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Landmark Bancorp, Inc. Announces First Quarter Earnings Per Share of $0.51. Declares Cash Dividend of $0.21 per Share

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Landmark Bancorp, Inc. reported diluted earnings per share of $0.51 for the first quarter of 2024, up from $0.48 in the previous quarter but down from $0.61 in the same period last year. Net earnings were $2.8 million, with a return on average assets of 0.72% and a return on average equity of 8.88%. Highlights include solid loan growth, controlled expenses, and good credit quality. Non-interest income increased, while non-interest expense saw a slight decline. The company declared a cash dividend of $0.21 per share, up 5% from the previous period.

Landmark Bancorp, Inc. ha riportato utili diluiti per azione di 0,51$ per il primo trimestre del 2024, in aumento rispetto ai 0,48$ del trimestre precedente ma in calo dai 0,61$ dello stesso periodo dell'anno scorso. Gli utili netti sono stati di 2,8 milioni di dollari, con un rendimento sugli asset medi dello 0,72% e un rendimento sul patrimonio medio dell'8,88%. Tra i punti di forza figurano una solida crescita del portafoglio crediti, spese controllate e una buona qualità del credito. I ricavi da attività non basate sugli interessi sono aumentati, mentre le spese non interessanti hanno registrato un leggero calo. La società ha dichiarato un dividendo in contanti di 0,21$ per azione, in aumento del 5% rispetto al periodo precedente.
Landmark Bancorp, Inc. reportó ganancias diluidas por acción de 0,51$ para el primer trimestre de 2024, un aumento desde los 0,48$ del trimestre anterior pero una disminución desde los 0,61$ del mismo periodo del año pasado. Las ganancias netas fueron de 2,8 millones de dólares, con un retorno sobre los activos promedio del 0,72% y un retorno sobre el patrimonio promedio del 8,88%. Los aspectos destacados incluyen un sólido crecimiento del préstamo, gastos controlados y buena calidad crediticia. El ingreso no derivado de intereses aumentó, mientras que el gasto no derivado de intereses mostró una ligera disminución. La compañía declaró un dividendo en efectivo de 0,21$ por acción, un aumento del 5% respecto al periodo anterior.
Landmark Bancorp, Inc.는 2024년 첫 분기에 주당 0.51달러의 희석된 수익을 보고했습니다. 이는 전 분기의 0.48달러에서 증가했지만 작년 같은 기간의 0.61달러에서는 감소했습니다. 순이익은 280만 달러였으며, 평균 자산 수익률은 0.72%, 평균 자본 수익률은 8.88%였습니다. 주요 성과로는 대출 증가, 비용 통제 및 양호한 신용 품질이 있습니다. 비이자 소득은 증가했으며, 비이자 비용은 소폭 감소했습니다. 회사는 주당 0.21달러의 현금 배당을 선언했으며, 이는 이전 기간 대비 5% 증가한 것입니다.
Landmark Bancorp, Inc. a rapporté des bénéfices dilués par action de 0,51$ pour le premier trimestre de 2024, en hausse par rapport aux 0,48$ du trimestre précédent mais en baisse par rapport aux 0,61$ de la même période l'année dernière. Les bénéfices nets se sont élevés à 2,8 millions de dollars, avec un rendement sur les actifs moyens de 0,72% et un rendement sur les capitaux propres moyens de 8,88%. Les points forts incluent une croissance solide des prêts, des dépenses contrôlées et une bonne qualité de crédit. Les revenus non liés aux intérêts ont augmenté, tandis que les dépenses non liées aux intérêts ont légèrement diminué. La société a déclaré un dividende en espèces de 0,21$ par action, en hausse de 5% par rapport à la période précédente.
Landmark Bancorp, Inc. meldete für das erste Quartal 2024 einen verdünnten Gewinn pro Aktie von 0,51$, ein Anstieg gegenüber den 0,48$ im vorherigen Quartal, jedoch ein Rückgang von den 0,61$ im gleichen Zeitraum des Vorjahres. Der Nettogewinn lag bei 2,8 Millionen Dollar, mit einer Rendite auf durchschnittliche Aktiva von 0,72% und einer Rendite auf durchschnittliches Eigenkapital von 8,88%. Zu den Höhepunkten gehören solides Kreditwachstum, kontrollierte Ausgaben und gute Kreditqualität. Die Nichtzins-Einnahmen stiegen, während die Nichtzins-Ausgaben leicht zurückgingen. Das Unternehmen erklärte eine Barausschüttung von 0,21$ pro Aktie, eine Steigerung um 5% gegenüber dem vorherigen Zeitraum.
Positive
  • Solid loan growth and controlled expenses in the first quarter of 2024.

