Landmark Bancorp, Inc. Announces Second Quarter 2025 Earnings per Share of $0.75 Declares Cash Dividend of $0.21 per Share

Rhea-AI Summary

Landmark Bancorp (NASDAQ:LARK) reported strong Q2 2025 financial results with diluted earnings per share of $0.75, compared to $0.81 in Q1 2025 and $0.52 in Q2 2024. The company achieved net earnings of $4.4 million and declared a cash dividend of $0.21 per share.

Key highlights include a 16% annualized increase in total gross loans ($42.9 million growth), improved net interest margin of 3.83% (up from 3.76% in Q1), and a 24.7% year-over-year increase in net interest income. While deposits decreased $61.9 million from the previous quarter, they showed a 1.9% year-over-year growth. The company maintained stable credit quality with minimal net charge-offs of $40,000.

[ "Net interest income increased 24.7% year-over-year to $13.7 million", "Strong loan growth of 16% annualized ($42.9 million increase) in Q2", "Net interest margin improved to 3.83% from 3.76% in Q1", "Year-over-year deposit growth of 1.9% ($23.4 million)", "Stockholders' equity increased by $5.7 million with improved equity-to-assets ratio of 9.13%" ]

Positive

• None.

Negative

• Quarter-over-quarter decline in deposits of $61.9 million
• Non-performing loans increased to 1.52% of gross loans from 1.24% in Q1
• Net earnings decreased to $4.4 million from $4.7 million in Q1 2025
• Required $1.0 million provision for credit losses due to loan growth and higher non-performing loans

Insights

Banking Financial Analyst

Landmark's Q2 earnings show strong loan growth and improving margins, though deposit challenges and rising non-performing loans warrant attention.

Landmark Bancorp delivered $0.75 EPS in Q2 2025, down from $0.81 in Q1 but up significantly from $0.52 in Q2 2024. The 44.2% year-over-year EPS growth highlights substantial improvement in the bank's operational performance.

The standout metric is the impressive loan growth of $42.9 million or 16.0% annualized, primarily in residential real estate, commercial, and commercial real estate segments. This robust loan expansion drove net interest income up 4.3% quarter-over-quarter and 24.7% year-over-year.

The net interest margin improvement to 3.83% from 3.76% in Q1 and 3.25% a year ago reflects effective asset-liability management in a complex rate environment. The bank is successfully increasing loan yields while managing deposit costs, with interest-bearing deposit rates declining 3 basis points to 2.14%.

However, two concerns emerge: First, deposits declined $61.9 million quarter-over-quarter, forcing reliance on higher-cost borrowings which increased $105.9 million. The loan-to-deposit ratio jumped to 86.6% from 79.5%, potentially pressuring future margins if deposit gathering remains challenging.

Second, asset quality shows early warning signs with non-performing loans increasing to $17.0 million or 1.52% of gross loans (up from 1.24% in Q1). While 30-89 day delinquencies improved, the bank increased its provision for credit losses to $1.0 million compared to no provision in Q1.

The efficiency ratio of 62.8% indicates reasonable cost control, and the 12.25% return on equity demonstrates strong profitability. The quarterly dividend of $0.21 per share provides shareholders with ongoing returns while the bank maintains adequate capital with equity-to-assets at 9.13%.

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

FAQ

What was Landmark Bancorp's (LARK) earnings per share in Q2 2025?

Landmark reported diluted earnings per share of $0.75 in Q2 2025, compared to $0.81 in Q1 2025 and $0.52 in Q2 2024.

How much did Landmark Bancorp's loan portfolio grow in Q2 2025?

Landmark's gross loans increased by $42.9 million, representing a 16% annualized growth rate compared to the previous quarter.

What dividend did LARK declare for Q2 2025?

Landmark's Board declared a cash dividend of $0.21 per share, payable on August 27, 2025, to stockholders of record as of August 13, 2025.

How did Landmark's net interest margin perform in Q2 2025?

The net interest margin improved to 3.83%, up from 3.76% in the previous quarter and 3.25% in Q2 2024.

What was LARK's deposit performance in Q2 2025?

Deposits decreased by $61.9 million from the previous quarter but showed a year-over-year growth of $23.4 million (1.9%).

How did Landmark's credit quality perform in Q2 2025?

Credit quality showed mixed results with net charge-offs of $40,000 and non-performing loans increasing to 1.52% of gross loans from 1.24% in Q1 2025.