | - | 26.50 | - | 24.43 | ||||||||||||||||
| Tangible book value per share (3) | - | 21.76 | - | 20.89 | - | 18.73 | ||||||||||||||||
| Rollforward of allowance for credit losses (loans): | ||||||||||||||||||||||
| Beginning balance | - | 12,609 | - | 12,458 | - | 12,802 | - | 12,458 | - | 12,825 | ||||||||||||
| Charge-offs | (825 | - | (394 | - | (103 | - | (1,219 | - | (211 | - | ||||||||||||
| Recoveries | 373 | 45 | 63 | 418 | 148 | |||||||||||||||||
| Provision for credit losses for loans | 500 | 500 | 1,000 | 1,000 | 1,000 | |||||||||||||||||
| Ending balance | - | 12,657 | - | 12,609 | - | 13,762 | - | 12,657 | - | 13,762 | ||||||||||||
| Allowance for unfunded loan commitments | - | 220 | - | 220 | - | 150 | ||||||||||||||||
| Non-performing assets: | ||||||||||||||||||||||
| Non-accrual loans | - | 13,051 | - | 10,378 | - | 16,984 | ||||||||||||||||
| Accruing loans over 90 days past due | - | - | - | |||||||||||||||||||
| Real estate owned | - | - | 167 | |||||||||||||||||||
| Total non-performing assets | - | 13,051 | - | 10,378 | - | 17,151 | ||||||||||||||||
| Loans 30-89 days delinquent | - | 6,282 | - | 7,448 | - | 4,321 | ||||||||||||||||
| Other ratios: | ||||||||||||||||||||||
| Loans to deposits | 83.50 | - | 82.05 | - | 86.62 | - | ||||||||||||||||
| Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.57 | - | 0.68 | - | 0.39 | - | ||||||||||||||||
| Total non-performing loans to gross loans outstanding | 1.18 | - | 0.94 | - | 1.52 | - | ||||||||||||||||
| Total non-performing assets to total assets | 0.81 | - | 0.65 | - | 1.06 | - | ||||||||||||||||
| Allowance for credit losses to gross loans outstanding | 1.15 | - | 1.15 | - | 1.23 | - | ||||||||||||||||
| Allowance for credit losses to total non-performing loans | 96.98 | - | 121.50 | - | 81.03 | - | ||||||||||||||||
| Net loan charge-offs to average loans (1) | 0.17 | - | 0.13 | - | 0.01 | - | 0.15 | - | 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.
(4) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures (unaudited)
| As of or for the three months ended, | As of or for the six months ended, | ||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||
| Non-GAAP financial ratio reconciliation: | |||||||||||||||||||||||
| Net interest income | - | 15,080 | - | 15,023 | - | 13,683 | - | 30,103 | - | 26,802 | |||||||||||||
| Non-interest income | 4,095 | 3,764 | 3,626 | 7,859 | 6,984 | ||||||||||||||||||
| Total revenue | - | 19,175 | - | 18,787 | - | 17,309 | - | 37,962 | - | 33,786 | |||||||||||||
| Total non-interest expense | - | 11,961 | - | 11,898 | - | 10,961 | - | 23,859 | - | 21,722 | |||||||||||||
| Less: foreclosure and real estate owned expense | 1 | (3 | - | 49 | (2 | - | (1 | - | |||||||||||||||
| Less: amortization of other intangibles | (132 | - | (133 | - | (151 | - | (265 | - | (303 | - | |||||||||||||
| Less: valuation allowance on assets held for sale | - | - | - | - | - | ||||||||||||||||||
| Adjusted non-interest expense (A) | 11,830 | 11,762 | 10,859 | 23,592 | 21,418 | ||||||||||||||||||
| Net interest income (B) | 15,080 | 15,023 | 13,683 | 30,103 | 26,802 | ||||||||||||||||||
| Non-interest income | 4,095 | 3,764 | 3,626 | 7,859 | 6,984 | ||||||||||||||||||
| Less: losses on sales of investment securities, net | - | - | - | - | 2 | ||||||||||||||||||
| Less: gains on sales of premises and equipment and foreclosed assets | - | (32 | - | (9 | - | (32 | - | (9 | - | ||||||||||||||
| Adjusted non-interest income (C) | - | 4,095 | - | 3,732 | - | 3,617 | - | 7,827 | - | 6,977 | |||||||||||||
| Efficiency ratio (A/(B+C)) | 61.7 | - | 62.7 | - | 62.8 | - | 62.2 | - | 63.4 | - | |||||||||||||
| Adjusted non-interest income to total income (C/(B+C)) | 21.4 | - | 19.9 | - | 20.9 | - | 20.6 | - | 20.7 | - | |||||||||||||
| Total stockholders' equity | - | 166,858 | - | 161,611 | - | 148,376 | |||||||||||||||||
| Less: goodwill and other intangible assets | (34,102 | - | (34,235 | - | (34,652 | - | |||||||||||||||||
| Tangible equity (D) | - | 132,756 | - | 127,376 | - | 113,724 | |||||||||||||||||
| Total assets | - | 1,606,516 | - | 1,605,787 | - | 1,624,865 | |||||||||||||||||
| Less: goodwill and other intangible assets | (34,102 | - | (34,235 | - | (34,652 | - | |||||||||||||||||
| Tangible assets (E) | - | 1,572,414 | - | 1,571,552 | - | 1,590,213 | |||||||||||||||||
| Tangible equity to tangible assets (D/E) | 8.44 | - | 8.11 | - | 7.15 | - | |||||||||||||||||
| Shares outstanding at end of period (F) | 6,100,582 | 6,098,324 | 6,072,478 | ||||||||||||||||||||
| Tangible book value per share (D/F) | - | 21.76 | - | 20.89 | - | 18.73 | |||||||||||||||||
(1) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025.