  • Good credit quality with low net loan charge-offs and non-accrual loans.

  • Increased net interest margin and stable interest rates benefited the company.

  • Non-interest income increased, with gains offsetting previous losses.

  • Cash dividend increased by 5% to $0.21 per share, reflecting confidence in financial performance.

Negative
  • Net interest income decreased slightly due to higher interest costs on deposits.

  • Non-interest expense increased marginally, impacting overall expenses.

  • Income tax expense increased compared to the previous quarter.

  • Unrealized net losses on investment securities rose, influenced by higher interest rates.

  • The company reported a provision for credit losses of $300,000 related to growth in loans.

Insights

Reviewing Landmark Bancorp's Q1 earnings per share of $0.51 and subsequent cash dividend declaration of $0.21 per share, a 5% increase from the prior dividend, reflects a company that is maintaining a trajectory of stable returns for shareholders. Loan growth and controlled expenses indicate effective management of resources resulting in solid financial health. However, a decrease in net interest income due to higher deposit rates could signal margin pressures. The shift from high-cost funds to an increase in average interest-bearing deposits may indicate a strategic move to enhance liquidity management. Overall, the financials suggest a careful balance between shareholder returns and prudent financial stewardship.

Landmark Bancorp's credit quality metrics should reassure investors of the company's risk management capabilities. A low ratio of net loan charge-offs to total loans and the maintenance of a robust allowance for credit losses at 1.13% reflect a conservative approach to credit risk. The slight uptick in non-performing and delinquent loans is not unusual and seems to be within manageable limits. Their effective management of potential credit losses by setting aside a $300,000 provision for credit losses aligns with best practices, particularly in light of loan portfolio growth.

The loan portfolio's diversification into residential mortgage, construction and commercial loans, aligned with market demands, points to Landmark Bancorp's adept positioning within its operational markets. The growth in one-to-four family residential real estate loans, specifically adjustable-rate mortgages, suggests responsiveness to consumer financing needs. Additionally, the company's liquidity position, evidenced by available credit lines and a healthy loans-to-deposits ratio, positions them favorably to capitalize on future growth opportunities.

Manhattan, KS, May 01, 2024 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.51 for the three months ended March 31, 2024, compared to $0.48 per share in the fourth quarter of 2023 and $0.61 per share in the same quarter last year. Net earnings for the first quarter of 2024 amounted to $2.8 million, compared to $2.6 million in the prior quarter and $3.4 million for the first quarter of 2023. For the three months ended March 31, 2024, the return on average assets was 0.72%, the return on average equity was 8.88%, and the efficiency ratio was 73.0%.

In announcing these results, Abby Wendel, President and Chief Executive Officer of Landmark, said, “We are pleased with our first quarter results, which included continued solid loan growth, controlled expenses, and good credit quality. Compared to the fourth quarter 2023, total gross loans increased by $15.4 million, or 6.5% on an annualized basis, reflecting solid demand for residential mortgage, construction and commercial loans. Average interest-bearing deposits also increased $24.8 million this quarter. Net interest income totaled $10.7 million, a decrease of 1.3% from the prior quarter, as increased interest costs on deposits outpaced growth in interest income on loans. Our net interest margin increased slightly to 3.12% aided by relatively stable interest rates this quarter from the fourth quarter. Non-interest income increased $1.1 million as the fourth quarter of 2023 included a $1.2 million loss on the sale of lower rate investment securities. Our continuing focus on managing non-interest expense resulted in a slight decline this quarter while non-interest expense increased only 2.0% over the same period last year. A provision for credit losses of $300,000 was recorded in the first quarter of 2024 as we increased our allowance for credit losses to reflect the growth in loans.”

