Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted
earnings per share of $0.50 for the three months ended September
30, 2022, compared to $0.61 per share in the second quarter of 2022
and $0.90 per share in the same quarter last year. Net earnings for
the third quarter of 2022 amounted to $2.5 million, compared to
$3.0 million in the prior quarter and $4.5 million for the third
quarter of 2021. For the three months ended September 30, 2022, the
return on average assets was 0.76%, the return on average equity
was 8.33%, and the efficiency ratio was 69.6%. The previously
announced acquisition of Freedom Bancshares, Inc. was completed
prior to the opening of business on October 1, 2022 and their
financial information is not included in Landmark’s third quarter
results.
For the first nine months of 2022, diluted
earnings per share totaled $1.73 compared to $2.97 during the same
period of 2021. Net earnings for the first nine months of 2022
amounted to $8.7 million, compared to $14.9 million in the first
nine months of 2021. For the nine months ended September 30, 2022,
the return on average assets was 0.89% and the return on average
equity was 9.33%.
In making this announcement, Michael E.
Scheopner, President and Chief Executive Officer of Landmark, said,
“This quarter’s loan growth remained robust, and we experienced
solid growth in net interest income over the prior quarter.
Compared to the second quarter 2022, total gross loans increased by
$41.4 million, or 24.5% on an annualized basis, as a result of
greater demand for residential and commercial real estate loans and
commercial and agricultural loans. Net interest income also grew by
24.7% on an annualized basis compared to the prior quarter due to
higher loan and investment balances and higher rates, which were
partially offset by higher deposit rates and borrowing costs. Our
net interest margin increased to 3.21%. Non-interest income
declined $1.9 million compared to the same period last year mostly
the result of lower gains on sales of residential mortgage loans
while fees and service charges increased 10.7%. We also recorded a
$353,000 loss on sale of lower yielding investment securities that
we had strategically sold this quarter. Non-interest expense
totaled $9.5 million in the third quarter 2022 and was mostly flat
with the third quarter last year and included $134,000 in costs
associated with the acquisition of Freedom Bancshares, Inc. Total
deposits declined slightly this quarter but have increased by $50.5
million, or 4.7% as compared to September 30, 2021.”
Mr. Scheopner continued, “Credit quality remains
very strong and non-accrual loans and delinquencies continue to
decline. Landmark recorded net loan recoveries of $43,000 in the
third quarter of 2022 compared to net loan charge-offs of $42,000
in the prior quarter and $397,000 in the third quarter of 2021.
Non-accrual loans totaled $4.8 million or 0.68% of gross loans at
September 30, 2022 and have declined $5.0 million over the last
twelve months. Also, the balance of loans past due 30 to 89 days
remained low. The allowance for loan losses totaled $8.9 million at
September 30, 2022, or 1.25% of period end loans and we recorded a
provision for loan losses of $500,000 this quarter primarily due to
the increased loan balances. Our equity to assets ratio totaled
7.78% while loans to deposits totaled 62.9%.”
Total assets at September 30, 2022 were $1.4
billion, total gross loans were $711.3 million and total deposits
were $1.1 billion. On October 1, 2022, Landmark completed the
acquisition Freedom Bancshares, Inc., a one-bank holding company
with gross loans of $118.0 million and deposits of $150.4 million.
Freedom Bank is located in Overland Park, Kansas and will expand
Landmark’s presence in the Kansas City market.
Landmark’s Board of Directors declared a cash
dividend of $0.21 per share, to be paid November 30, 2022, to
common stockholders of record as of the close of business on
November 16, 2022. The Board of Directors also declared a 5% stock
dividend payable on December 16, 2022, to common stockholders of
record on December 2, 2022. This is the 22nd consecutive year that
the Board has declared a 5% stock dividend. During the quarter the
Company purchased 20,706 shares of treasury stock.
Management will host a conference call to
discuss the Company’s financial results at 10:00 a.m. (Central
time) on Thursday, November 3, 2022. Investors may participate via
telephone by dialing (844) 200-6205 and using access code 523774. A
replay of the call will be available through December 3, 2022, by
dialing (866) 813-9403 and using access code 414179.
SUMMARY OF
THIRD QUARTER RESULTS
Net Interest Income
Net interest income amounted to $9.5 million for
the three months ended September 30, 2022, compared to $9.6 million
in the same period last year and $8.9 million in the second quarter
of 2022. The decrease of $162,000, or 1.7%, from the third quarter
of 2021 was primarily the result of a decrease in interest on loans
of $436,000 or 5.2% due mainly to lower interest and fees earned on
PPP loans which declined by $1.6 million from the third quarter
2021 and carried higher average rates. Net interest income,
however, increased $553,000 from the second quarter 2022 due mainly
to loan growth and higher yields on loans and investment
securities. Average loan balances totaled $687.7 million in the
third quarter of 2022 compared to $668.0 million in the third
quarter of 2021 and $653.0 million in the second quarter of 2022.
