Landmark Bancorp Inc.NASDAQ: LARK

Landmark Bancorp, Inc. Announces Growth in First Quarter 2025 Net Earnings of 43.2%. Declares Cash Dividend of $0.21 per Share

· Issued by Landmark Bancorp Inc. via GlobeNewswire

Manhattan, KS, April 30, 2025 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.81 for the three months ended March 31, 2025, compared to $0.57 per share in the fourth quarter of 2024 and $0.48 per share in the same quarter last year. Net income for the first quarter totaled $4.7 million, compared to $3.3 million in the prior quarter and $2.8 million in the first quarter of 2024. For the three months ended March 31, 2025, the return on average assets was 1.21%, the return on average equity was 13.71% and the efficiency ratio(1) was 64.1%.

First Quarter 2025 Performance Highlights

  • Loan growth totaled $22.6 million or an annualized increase of 8.7% over the prior quarter.

  • Net interest margin improved 25 basis points to 3.76% compared to 3.51% in prior quarter.

  • Deposits increased $42.3 million, or 3.3%, from the same quarter last year and $7.1 million, or 2.2%, from prior quarter.

  • Other borrowed funds decreased $11.8 million compared to the prior quarter.

  • Non-interest expenses declined $1.1 million compared to the prior quarter.

  • Credit quality remained stable with net charge-offs totaling $23,000 in the first quarter.

  • Ratio of equity to assets increased to 9.04% this quarter.

In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “I am pleased to report strong growth in net income this quarter driven by growth in net interest income, lower expenses and excellent credit quality. We continued to experience solid loan demand in the first quarter 2025, especially for commercial real estate and residential mortgage loans. In the first quarter 2025, total gross loans increased by $22.6 million or 8.7% (annualized) with growth in most loan categories. Total deposits also increased in the first quarter by $7.1 million, exceeding the typical seasonal decline in money market and interest checking accounts. Over the last two quarters, deposits have increased over $60 million. Other borrowed funds declined by $11.8 million, which reduced interest expense and improved our net interest margin. Growth in our balance sheet, plus the shift in our funding position led to net interest income growth of 22.1% over the previous year and net interest margin expansion of 25 basis points to 3.76%. Non-interest expense also declined this quarter by $1.1 million compared to the prior quarter. Credit quality remained solid overall with minimal net charge-offs, and no provision for credit losses was taken this quarter. These strong results are a tribute to the associates who work hard every day to make Landmark the bank of choice for our customers and stockholders.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid June 4, 2025, to common stockholders of record as of the close of business on May 21, 2025.

Management will host a conference call to discuss the Company’s financial results at 9:30 a.m. (Central time) on Thursday, May 1, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 866149. A replay of the call will be available through May 8, 2025, by dialing (866) 813-9403 and using access code 282640.

Net Interest Income

Net interest income in the first quarter of 2025 amounted to $13.1 million representing an increase of $720,000, or 5.8%, compared to the previous quarter. The increase in net interest income resulted from a combination of both higher interest income on loans and lower interest expense on deposits and other borrowed funds (FHLB, repurchase agreements and other debt). Net interest margin increased to 3.76% during the first quarter from 3.51% during the prior quarter. Compared to the previous quarter, interest income on loans increased $440,000 to $16.4 million due to higher average balances combined with higher yields on loans. Average loan balances increased $38.4 million, while the average tax-equivalent yield on the loan portfolio increased 6 basis points to 6.34%. Interest on investment securities declined slightly due to lower balances, partially offset by higher earning rates. Compared to the fourth quarter of 2024, interest on deposits decreased $114,000, or 2.1%, due to lower rates as average interest-bearing deposit balances increased by $34.8 million. Interest on other borrowed funds declined by $216,000, due to lower rates and average balances. The average rate on interest-bearing deposits decreased 8 basis points to 2.17% while the average rate on other borrowed funds decreased 15 basis points to 5.09% in the first quarter.

Non-Interest Income

Non-interest income totaled $3.4 million for the first quarter of 2025, a decrease of $13,000 from the previous quarter. The decrease in non-interest income during the first quarter of 2025 was primarily due to a $704,000 decline in bank owned life insurance income relating to one-time benefits recorded in the fourth quarter, coupled with a $322,000 decline in fees and service charges relating to lower deposit related fee income, partially due to fewer days in the quarter. Partially offsetting those declines was a $1.0 million loss on the sales of lower yielding investment securities in the fourth quarter of 2024, compared to a loss of only $2,000 in the first quarter of 2025.

(1) Non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation.