Ms. Wendel continued, “The credit quality of our loan portfolio remains excellent. Landmark recorded net loan charge-offs of $7,000 in the first quarter of 2024 compared to $362,000 in the fourth quarter of 2023 and $47,000 in the first quarter of 2023. The ratio of net loan charge-offs to loans remains low. Non-accrual loans totaled $3.6 million, or 0.38%, of gross loans at March 31, 2024 while the balance of loans past due 30 to 89 days totaled $3.9 million, or 0.41%, of gross loans at March 31, 2024. The allowance for credit losses totaled $10.9 million at March 31, 2024, or 1.13% of period end gross loans. Our loans to deposits ratio totaled 73.6% at the end of the first quarter reflecting ample liquidity for future loan growth.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, an increase of 5%, to be paid May 29, 2024, to common stockholders of record as of the close of business on May 15, 2024.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, May 2, 2024. Investors may participate via telephone by dialing (833) 470-1428 and using access code 688391. A replay of the call will be available through June 1, 2024, by dialing (866) 813-9403 and using access code 260752.

SUMMARY OF FIRST QUARTER RESULTS

Net Interest Income

Net interest income in the first quarter of 2024 amounted to $10.7 million representing a decrease of $139,000, or 1.3%, compared to the previous quarter. This decrease in net interest income was due mainly to higher interest expense on deposits, and was partially offset by growth in interest income on loans and lower interest expense on borrowings. The net interest margin increased to 3.12% during the first quarter. Compared to the previous quarter, interest income on loans increased $267,000, or 1.9%, to $14.5 million due to both higher balances and rates. The average tax-equivalent yield on the loan portfolio increased 12 basis points to 6.16%. Interest expense on deposits increased $578,000, or 11.8%, in the first quarter 2024, compared to the prior quarter, mainly due to higher rates and average balances on interest-bearing deposits. The average rate on interest-bearing deposits increased in the first quarter to 2.35% compared to 2.13% in the prior quarter. Interest on borrowed funds decreased $180,000 due primarily to lower average balances.

Non-Interest Income

Non-interest income totaled $3.4 million for the first quarter of 2024, a decrease of $95,000, or 2.7%, compared to the same period last year and an increase of $1.1 million, or 50.8%, from the previous quarter. The increase in non-interest income compared to the fourth quarter of 2023 was primarily the result of securities losses of $1.2 million taken in the fourth quarter of 2023 which did not re-occur in the current quarter. Gains on sales of one-to-four family residential real estate loans declined $181,000 from the same period last year but increased $257,000 from the prior quarter. Fees and service charges increased $103,000 compared to the same period last year but declined $302,000 from the prior quarter.

Non-Interest Expense

During the first quarter of 2024, non-interest expense totaled $10.6 million, an increase of $208,000, or 2.0%, over the same period in 2023 and a decrease of $11,000 compared to the prior quarter. Compared to the 1st quarter last year, compensation and benefits were flat while data processing expense declined 18.3%. Amortization expense also declined 10.6% but professional fees and other expenses increased $156,000 and $198,000, respectively. The increase in professional fees was associated with increased legal costs associated with revisions to the Company’s benefit plans while growth in other expense resulted from increased due to a valuation allowance recorded against real estate held for sale and an increase in operating losses incurred.

Income Tax Expense

Landmark recorded income tax expense of $518,000 in the first quarter of 2024 compared to income tax expense of $693,000 in the first quarter of 2023 and an income tax benefit of $111,000 in the fourth quarter of 2023. The effective tax rate was 15.7% in the first quarter of 2024 compared to 17.1% in the first quarter of 2023 and (4.4%) in the fourth quarter of 2023. The fourth quarter of 2023 included the recognition of $517,000 of previously unrecognized tax benefits, which reduced the effective tax rate in the periods.