The average tax-equivalent yield on the loan portfolio was 4.63% in
the third quarter of 2022 compared to 5.03% in the same quarter
last year and 4.40% in the prior quarter. Interest costs on
interest-bearing deposits totaled 0.39% in the third quarter of
2022, 0.13% in the third quarter of 2021 and 0.18% in the prior
quarter. On a tax-equivalent basis, the net interest margin totaled
3.21% in the third quarter of 2022, compared to 3.05% in the prior
quarter and 3.36% in the third quarter of 2021.
Non-Interest Income
Non-interest income totaled $3.5 million for the
third quarter of 2022, a decrease of $1.9 million, or 35.4%,
compared to the same period last year and $267,000, or 7.0%, from
the previous quarter. The decrease in non-interest income during
the third quarter of 2022 compared to the same period last year was
primarily due to a decrease of $1.6 million in gains on sales of
one-to-four family residential real estate loans as higher interest
rates and low housing inventories reduced originations of these
fixed rate loans which are normally sold. Higher mortgage rates
however resulted in an increase in originations of adjustable-rate
loans this quarter which are kept in the Company’s loan portfolio.
Fees and service charges increased $243,000, or 10.7%, over the
same period last year and increased $131,000 compared to the prior
quarter mainly due to increased deposit-related income. A loss of
$353,000 was recorded in the third quarter of 2022 on the sale of
certain low yielding investment securities in our portfolio.
Non-Interest Expense
During the third quarter of 2022, non-interest
expense totaled $9.5 million, a slight increase over the same
period last year and $436,000, or 4.8% higher than in the prior
quarter. Compared to the same quarter last year, higher costs for
occupancy and equipment and acquisition costs were offset by lower
compensation, data processing and intangible amortization expense.
The increase in occupancy and equipment was related to building
maintenance costs as well as increased utilities and other building
expense. Compared to the prior quarter, non-interest expense
increased primarily due to increased costs for occupancy and
equipment and higher other non-interest expense, primarily
increased costs for software and captive insurance losses.
Income Tax Expense
Landmark recorded income tax expense of $522,000
in the third quarter of 2022 compared to $1.1 million in the third
quarter of 2021 and $639,000 in the second quarter of 2022. The
effective tax rate decreased to 17.3% in the third quarter of 2022
compared to 19.8% in the third quarter of 2021 and 17.4% in the
second quarter of 2022, primarily due to lower pretax earnings.
Balance Sheet Highlights
As of September 30, 2022, gross loans totaled
$711.3 million, an increase of $41.4 million, or 24.5% annualized,
since June 30, 2022. The growth in loans was primarily due to
increases of $18.8 million in commercial real estate, $12.9 million
in one-to-four family residential real estate, $7.9 million in
agriculture and $6.7 million in commercial loans. Investment
securities decreased $2.5 million, or 2.1% annualized, during the
third quarter of 2022 primarily due to an increase in our
unrealized losses as higher interest rates impacted the fair value
of our portfolio. Gross unrealized net losses totaled $41.0 million
at September 30, 2022 compared to $24.0 million at June 30, 2022.
Deposits decreased $14.3 million to $1.1 billion at September 30,
2022 mainly due to lower balances of investments savings, interest
checking and certificates of deposits. Other borrowings increased
by $10.1 million primarily due to $10.0 million of debt issued in
conjunction with the Freedom Bancshares, Inc. acquisition. At
September 30, 2022, the loan to deposits ratio was 62.9% compared
to 58.5% in the prior quarter and 61.6% in the same period last
year.
Stockholders’ equity decreased to $105.5 million
(book value of $21.21 per share) as of September 30, 2022, from
$117.3 million (book value of $23.57 per share) as of June 30,
2022, due mainly to an increase in other comprehensive losses and
the purchase of the Company’s common stock totaling $502,000. The
increase in other comprehensive losses this quarter resulted from
an increase in unrealized losses on the Company’s investment
securities portfolio due to the increased interest rate environment
this quarter. As a result of these items, the ratio of equity to
total assets decreased to 7.78% on September 30, 2022, from 9.08%
at June 30, 2022.