Non-Interest Expense

During the first quarter of 2025, non-interest expense totaled $10.8 million, a decrease of $1.1 million compared to the prior quarter. The decrease in non-interest expense was primarily due to decreases of $350,000 in other non-interest expense, $298,000 in occupancy and equipment and $298,000 in professional fees. The decreases in other non-interest expenses and occupancy and equipment were primarily related to branch closures in 2024 and associated cost savings in 2025. The decrease in professional fees this quarter was primarily due to higher consulting costs in the prior quarter related to several initiatives.

Income Tax Expense (Benefit)

Landmark recorded income tax expense of $1.0 million in the first quarter of 2025 compared to an income tax benefit of $886,000 in the fourth quarter of 2024. The effective tax rate was 17.8% in the first quarter of 2025. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which significantly reduced the effective tax rate.

Balance Sheet Highlights

As of March 31, 2025, gross loans totaled $1.1 billion, an increase of $22.6 million, or 8.7% annualized since December 31, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $14.4 million), one-to-four family residential real estate (growth of $3.4 million) and construction and land loans (growth of $3.3 million). Investment securities decreased $16.5 million during the first quarter of 2025 mainly due to maturities. Pre-tax unrealized net losses on the investment securities portfolio decreased from $20.9 million at December 31, 2024, to $17.1 million at March 31, 2025, mainly due to lower market rates for these securities at March 31, 2025.

Period end deposit balances increased $7.1 million to $1.3 billion at March 31, 2025. The increase in deposits was driven by increases in non-interest-bearing demand deposits (increase of $16.9 million), certificates of deposit (increase of $10.0 million) and savings (increase of $3.7 million), partially offset by a decline in money market and checking accounts (decrease of $23.5 million). The decrease in money market and checking accounts was mainly driven by a seasonal decline in public fund deposit account balances. Total borrowings decreased $11.8 million during the first quarter 2025. At March 31, 2025, the loan to deposits ratio was 79.5% compared to 78.2% in the prior quarter.

Stockholders’ equity increased to $142.7 million (book value of $24.69 per share) as of March 31, 2025, from $136.2 million (book value of $23.59 per share) as of December 31, 2024. 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 from the quarter. The ratio of equity to total assets increased to 9.04% on March 31, 2025, from 8.65% on December 31, 2024.

The allowance for credit losses totaled $12.8 million, or 1.19% of total gross loans on March 31, 2025, compared to $12.8 million, or 1.22% of total gross loans on December 31, 2024. Net loan charge-offs totaled $23,000 in the first quarter of 2025, compared to $219,000 during the fourth quarter of 2024. No provision for credit losses on loans was recorded in the first quarter of 2025 compared to a provision of $1.5 million recorded in the fourth quarter of 2024.

Non-performing loans totaled $13.3 million, or 1.24% of gross loans, at March 31, 2025, compared to $13.1 million, or 1.25% of gross loans, at December 31, 2024. Loans 30-89 days delinquent totaled $10.0 million, or 0.93% of gross loans, as of March 31, 2025, compared to $6.2 million, or 0.59% of gross loans, as of December 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 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) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such laws, regulations and policies; (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) effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, foreign policy and tax regulations; (x) the economic 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) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (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 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; (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, concentration large loans to certain borrowers, and large deposits from certain clients (including commercial real estate loans); (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) 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; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxvi) the Company’s success at managing and responding to the risks involved in the foregoing items; and (xxvii) 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,

2025

2024

2024

2024

2024

Assets

Cash and cash equivalents

$

21,881

$

20,275

$

21,211

$

23,889

$

16,468

Interest-bearing deposits at other banks

3,973

4,110

4,363

4,881

4,920

Investment securities available-for-sale, at fair value:

U.S. treasury securities

58,424

64,458

83,753

89,325

93,683

Municipal obligations, tax exempt

101,812

107,128

112,126

114,047

118,445

Municipal obligations, taxable

70,614

71,715

75,129

74,588

75,371

Agency mortgage-backed securities

125,142

129,211

140,004

142,499

149,777

Total investment securities available-for-sale

355,992

372,512

411,012

420,459

437,276

Investment securities held-to-maturity

3,701

3,672

3,643

3,613

3,584

Bank stocks, at cost

6,225

6,618

7,894

9,647

7,850

Loans:

One-to-four family residential real estate

355,632

352,209

344,380

332,090

312,833

Construction and land

28,645

25,328

23,454

30,480

24,823

Commercial real estate

359,579

345,159

324,016

318,850

323,397

Commercial

190,881

192,325

181,652

178,876

181,945

Agriculture

101,808

100,562

91,986

84,523

86,808

Municipal

7,082

7,091

7,098

6,556

5,690

Consumer

31,297

29,679

29,263

29,200

28,544

Total gross loans

1,074,924

1,052,353

1,001,849

980,575

964,040

Net deferred loan (fees) costs and loans in process

(426

)

(307

)

(63

)

(583

)

(578

)