Liquidity Highlights

In addition to local retail, commercial and public fund deposits, Landmark has access to multiple sources of brokered deposits that can be utilized for liquidity. Landmark also has diverse sources of liquidity available through both secured and unsecured borrowing lines of credit. At March 31, 2024, Landmark had collateral pledged to the Federal Home Loan Bank (“FHLB”) that would allow for an additional $165.3 million of FHLB borrowings. Additionally, investment securities were pledged to the Federal Reserve discount window that provides borrowing capacity with the Federal Reserve of $56.9 million. Landmark also had various other federal funds agreements, both secured and unsecured with correspondent banks totaling approximately $30.0 million in available credit at March 31, 2024.

As of March 31, 2024, Landmark had unpledged available-for-sale investment securities with a fair value of $63.4 million as well as approximately $69.5 million of pledged investment securities in excess of required levels. The average life of the Company’s investment portfolio is approximately 4.2 years and is projected to generate cash flow through maturities of $71.5 million over the next 12 months.

Balance Sheet Highlights

As of March 31, 2024, gross loans totaled $964.0 million, an increase of $15.4 million, or 6.5% annualized since December 31, 2023. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $10.3 million), construction and land (growth of $3.7 million), commercial real estate (growth of $2.4 million), municipal (growth of $1.2 million) and commercial (growth of $1.0 million) loans. The increase in one-to-four family residential real estate loans is primarily related to continued demand for adjustable-rate mortgage loans which are retained in our portfolio. Investment securities decreased $15.5 million during the first quarter of 2024, while pre-tax unrealized net losses on these investment securities increased from $21.9 million at December 31, 2023 to $24.4 million at March 31, 2024 mainly due to slightly higher interest rates.

Period end deposit balances decreased $22.7 million to $1.3 billion at March 31, 2024. The decrease in deposits was mainly driven by declines in money market and checking (decrease of $30.3 million) and non-interest-bearing demand (decrease of $2.7 million) in the first quarter but partly offset by higher certificate of deposit accounts and savings accounts, which increased in total by $10.3 million. The decrease in money market and checking accounts was mainly driven by a seasonal decline in public fund deposit account balances. However average interest-bearing deposits increased $24.8 million this quarter. Average borrowings, including FHLB advances and repurchase agreements decreased $11.8 million this quarter. At March 31, 2024, the loan to deposits ratio was 73.6% compared to 71.2% in the prior quarter and 66.4% in the same period last year.

Estimated uninsured deposits, excluding collateralized public fund deposits, totaled $174.2 million and $197.2 million as of March 31, 2024 and December 31, 2023, respectively. This represents approximately 14% of total deposits at March 31, 2024 and compares favorably with other similar community banking organizations. Over 92% of Landmark’s total deposits were considered core deposits at March 31, 2024. These deposit balances are from retail, commercial and public fund customers located in the markets where the Company has bank branch locations. Brokered deposits are considered non-core and totaled $95.7 million at March 31, 2024 compared to $83.2 million at December 31, 2023 and are utilized as an additional source of liquidity.

Stockholders’ equity decreased slightly to $126.7 million (book value of $23.14 per share) as of December 31, 2023, from $126.9 million (book value of $23.17 per share) as of December 31, 2023, primarily due to an increase in other comprehensive losses during the first quarter of 2024. The increase in other comprehensive losses resulted from higher market interest rates which increased the unrealized losses on the Company’s investment securities portfolio. The ratio of equity to total assets increased to 8.16% on March 31, 2024, from 8.13% on December 31, 2023.

The allowance for credit losses totaled $10.9 million, or 1.13% of total gross loans on March 31, 2024, compared to $10.6 million, or 1.12% of total gross loans on December 31, 2023. Net loan charge-offs totaled $7,000 in the first quarter of 2024, compared to $47,000 during the same quarter last year and $362,000 during the fourth quarter of 2023. A provision for credit losses of $300,000 was made in the first quarter of 2024 related to an increase loan balances and unfunded loan commitments.

Non-performing loans totaled $3.6 million, or 0.38% of gross loans at March 31, 2024 compared to $2.4 million, or 0.25% of gross loans at December 31, 2023. Loans 30-89 days delinquent totaled $3.9 million, or 0.41% of gross loans, as of March 31, 2024 compared to $1.6 million, or 0.17% of gross loans, as of December 31, 2023. Real estate owned totaled $428,000 at March 31, 2024.