The allowance for loan losses totaled $8.9
million, or 1.25% of total gross loans (excluding PPP loans) on
September 30, 2022, compared to $8.3 million, or 1.24% of total
gross loans (excluding PPP loans) on June 30, 2022. No allowance
for loan losses has been allocated to PPP loans because they are
guaranteed by the SBA. Net loan recoveries totaled $43,000 in the
third quarter of 2022, compared to net loan charge-offs of $397,000
during the same quarter last year and $42,000 during the second
quarter of 2022. The ratio of annualized net loan charge-offs to
total average loans was (0.02%) in the third quarter of 2022, 0.24%
in the third quarter of last year and 0.03% in the prior quarter. A
$500,000 provision for loan losses was recorded in the third
quarter of 2022 primarily due to the growth in loans during the
quarter. No provision for loan losses was made in either the same
quarter last year or in the prior quarter.
During the third quarter of 2022, non-performing
loans totaled $4.8 million, or 0.68% of gross loans, while loans
30-89 days delinquent totaled $657,000, or 0.09% of gross loans, as
of September 30, 2022. Real estate owned totaled $1.3 million at
September 30, 2022.
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.
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 effects of the COVID-19 pandemic, including its effects on the
economic environment, our customers and operations, as well as
changes to federal, state or local government laws, regulations or
orders in connection with the pandemic; (ii) the strength of the
local, national and international economies; (iii) changes in state
and federal laws, regulations and governmental policies concerning
banking, securities, consumer protection, insurance, monetary,
trade and tax matters; (iv) changes in interest rates and
prepayment rates of our assets; (v) increased competition in the
financial services sector and the inability to attract new
customers; (vi) timely development and acceptance of new products
and services; (vii) changes in technology and the ability to
develop and maintain secure and reliable electronic systems; (viii)
our risk management framework; (ix) interruptions in information
technology and telecommunications systems and third-party services;
(x) changes and uncertainty in benchmark interest rates, including
the elimination of LIBOR and the development of a substitute; (xi)
the effects of severe weather, natural disasters, widespread
disease or pandemics, or other external events; (xii) the loss of
key executives or employees; (xiii) changes in consumer spending;
(xiv) integration of acquired businesses; (xv) unexpected outcomes
of existing or new litigation; (xvi) changes in accounting policies
and practices, such as the implementation of the current expected
credit losses accounting standard; (xvii) the economic impact of
armed conflict or terrorist acts involving the United States;
(xviii) the ability to manage credit risk, forecast loan losses and
maintain an adequate allowance for loan losses; (xix) declines in
the value of our investment portfolio; (xx) the ability to raise
additional capital; (xxi) cyber-attacks; (xxii) declines in real
estate values; (xxiii) the effects of fraud on the part of our
employees, customers, vendors or counterparties; and (xxiv) 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.