Allowance for credit losses

(12,802

)

(12,825

)

(11,544

)

(10,903

)

(10,851

)

Loans, net

1,061,696

1,039,221

990,242

969,089

952,611

Loans held for sale, at fair value

2,997

3,420

3,250

2,513

2,697

Bank owned life insurance

39,329

39,056

39,176

38,826

38,578

Premises and equipment, net

19,886

20,220

20,976

20,986

20,696

Goodwill

32,377

32,377

32,377

32,377

32,377

Other intangible assets, net

2,426

2,578

2,729

2,900

3,071

Mortgage servicing rights

3,045

3,061

3,041

2,997

2,977

Real estate owned, net

167

167

428

428

428

Other assets

24,894

26,855

23,309

28,149

29,684

Total assets

$

1,578,589

$

1,574,142

$

1,563,651

$

1,560,754

$

1,553,217

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Non-interest-bearing demand

368,480

351,595

360,188

360,631

364,386

Money market and checking

613,459

636,963

565,629

546,385

583,315

Savings

149,223

145,514

145,825

150,996

154,000

Certificates of deposit

204,660

194,694

203,860

192,470

191,823

Total deposits

1,335,822

1,328,766

1,275,502

1,250,482

1,293,524

FHLB and other borrowings

48,767

53,046

92,050

131,330

74,716

Subordinated debentures

21,651

21,651

21,651

21,651

21,651

Repurchase agreements

6,256

13,808

9,528

8,745

15,895

Accrued interest and other liabilities

23,442

20,656

25,229

20,292

20,760

Total liabilities

1,435,938

1,437,927

1,423,960

1,432,500

1,426,546

Stockholders' equity:

Common stock

58

58

55

55

55

Additional paid-in capital

95,148

95,051

89,532

89,469

89,364

Retained earnings

60,422

56,934

60,549

57,774

55,912

Treasury stock, at cost

-

-

(396

)

(330

)

(249

)

Accumulated other comprehensive loss

(12,977

)

(15,828

)

(10,049

)

(18,714

)

(18,411

)

Total stockholders' equity

142,651

136,215

139,691

128,254

126,671

Total liabilities and stockholders' equity

$

1,578,589

$

1,574,142

$

1,563,651

$

1,560,754

$

1,553,217

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,

2025

2024

2024

Interest income:

Loans

$

16,395

$

15,955

$

14,490

Investment securities:

Taxable

2,180

2,210

2,428

Tax-exempt

719

738

764

Interest-bearing deposits at banks

48

49

63

Total interest income

19,342

18,952

17,745

Interest expense:

Deposits

5,236

5,350

5,457

FHLB and other borrowings

565

737

1,022

Subordinated debentures

357

389

412

Repurchase agreements

65

77

107

Total interest expense

6,223

6,553

6,998

Net interest income

13,119

12,399

10,747

Provision for credit losses

-

1,500

300

Net interest income after provision for credit losses

13,119

10,899

10,447

Non-interest income:

Fees and service charges

2,388

2,710

2,461

Gains on sales of loans, net

562

522

512

Bank owned life insurance

272

976

245

Losses on sales of investment securities, net

(2

)

(1,031

)

-

Other

138

194

182

Total non-interest income

3,358

3,371

3,400

Non-interest expense:

Compensation and benefits

6,154

6,264

5,532

Occupancy and equipment

1,252

1,550

1,390

Data processing

396

452

481

Amortization of mortgage servicing rights and other intangibles

239

240

412

Professional fees

745

1,043

647

Valuation allowance on real estate held for sale

-

-

129

Other

1,975

2,325

1,960

Total non-interest expense

10,761

11,874

10,551

Earnings before income taxes

5,716

2,396

3,296

Income tax expense (benefit)

1,015

(886

)

518

Net earnings

$

4,701

$

3,282

$

2,778

Net earnings per share (1)

Basic

$

0.81

$

0.57

$

0.48

Diluted

0.81

0.57

0.48

Dividends per share (1)

0.21

0.20

0.20

Shares outstanding at end of period (1)

5,778,610

5,775,198

5,747,560

Weighted average common shares outstanding - basic (1)

5,777,593

5,775,227

5,743,452

Weighted average common shares outstanding - diluted (1)

5,814,650

5,789,764

5,748,595

Tax equivalent net interest income

$

13,291

$

12,574

$

10,925

(1) Share and per share values at or for the periods ended March 31, 2024 and December 31, 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)

(Dollars in thousands, except per share amounts)

As of or for the
three months ended,

March 31,

December 31,

March 31,

2025

2024

2024

Performance ratios:

Return on average assets (1)

1.21

%

0.83

%

0.72

%

Return on average equity (1)

13.71

%

9.54

%

8.88

%

Net interest margin (1)(2)