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 30 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, 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, national and international economies, including the effects of inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including any changes in response to the recent failures of other banks; (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) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of rate changes, if any, by the Federal Reserve; (x) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; 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)

(Dollars in thousands) March 31,  December 31,  September 30,  June 30,  March 31, 
  2024  2023  2023  2023  2023 
Assets                    
Cash and cash equivalents $16,468  $27,101  $23,821  $20,038  $23,764 
Interest-bearing deposits at other banks  4,920   4,918   5,904   8,336   8,586 
Investment securities available-for-sale, at fair value:                    
U.S. treasury securities  93,683   95,667   118,341   121,480   121,759 
U.S. federal agency obligations  -   -   -   -   1,993 
Municipal obligations, tax exempt  118,445   120,623   115,706   124,451   128,281 
Municipal obligations, taxable  75,371   79,083   73,993   77,713   73,468 
Agency mortgage-backed securities  149,777   157,396   148,817   160,734   164,669 
Total investment securities available-for-sale  437,276   452,769   456,857   484,378   490,170 
Investment securities held-to-maturity  3,584   3,555   3,525   3,496   3,467 
Bank stocks, at cost  7,850   8,123   8,009   9,445   6,876 
Loans:                    
One-to-four family residential real estate  312,833   302,544   289,571   259,655   246,079 
Construction and land  24,823   21,090   21,657   22,016   23,137 
Commercial real estate  323,397   320,962   323,427   314,889   316,900 
Commercial  181,945   180,942   185,831   181,424   172,331 
Paycheck Protection Program (PPP)  -   -   -   -   21 
Agriculture  86,808   89,680   84,560   84,345   80,499 
Municipal  5,690   4,507   3,200   2,711   2,004 
Consumer  28,544   28,931   29,180   28,219   28,835 
Total gross loans  964,040   948,656   937,426   893,259   869,806 
Net deferred loan (fees) costs and loans in process  (578)  (429)  (396)  (261)  2 
Allowance for credit losses  (10,851)  (10,608)  (10,970)  (10,449)  (10,267)
Loans, net  952,611   937,619   926,060   882,549   859,541 
Loans held for sale, at fair value  2,697   853   1,857   3,900   1,839 
Bank owned life insurance  38,578   38,333   38,090   37,764   37,541 
Premises and equipment, net  20,696   19,709   23,911   24,027   24,241 
Goodwill  32,377   32,377   32,377   32,199   32,199 
Other intangible assets, net  3,071   3,241   3,414   3,612   3,809 
Mortgage servicing rights  2,977   3,158   3,368   3,514   3,652 
Real estate owned, net  428   928   934   934   934 
Other assets  29,684   28,988   29,459   25,148   24,198 
Total assets $1,553,217  $1,561,672  $1,557,586  $1,539,340  $1,520,817 
                     
Liabilities and Stockholders’ Equity                    
Liabilities:                    
Deposits:                    
Non-interest-bearing demand  364,386   367,103   395,046   382,410   421,971 
Money market and checking  583,315   613,613   586,651   606,474   588,366 
Savings  154,000   152,381   157,112   160,426   169,504 
Certificates of deposit  191,823   183,154   169,225   131,661   114,189 
Total deposits  1,293,524   1,316,251   1,308,034   1,280,971   1,294,030 
FHLB and other borrowings  74,716   64,662   74,567   76,185   37,804 
Subordinated debentures  21,651   21,651   21,651   21,651   21,651 
Repurchase agreements  15,895   12,714   20,592   22,293   28,750 
Accrued interest and other liabilities  20,760   19,480   23,185   20,887   20,864 
Total liabilities  1,426,546   1,434,758   1,448,029   1,421,987   1,403,099 
Stockholders’ equity:                    
Common stock  55   55   52   52   52 
Additional paid-in capital  89,364   89,208   84,568   84,475   84,413 
Retained earnings  55,912   54,282   57,280   55,498   53,231 
Treasury stock, at cost  (249)  (75)  -   -   - 
Accumulated other comprehensive (loss) income  (18,411)  (16,556)  (32,343)  (22,672)  (19,978)
Total stockholders’ equity  126,671   126,914   109,557   117,353   117,718 
Total liabilities and stockholders’ equity $1,553,217  $1,561,672  $1,557,586  $1,539,340  $1,520,817 


LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)

(Dollars in thousands, except per share amounts) Three months ended, 
  March 31,  December 31,  March 31, 
  2024  2023  2023 
Interest income:            
Loans $14,490  $14,223  $11,376 
Investment securities:            
Taxable  2,428   2,453   2,317 
Tax-exempt  764   761   786 
Interest-bearing deposits at banks  63   49   98 
Total interest income  17,745   17,486   14,577 
Interest expense:            
Deposits  5,457   4,879   2,539 
FHLB and other borrowings  1,022   1,203   567 
Subordinated debentures  412   422   364 
Repurchase agreements  107   96   160 
Total interest expense  6,998   6,600   3,630 
Net interest income  10,747   10,886   10,947 
Provision for credit losses  300   50   49 
Net interest income after provision for credit losses  10,447   10,836   10,898 
Non-interest income:            
Fees and service charges  2,461   2,763   2,358 
Gains on sales of loans, net  512   255   693 
Bank owned life insurance  245   242   218 
Losses on sales of investment securities, net  -   (1,246)  - 
Other  182   240   226 
Total non-interest income  3,400   2,254   3,495 
Non-interest expense:            
Compensation and benefits  5,532   5,756   5,542 
Occupancy and equipment  1,390   1,429   1,369 
Data processing  481   462   589 
Amortization of mortgage servicing rights and other intangibles  412   437   461 
Professional fees  647   730   491 
Other  2,089   1,748   1,891 
Total non-interest expense  10,551   10,562   10,343 
Earnings before income taxes  3,296   2,528   4,050 
Income tax expense  518   (111)  693 
Net earnings $2,778  $2,639  $3,357 
             
Net earnings per share (1)            
Basic $0.51  $0.48  $0.61 
Diluted  0.51   0.48   0.61 
Dividends per share (1)  0.21   0.20   0.20 
Shares outstanding at end of period (1)  5,473,867   5,477,595   5,476,354 
Weighted average common shares outstanding - basic (1)  5,469,954   5,481,119   5,473,781 
Weighted average common shares outstanding - diluted (1)  5,474,852   5,481,119   5,481,722 
             
Tax equivalent net interest income $10,925  $11,017  $11,144 

(1) Share and per share values at or for the period ended March 31, 2023 have been adjusted to give effect to the 5% stock dividend paid during December 2023.


LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)

  As of or for the 
(Dollars in thousands, except per share amounts) three months ended, 
  March 31,  December 31,  March 31, 
  2024  2023  2023 
Performance ratios:            
Return on average assets (1)  0.72%  0.67%  0.90%
Return on average equity (1)  8.88%  9.39%  12.04%
Net interest margin (1)(2)  3.12%  3.11%  3.31%
Effective tax rate  15.7%  -4.4%  17.1%
Efficiency ratio (3)  73.0%  71.9%  70.1%
Non-interest income to total income (3)  24.1%  24.3%  24.2%
             
Average balances:            
Investment securities $456,933  $463,763  $499,538 
Loans  945,737   934,333   850,331 
Assets  1,555,662   1,555,742   1,511,077 
Interest-bearing deposits  935,417   910,610   872,900 
FHLB and other borrowings  72,618   84,408   45,217 
Subordinated debentures  21,651   21,651   21,651 
Repurchase agreements  14,371   13,785   27,548 
Stockholders’ equity $125,846  $111,560  $113,115 
             
Average tax equivalent yield/cost (1):            
Investment securities  2.96%  2.86%  2.68%
Loans  6.16%  6.04%  5.43%
Total interest-bearing assets  5.11%  4.97%  4.39%
Interest-bearing deposits  2.35%  2.13%  1.18%
FHLB and other borrowings  5.66%  5.65%  5.09%
Subordinated debentures  7.65%  7.73%  6.82%
Repurchase agreements  2.99%  2.79%  2.36%
Total interest-bearing liabilities  2.70%  2.54%  1.52%
             