Contacts: |
Michael E. Scheopner |
President and Chief Executive Officer |
Mark A. Herpich |
Chief Financial Officer |
(785) 565-2000 |
LANDMARK BANCORP, INC. AND
SUBSIDIARIESConsolidated Balance Sheets
(unaudited)
(Dollars in thousands) |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
49,234 |
|
|
$ |
30,413 |
|
|
$ |
106,319 |
|
|
$ |
189,213 |
|
|
$ |
117,314 |
|
Interest-bearing deposits at other banks |
|
|
8,844 |
|
|
|
8,360 |
|
|
|
6,381 |
|
|
|
7,378 |
|
|
|
7,629 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
treasury securities |
|
|
127,445 |
|
|
|
135,459 |
|
|
|
119,882 |
|
|
|
42,675 |
|
|
|
40,314 |
|
U.S. federal
agency obligations |
|
|
4,979 |
|
|
|
14,931 |
|
|
|
17,013 |
|
|
|
17,195 |
|
|
|
17,297 |
|
Municipal
obligations, tax exempt |
|
|
128,392 |
|
|
|
134,994 |
|
|
|
130,915 |
|
|
|
137,984 |
|
|
|
140,788 |
|
Municipal
obligations, taxable |
|
|
61,959 |
|
|
|
49,356 |
|
|
|
45,586 |
|
|
|
40,046 |
|
|
|
38,988 |
|
Agency
mortgage-backed securities |
|
|
161,331 |
|
|
|
151,893 |
|
|
|
153,587 |
|
|
|
142,817 |
|
|
|
133,502 |
|
Investment
securities available-for-sale, at fair value |
|
|
484,106 |
|
|
|
486,633 |
|
|
|
466,983 |
|
|
|
380,717 |
|
|
|
370,889 |
|
Bank stocks,
at cost |
|
|
6,641 |
|
|
|
2,881 |
|
|
|
2,856 |
|
|
|
2,905 |
|
|
|
2,985 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four
family residential real estate |
|
|
205,466 |
|
|
|
192,517 |
|
|
|
169,514 |
|
|
|
166,081 |
|
|
|
161,120 |
|
Construction
and land |
|
|
18,119 |
|
|
|
23,092 |
|
|
|
25,408 |
|
|
|
27,644 |
|
|
|
26,658 |
|
Commercial
real estate |
|
|
228,669 |
|
|
|
209,879 |
|
|
|
196,736 |
|
|
|
198,472 |
|
|
|
193,455 |
|
Commercial |
|
|
144,582 |
|
|
|
137,929 |
|
|
|
127,226 |
|
|
|
132,154 |
|
|
|
135,790 |
|
Paycheck
Protection Program (PPP) |
|
|
410 |
|
|
|
652 |
|
|
|
5,218 |
|
|
|
17,179 |
|
|
|
28,671 |
|
Agriculture |
|
|
86,114 |
|
|
|
78,240 |
|
|
|
82,484 |
|
|
|
94,267 |
|
|
|
91,305 |
|
Municipal |
|
|
2,036 |
|
|
|
2,076 |
|
|
|
2,212 |
|
|
|
2,050 |
|
|
|
2,115 |
|
Consumer |
|
|
25,911 |
|
|
|
25,531 |
|
|
|
24,751 |
|
|
|
24,541 |
|
|
|
25,624 |
|
Total gross
loans |
|
|
711,307 |
|
|
|
669,916 |
|
|
|
633,549 |
|
|
|
662,388 |
|
|
|
664,738 |
|
Net deferred
loan (fees) costs and loans in process |
|
|
(311 |
) |
|
|
229 |
|
|
|
(43 |
) |
|
|
(380 |
) |
|
|
936 |
|
Allowance
for loan losses |
|
|
(8,858 |
) |
|
|
(8,315 |
) |
|
|
(8,357 |
) |
|
|
(8,775 |
) |
|
|
(8,766 |
) |
Loans,
net |
|
|
702,138 |
|
|
|
661,830 |
|
|
|
625,149 |
|
|
|
653,233 |
|
|
|
656,908 |
|
Loans held
for sale |
|
|
2,741 |
|
|
|
6,264 |
|
|
|
5,424 |
|
|
|
4,795 |
|
|
|
8,929 |
|
Bank owned
life insurance |
|
|
32,672 |
|
|
|
32,483 |
|
|
|
32,293 |
|
|
|
32,106 |
|
|
|
31,914 |
|
Premises and
equipment, net |
|
|
20,628 |
|
|
|
20,679 |
|
|
|
20,919 |
|
|
|
20,803 |
|
|
|
20,361 |
|
Goodwill |
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
Other
intangible assets, net |
|
|
36 |
|
|
|
52 |
|
|
|
67 |
|
|
|
84 |
|
|
|
104 |
|
Mortgage
servicing rights |
|
|
3,980 |
|
|
|
4,025 |
|
|
|
4,128 |
|
|
|
4,193 |
|
|
|
4,201 |
|
Real estate
owned, net |
|
|
1,288 |
|
|
|
1,288 |
|
|
|
1,288 |
|
|
|
2,551 |
|
|
|
2,578 |
|
Other
assets |
|
|
25,456 |
|
|
|
19,911 |
|
|
|
17,095 |
|
|
|
13,458 |
|
|
|
13,190 |
|
Total
assets |
|
$ |
1,355,296 |
|