3.76

%

3.51

%

3.12

%

Effective tax rate

17.8

%

-37.0

%

15.7

%

Efficiency ratio (3)

64.1

%

70.8

%

72.1

%

Non-interest income to total income (3)

20.4

%

25.0

%

24.1

%

Average balances:

Investment securities

$

377,845

$

409,648

$

456,933

Loans

1,048,585

1,010,153

945,737

Assets

1,574,295

1,568,821

1,555,662

Interest-bearing deposits

979,787

944,969

935,417

FHLB and other borrowings

48,428

57,507

72,618

Subordinated debentures

21,651

21,651

21,651

Repurchase agreements

8,634

12,212

14,371

Stockholders' equity

$

139,068

$

136,933

$

125,846

Average tax equivalent yield/cost (1):

Investment securities

3.29

%

3.03

%

2.96

%

Loans

6.34

%

6.28

%

6.16

%

Total interest-bearing assets

5.53

%

5.34

%

5.11

%

Interest-bearing deposits

2.17

%

2.25

%

2.35

%

FHLB and other borrowings

4.73

%

5.10

%

5.66

%

Subordinated debentures

6.69

%

7.15

%

7.65

%

Repurchase agreements

3.05

%

2.51

%

2.99

%

Total interest-bearing liabilities

2.38

%

2.52

%

2.70

%

Capital ratios:

Equity to total assets

9.04

%

8.65

%

8.16

%

Tangible equity to tangible assets (3)

6.99

%

6.58

%

6.01

%

Book value per share

$

24.69

$

23.59

$

22.04

Tangible book value per share (3)

$

18.66

$

17.53

$

15.87

Rollforward of allowance for credit losses (loans):

Beginning balance

$

12,825

$

11,544

$

10,608

Charge-offs

(108

)

(246

)

(141

)

Recoveries

85

27

134

Provision for credit losses for loans

—

1,500

250

Ending balance

$

12,802

$

12,825

$

10,851

Allowance for unfunded loan commitments

$

150

$

150

$

300

Non-performing assets:

Non-accrual loans

$

13,280

$

13,115

$

3,621

Accruing loans over 90 days past due

—

—

—

Real estate owned

167

167

428

Total non-performing assets

$

13,447

$

13,282

$

4,049

Loans 30-89 days delinquent

$

9,977

$

6,201

$

4,064

Other ratios:

Loans to deposits

79.48

%

78.21

%

73.64

%

Loans 30-89 days delinquent and still accruing to gross loans outstanding

0.93

%

0.59

%

0.42

%

Total non-performing loans to gross loans outstanding

1.24

%

1.25

%

0.38

%

Total non-performing assets to total assets

0.85

%

0.84

%

0.26

%

Allowance for credit losses to gross loans outstanding

1.19

%

1.22

%

1.13

%

Allowance for credit losses to total non-performing loans

96.40

%

97.79

%

299.67

%

Net loan charge-offs to average loans (1)

0.01

%

0.09

%

0.00

%

(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)

(Dollars in thousands, except per share amounts)

As of or for the
three months ended,

March 31,

December 31,

March 31,

2025

2024

2024

Non-GAAP financial ratio reconciliation:

Total non-interest expense

$

10,761

$

11,874

$

10,551

Less: foreclosure and real estate owned expense

(50

)

(13

)

(50

)

Less: amortization of other intangibles

(152

)

(151

)

(170

)

Less: valuation allowance on real estate held for sale

—

—

(129

)

Adjusted non-interest expense (A)

10,559

11,710

10,202

Net interest income (B)

13,119

12,399

10,747

Non-interest income

3,358

3,371

3,400

Less: losses on sales of investment securities, net

2

1,031

—

Less: gains on sales of premises and equipment and foreclosed assets

—

(273

)

9

Adjusted non-interest income (C)

$

3,360

$

4,129

$

3,409

Efficiency ratio (A/(B+C))

64.1

%

70.8

%

72.1

%

Non-interest income to total income (C/(B+C))

20.4

%

25.0

%

24.1

%

Total stockholders' equity

$

142,651

$

136,215

$

126,671

Less: goodwill and other intangible assets

(34,803

)

(34,955

)

(35,448

)

Tangible equity (D)

$

107,848

$

101,260

$

91,223

Total assets

$

1,578,589

$

1,574,142

$

1,553,217

Less: goodwill and other intangible assets

(34,803

)

(34,955

)

(35,448

)

Tangible assets (E)

$

1,543,786

$

1,539,187

$

1,517,769

Tangible equity to tangible assets (D/E)

6.99

%

6.58

%

6.01

%

Shares outstanding at end of period (F)

5,778,610

5,775,198

5,747,560

Tangible book value per share (D/F)

$

18.66

$

17.53

$

15.87