Capital ratios:            
Equity to total assets  8.16%  8.13%  7.74%
Tangible equity to tangible assets (3)  6.01%  5.98%  5.50%
Book value per share $23.14  $23.17  $21.50 
Tangible book value per share (3) $16.67  $16.67  $14.92 
             
Rollforward of allowance for credit losses (loans):            
Beginning balance $10,608  $10,970  $8,791 
Adoption of CECL  -   -   1,523 
Charge-offs  (141)  (442)  (108)
Recoveries  134   80   61 
Provision for credit losses for loans  250   -   - 
Ending balance $10,851  $10,608  $10,267 
             
Allowance for unfunded loan commitments $300  $250  $200 
             
Non-performing assets:            
Non-accrual loans $3,621  $2,391  $3,311 
Accruing loans over 90 days past due  -   -   - 
Real estate owned  428   928   934 
Total non-performing assets $4,049  $3,319  $4,245 
             
Loans 30-89 days delinquent $4,064  $1,582  $1,490 
             
Other ratios:            
Loans to deposits  73.64%  71.23%  66.42%
Loans 30-89 days delinquent and still accruing to gross loans outstanding  0.42%  0.17%  0.17%
Total non-performing loans to gross loans outstanding  0.38%  0.25%  0.38%
Total non-performing assets to total assets  0.26%  0.21%  0.28%
Allowance for credit losses to gross loans outstanding  1.13%  1.12%  1.18%
Allowance for credit losses to total non-performing loans  299.67%  443.66%  310.09%
Net loan charge-offs to average loans (1)  0.00%  0.15%  0.02%

(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 
(Dollars in thousands, except per share amounts) three months ended, 
  March 31,  December 31,  March 31, 
  2024  2023  2023 
          
Non-GAAP financial ratio reconciliation:            
Total non-interest expense $10,551  $10,562  $10,343 
Less: foreclosure and real estate owned expense  (50)  (40)  (17)
Less: amortization of other intangibles  (170)  (174)  (197)
Less: acquisition costs  -   -   - 
Adjusted non-interest expense (A)  10,331   10,348   10,129 
             
Net interest income (B)  10,747   10,886   10,947 
             
Non-interest income  3,400   2,254   3,495 
Less: losses (gains) on sales of investment securities, net  -   1,246   - 
Less: gains on sales of premises and equipment and foreclosed assets  9   -   (1)
Adjusted non-interest income (C) $3,409  $3,500  $3,494 
             
Efficiency ratio (A/(B+C))  73.0%  71.9%  70.1%
Non-interest income to total income (C/(B+C))  24.1%  24.3%  24.2%
             
Total stockholders’ equity $126,671  $126,914  $117,718 
Less: goodwill and other intangible assets  (35,448)  (35,618)  (36,008)
Tangible equity (D) $91,223  $91,296  $81,710 
             
Total assets $1,553,217  $1,561,672  $1,520,817 
Less: goodwill and other intangible assets  (35,448)  (35,618)  (36,008)
Tangible assets (E) $1,517,769  $1,526,054  $1,484,809 
             
Tangible equity to tangible assets (D/E)  6.01%  5.98%  5.50%
             
Shares outstanding at end of period (F)  5,473,867   5,477,595   5,476,354 
             
Tangible book value per share (D/F) $16.67  $16.67  $14.92 


FAQ

What were Landmark Bancorp's diluted earnings per share for the first quarter of 2024?

Landmark Bancorp reported diluted earnings per share of $0.51 for the first quarter of 2024.

What was the net earnings for Landmark Bancorp in the first quarter of 2024?

Net earnings for Landmark Bancorp in the first quarter of 2024 amounted to $2.8 million.

What was Landmark Bancorp's return on average assets in the first quarter of 2024?

Landmark Bancorp's return on average assets was 0.72% in the first quarter of 2024.

When is Landmark Bancorp's cash dividend of $0.21 per share payable?

Landmark Bancorp's cash dividend of $0.21 per share will be paid on May 29, 2024.

How did Landmark Bancorp's non-interest income change in the first quarter of 2024?

Landmark Bancorp's non-interest income increased by $1.1 million in the first quarter of 2024.

Landmark Bancorp Inc

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