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
|
$ |
1,254,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
|
347,942 |
|
|
|
343,107 |
|
|
|
350,342 |
|
|
|
350,005 |
|
|
|
317,827 |
|
Money market
and checking |
|
|
504,973 |
|
|
|
520,056 |
|
|
|
517,936 |
|
|
|
536,868 |
|
|
|
488,213 |
|
Savings |
|
|
170,988 |
|
|
|
170,419 |
|
|
|
167,823 |
|
|
|
155,501 |
|
|
|
151,380 |
|
Certificates of deposit |
|
|
93,234 |
|
|
|
97,885 |
|
|
|
103,464 |
|
|
|
106,107 |
|
|
|
109,267 |
|
Total
deposits |
|
|
1,117,137 |
|
|
|
1,131,467 |
|
|
|
1,139,565 |
|
|
|
1,148,481 |
|
|
|
1,066,687 |
|
Federal Home
Loan Bank borrowings |
|
|
74,900 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Subordinated
debentures |
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
Other
borrowings |
|
|
16,349 |
|
|
|
6,223 |
|
|
|
7,004 |
|
|
|
7,403 |
|
|
|
6,219 |
|
Accrued
interest and other liabilities |
|
|
19,775 |
|
|
|
15,708 |
|
|
|
14,701 |
|
|
|
15,790 |
|
|
|
24,571 |
|
Total
liabilities |
|
|
1,249,812 |
|
|
|
1,175,049 |
|
|
|
1,182,921 |
|
|
|
1,193,325 |
|
|
|
1,119,128 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock |
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
48 |
|
Additional
paid-in capital |
|
|
79,329 |
|
|
|
79,284 |
|
|
|
79,206 |
|
|
|
79,120 |
|
|
|
72,489 |
|
Retained
earnings |
|
|
58,114 |
|
|
|
56,662 |
|
|
|
54,677 |
|
|
|
52,593 |
|
|
|
56,957 |
|
Treasury
stock, at cost |
|
|
(1,040 |
) |
|
|
(538 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Accumulated
other comprehensive (loss) income |
|
|
(30,969 |
) |
|
|
(18,156 |
) |
|
|
(10,420 |
) |
|
|
3,880 |
|
|
|
5,912 |
|
Total
stockholders' equity |
|
|
105,484 |
|
|
|
117,302 |
|
|
|
123,513 |
|
|
|
135,643 |
|
|
|
135,406 |
|
Total
liabilities and stockholders' equity |
|
$ |
1,355,296 |
|
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
|
$ |
1,254,534 |
|
LANDMARK BANCORP, INC. AND
SUBSIDIARIESConsolidated Statements of Earnings
(unaudited)
(Dollars in thousands,
except per share amounts) |
|
Three months ended, |
|
|
Nine months ended, |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
8,025 |
|
|
$ |
7,156 |
|
|
$ |
8,461 |
|
|
$ |
22,372 |
|
|
$ |
25,705 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,783 |
|
|
|
1,543 |
|
|
|
782 |
|
|
|
4,379 |
|
|
|
2,356 |
|
Tax-exempt |
|
|
780 |
|
|
|
730 |
|
|
|
748 |
|
|
|
2,232 |
|
|
|
2,285 |
|
Total
interest income |
|
|
10,588 |
|
|
|
9,429 |
|
|
|
9,991 |
|
|
|
28,983 |
|
|
|
30,346 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
771 |
|
|
|
358 |
|
|
|
258 |
|
|
|
1,324 |
|
|
|
800 |
|
Borrowed
funds |
|
|
366 |
|
|
|
173 |
|
|
|
120 |
|
|
|
665 |
|
|
|
362 |
|
Total
interest expense |
|
|
1,137 |
|
|
|
531 |
|
|
|
378 |
|
|
|
1,989 |
|
|
|
1,162 |
|
Net interest
income |
|
|
9,451 |
|
|
|
8,898 |
|
|
|
9,613 |
|
|
|
26,994 |
|
|
|
29,184 |
|
Provision
for (reversal of) loan losses |
|
|
500 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
500 |
|
Net interest
income after provision for loan losses |
|
|
8,951 |
|
|
|
8,898 |
|
|
|
9,613 |
|
|
|
26,994 |
|
|
|
28,684 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and
service charges |
|
|
2,511 |
|
|
|
2,380 |
|
|
|
2,268 |
|
|
|
7,079 |
|
|
|
6,454 |
|
Gains on
sales of loans, net |
|
|
1,049 |
|
|
|
1,073 |
|
|
|
2,660 |
|
|
|
3,027 |
|
|
|
8,664 |
|
Bank owned
life insurance |
|
|
189 |
|
|
|
190 |
|
|
|
193 |
|
|
|
566 |
|
|
|
494 |
|
(Losses)
gains on sales of investment securities, net |
|
|
(353 |
) |
|
|
- |
|
|
|
30 |
|
|
|
(353 |
) |
|
|
1,138 |
|
Other |
|
|
133 |
|
|
|
153 |
|
|
|
314 |
|
|
|
569 |
|
|
|
913 |
|
Total
non-interest income |
|
|
3,529 |
|
|
|
3,796 |
|
|
|
5,465 |
|
|
|
10,888 |
|
|
|
17,663 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
and benefits |
|
|
5,051 |
|
|
|
4,953 |
|
|
|
5,132 |
|
|
|
14,779 |
|
|
|
15,096 |
|
Occupancy
and equipment |
|
|
1,335 |
|
|
|
1,177 |
|
|
|
1,101 |
|
|
|
3,745 |
|
|
|
3,268 |
|
Data
processing |
|
|
383 |
|
|
|
362 |
|
|
|
498 |
|
|
|
1,085 |
|
|
|
1,491 |
|
Amortization
of mortgage servicing rights and other intangibles |
|
|
314 |
|
|
|
335 |
|
|
|
376 |
|
|
|
965 |
|
|
|
1,225 |
|
Professional
fees |
|
|
472 |
|
|
|
415 |
|
|
|
413 |
|
|
|
1,338 |
|
|
|
1,236 |
|
Acquisition
costs |
|
|
134 |
|
|
|
221 |
|
|
|
- |
|
|
|
355 |
|
|
|
- |
|
Other |
|
|
1,769 |
|
|
|
1,559 |
|
|
|
1,923 |
|
|
|
5,051 |
|
|
|
5,390 |
|
Total
non-interest expense |
|
|
9,458 |
|
|
|
9,022 |
|
|
|
9,443 |
|
|
|
27,318 |
|
|
|
27,706 |
|
Earnings
before income taxes |
|
|
3,022 |
|
|
|
3,672 |
|
|
|
5,635 |
|
|
|
10,564 |
|
|
|
18,641 |
|
Income tax
expense |
|
|
522 |
|
|
|
639 |
|
|
|
1,118 |
|
|
|
1,898 |
|
|
|
3,777 |
|
Net
earnings |
|
$ |
2,500 |
|
|
$ |
3,033 |
|
|
$ |
4,517 |
|
|
$ |
8,666 |
|
|
$ |
14,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.61 |
|
|
$ |
0.90 |
|
|
$ |
1.74 |
|
|
$ |
2.98 |
|
Diluted |
|
|
0.50 |
|
|
|
0.61 |
|
|
|
0.90 |
|
|
|
1.73 |
|
|
|
2.97 |
|
Dividends per share (1) |
|
|
0.21 |
|
|
|
0.21 |
|
|
|
0.19 |
|
|
|
0.63 |
|
|
|
0.57 |
|
Shares outstanding at end of period (1) |
|
|
4,973,301 |
|
|
|
4,976,344 |
|
|
|
4,997,618 |
|
|
|
4,973,301 |
|
|
|
4,997,618 |
|
Weighted average common shares outstanding - basic (1) |
|
|
4,979,305 |
|
|
|
4,988,416 |
|
|
|
4,996,419 |
|
|
|
4,988,327 |
|
|
|
4,993,808 |
|
Weighted average common shares outstanding - diluted (1) |
|
|
4,992,450 |
|
|
|
5,002,425 |
|
|
|
5,010,973 |
|
|
|
5,003,158 |
|
|
|
5,003,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
equivalent net interest income |
|
$ |
9,657 |
|
|
$ |
9,094 |
|
|
$ |
9,815 |
|
|
$ |
27,591 |
|
|
$ |
29,800 |
|
(1) Share and per share values at or for the periods ended
September 30, 2021 have been adjusted to give effect to the 5%
stock dividend paid during December 2021.
LANDMARK BANCORP, INC. AND
SUBSIDIARIESSelect Ratios and Other Data
(unaudited)
|
|
As of or for
the |
|
|
|
|
(Dollars in thousands,
except per share amounts) |
|
three months ended, |
|
|
Nine months ended, |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
0.76 |
% |
|
|
0.93 |
% |
|
|
1.42 |
% |
|
|
0.89 |
% |
|
|
1.59 |
% |
Return on
average equity (1) |
|
|
8.33 |
% |
|
|
10.04 |
% |
|
|
13.36 |
% |
|
|
9.33 |
% |
|
|
15.23 |
% |
Net interest
margin (1)(2) |
|
|
3.21 |
% |
|
|
3.05 |
% |
|
|
3.36 |
% |
|
|
3.08 |
% |
|
|
3.47 |
% |
Effective
tax rate |
|
|
17.3 |
% |
|
|
17.4 |
% |
|
|
19.8 |
% |
|
|
18.0 |
% |
|
|
20.3 |
% |
Efficiency
ratio (3) |
|
|
69.6 |
% |
|
|
69.1 |
% |
|
|
61.2 |
% |
|
|
70.4 |
% |
|
|
59.8 |
% |
Non-interest
income to total income (3) |
|
|
29.1 |
% |
|
|
29.9 |
% |
|
|
36.0 |
% |
|
|
29.2 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities |
|
$ |
494,283 |
|
|
$ |
477,035 |
|
|
$ |
351,215 |
|
|
$ |
464,702 |
|
|
$ |
329,427 |
|
Loans |
|
|
687,716 |
|
|
|
653,013 |
|
|
|
667,952 |
|
|
|
659,109 |
|
|
|
702,450 |
|
Assets |
|
|
1,307,866 |
|
|
|
1,307,112 |
|
|
|
1,261,954 |
|
|
|
1,306,938 |
|
|
|
1,248,827 |
|
Interest-bearing deposits |
|
|
782,533 |
|
|
|
791,257 |
|
|
|
769,658 |
|
|
|
788,678 |
|
|
|
768,057 |
|
Subordinated
debentures and other borrowings |
|
|
37,532 |
|
|
|
21,651 |
|
|
|
21,655 |
|
|
|
27,003 |
|
|
|
21,654 |
|
Repurchase
agreements |
|
|
7,411 |
|
|
|
6,981 |
|
|
|
5,348 |
|
|
|
7,074 |
|
|
|
5,218 |
|
Stockholders' equity |
|
$ |
119,100 |
|
|
$ |
121,147 |
|
|
$ |
134,167 |
|
|
$ |
124,177 |
|
|
$ |
130,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tax equivalent yield/cost
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities |
|
|
2.18 |
% |
|
|
1.97 |
% |
|
|
1.88 |
% |
|
|
2.00 |
% |
|
|
2.08 |
% |
Loans |
|
|
4.63 |
% |
|
|
4.40 |
% |
|
|
5.03 |
% |
|
|
4.54 |
% |
|
|
4.90 |
% |
Total
interest-bearing assets |
|
|
3.59 |
% |
|
|
3.23 |
% |
|
|
3.49 |
% |
|
|
3.31 |
% |
|
|
3.61 |
% |
Interest-bearing deposits |
|
|
0.39 |
% |
|
|
0.18 |
% |
|
|
0.13 |
% |
|
|
0.22 |
% |
|
|
0.14 |
% |
Subordinated
debentures and other borrowings |
|
|
3.58 |
% |
|
|
3.06 |
% |
|
|
2.14 |
% |
|
|
3.10 |
% |
|
|
2.19 |
% |
Repurchase
agreements |
|
|
1.45 |
% |
|
|
0.46 |
% |
|
|
0.22 |
% |
|
|
0.72 |
% |
|
|
0.18 |
% |
Total
interest-bearing liabilities |
|
|
0.55 |
% |
|
|
0.26 |
% |
|
|
0.19 |
% |
|
|
0.32 |
% |
|
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
total assets |
|
|
7.78 |
% |
|
|
9.08 |
% |
|
|
10.79 |
% |
|
|
|
|
|
|
|
|
Tangible
equity to tangible assets (3) |
|
|
6.57 |
% |
|
|
7.82 |
% |
|
|
9.52 |
% |
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
21.21 |
|
|
$ |
23.57 |
|
|
$ |
27.09 |
|
|
|
|
|
|
|
|
|
Tangible book value per share (3) |
|
$ |
17.68 |
|
|
$ |
20.04 |
|
|
$ |
23.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward of allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance |
|
$ |
8,315 |
|
|
$ |
8,357 |
|
|
$ |
9,163 |
|
|
$ |
8,775 |
|
|
$ |
8,775 |
|
Charge-offs |
|
|
(106 |
) |
|
|
(76 |
) |
|
|
(616 |
) |
|
|
(235 |
) |
|
|
(908 |
) |
Recoveries |
|
|
149 |
|
|
|
34 |
|
|
|
219 |
|
|
|
318 |
|
|
|
399 |
|
Provision
for loan losses |
|
|
500 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
500 |
|
Ending balance |
|
$ |
8,858 |
|
|
$ |
8,315 |
|
|
$ |
8,766 |
|
|
$ |
8,858 |
|
|
$ |
8,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans |
|
$ |
4,823 |
|
|
$ |
4,887 |
|
|
$ |
9,829 |
|
|
|
|
|
|
|
|
|
Accruing
loans over 90 days past due |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Real estate
owned |
|
|
1,288 |
|
|
|
1,288 |
|
|
|
2,578 |
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
6,111 |
|
|
$ |
6,175 |
|
|
$ |
12,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89
days delinquent |
|
$ |
657 |
|
|
$ |
877 |
|
|
$ |
1,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to
deposits |
|
|
62.85 |
% |
|
|
58.49 |
% |
|
|
61.58 |
% |
|
|
|
|
|
|
|
|
Loans 30-89
days delinquent and still accruing to gross loans outstanding |
|
|
0.09 |
% |
|
|
0.13 |
% |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
Total
non-performing loans to gross loans outstanding |
|
|
0.68 |
% |
|
|
0.73 |
% |
|
|
1.48 |
% |
|
|
|
|
|
|
|
|
Total
non-performing assets to total assets |
|
|
0.45 |
% |
|
|
0.48 |
% |
|
|
0.99 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan losses to gross loans outstanding |
|
|
1.25 |
% |
|
|
1.24 |
% |
|
|
1.32 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan losses to gross loans outstanding excluding PPP loans |
|
|
1.25 |
% |
|
|
1.24 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan losses to total non-performing loans |
|
|
183.66 |
% |
|
|
170.15 |
% |
|
|
89.19 |
% |
|
|
|
|
|
|
|
|
Net loan
charge-offs to average loans (1) |
|
|
-0.02 |
% |
|
|
0.03 |
% |
|
|
0.24 |
% |
|
|
-0.02 |
% |
|
|
0.10 |
% |
(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
SUBSIDIARIESNon-GAAP Finacials Measures
(unaudited)
|
|
As of or for
the |
|
|
|
|
(Dollars in thousands,
except per share amounts) |
|
three months ended, |
|
|
Nine months ended, |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Non-GAAP
financial ratio reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
|
$ |
9,458 |
|
|
$ |
9,022 |
|
|
$ |
9,443 |
|
|
$ |
27,318 |
|
|
$ |
27,706 |
|
Less:
foreclosure and real estate owned expense |
|
|
(32 |
) |
|
|
(9 |
) |
|
|
(215 |
) |
|
|
(64 |
) |
|
|
(291 |
) |
Less:
amortization of other intangibles |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(28 |
) |
|
|
(48 |
) |
|
|
(102 |
) |
Less:
acquisition costs |
|
|
(134 |
) |
|
|
(221 |
) |
|
|
- |
|
|
|
(355 |
) |
|
|
- |
|
Adjusted
non-interest expense (A) |
|
|
9,276 |
|
|
|
8,777 |
|
|
|
9,200 |
|
|
|
26,851 |
|
|
|
27,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (B) |
|
|
9,451 |
|
|
|
8,898 |
|
|
|
9,613 |
|
|
|
26,994 |
|
|
|
29,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
3,529 |
|
|
|
3,796 |
|
|
|
5,465 |
|
|
|
10,888 |
|
|
|
17,663 |
|
Less: losses
(gains) on sales of investment securities, net |
|
|
353 |
|
|
|
- |
|
|
|
(30 |
) |
|
|
353 |
|
|
|
(1,138 |
) |
Less: gains
on sales of premises and equipment and foreclosed assets |
|
|
- |
|
|
|
- |
|
|
|
(19 |
) |
|
|
(114 |
) |
|
|
(24 |
) |
Adjusted
non-interest income (C) |
|
$ |
3,882 |
|
|
$ |
3,796 |
|
|
$ |
5,416 |
|
|
$ |
11,127 |
|
|
$ |
16,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (A/(B+C)) |
|
|
69.6 |
% |
|
|
69.1 |
% |
|
|
61.2 |
% |
|
|
70.4 |
% |
|
|
59.8 |
% |
Non-interest
income to total income (C/(B+C)) |
|
|
29.1 |
% |
|
|
29.9 |
% |
|
|
36.0 |
% |
|
|
29.2 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
105,484 |
|
|
$ |
117,302 |
|
|
$ |
135,406 |
|
|
|
|
|
|
|
|
|
Less:
goodwill and other intangible assets |
|
|
(17,568 |
) |
|
|
(17,584 |
) |
|
|
(17,636 |
) |
|
|
|
|
|
|
|
|
Tangible
equity (D) |
|
$ |
87,916 |
|
|
$ |
99,718 |
|
|
$ |
117,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,355,296 |
|
|
$ |
1,292,351 |
|
|
$ |
1,254,534 |
|
|
|
|
|
|
|
|
|
Less:
goodwill and other intangible assets |
|
|
(17,568 |
) |
|
|
(17,584 |
) |
|
|
(17,636 |
) |
|
|
|
|
|
|
|
|
Tangible
assets (E) |
|
$ |
1,337,728 |
|
|
$ |
1,274,767 |
|
|
$ |
1,236,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity to tangible assets (D/E) |
|
|
6.57 |
% |
|
|
7.82 |
% |
|
|
9.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period (F) |
|
|
4,973,301 |
|
|
|
4,976,344 |
|
|
|
4,997,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (D/F) |
|
$ |
17.68 |
|
|
$ |
20.04 |
|
|
$ |
23.57 |
|
|
|
|
|
|
|
|
|
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