8-K
LANDMARK BANCORP INC (LARK)
United
States
SecuritiesAnd Exchange Commission**** Washington, D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 27, 2021
LandmarkBancorp, Inc.****(Exact name of registrant as specified in charter)
| Delaware | 0-33203 | 43-1930755 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
701
Poyntz Avenue
Manhattan, Kansas 66502
(Address of principal executive offices) (Zip code)
(785) 565-2000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act.
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock, par value $0.01 per share | LARK | Nasdaq<br> Global Market |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On October 27, 2021, Landmark Bancorp, Inc. (the “Company”) issued a press release announcing financial results for the three months ended September 30, 2021. The press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information in this item and the attached exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
| Item 8.01. | Other Events. |
|---|
The Company also announced on October 27, 2021, that its Board of Directors approved a cash dividend of $0.20 per share and a 5% stock dividend. The cash dividend will be paid to all stockholders of record as of the close of business on November 10, 2021 and payable on November 24, 2021. The 5% stock dividend will be issued December 15, 2021, to common stockholders of record on December 1, 2021.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
| (d) | Exhibits |
|---|---|
| 99.1 | Press Release dated October 27, 2021 |
| --- | --- |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document) |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date:<br> October 27, 2021 | Landmark Bancorp, Inc. | |
|---|---|---|
| By: | /s/ Mark A. Herpich | |
| Name: | Mark<br> A. Herpich | |
| Title: | Vice<br> President, Secretary, Treasurer, and Chief Financial Officer |
Exhibit99.1
PRESSRELEASE
| FOR<br> IMMEDIATE RELEASE | Contacts: |
|---|---|
| October<br> 27, 2021 | Michael<br> E. Scheopner |
| President<br> and Chief Executive Officer | |
| Mark<br> A. Herpich | |
| Chief<br> Financial Officer | |
| (785)<br> 565-2000 |
LandmarkBancorp, Inc. Announces Third Quarter 2021 Diluted Earnings Per Share of $0.95
DeclaresCash Dividend of $0.20 per Share and 5% Stock Dividend
(Manhattan, KS, October 27, 2021) – Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.95 for the three months ended September 30, 2021, compared to $1.14 per share in the same quarter last year and $1.04 per share in the second quarter of 2021. Net earnings for the third quarter of 2021 amounted to $4.5 million, compared to $5.4 million for the third quarter of 2020 and $5.0 million in the second quarter of 2021. For the three months ended September 30, 2021, the return on average assets was 1.42%, the return on average equity was 13.36%, and the efficiency ratio was 61.2%.
For the first nine months of 2021, diluted earnings per share totaled $3.12 compared to $2.91 during the same period of 2020 while net earnings increased 7.0% to $14.9 million. For the nine months ended September 30, 2021, the return on average assets was 1.59%, the return on average equity was 15.23% and the efficiency ratio was 59.8%.
In announcing these results, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “We are pleased to report continued solid earnings during the third quarter of 2021, driven mainly by growth in our core lending, solid credit metrics, and strong capital. We continued to see a reduction in our Paycheck Protection Program (PPP) loans this quarter as they are being forgiven by the Small Business Administration (SBA). Excluding these loans, our loan portfolio increased $12.1 million, or 7.7%, primarily from solid growth in our commercial and commercial real estate loan portfolios. While gains on sales of loans this quarter are down from the same quarter last year, mostly as a result of a tight housing supply in our markets, gains on sales of loans nevertheless are a significant portion of our non-interest income which we believe we can count on in the future. Growth in fees and service charges helped to partly offset lower gains on sales of loans and lower gains on sales of investment securities this quarter. Non-interest expense this quarter remained below amounts in the same quarter last year. Total deposits this quarter declined slightly, and overall deposit costs remained at very low levels. Our net interest margin totaled a healthy 3.36% this quarter.”
Mr. Scheopner continued, “Credit quality remained strong this quarter as the Company recorded net loan charge-offs of $397,000 compared to net loan charge-offs of $108,000 in the prior quarter and $381,000 in the same quarter last year. The allowance for loan losses totaled $8.8 million at September 30, 2021, and there was no provision for loan losses this quarter. The allowance for loan losses was 1.38% of period end loans, excluding PPP loans for which no loan loss reserve has been provided. Loan modifications made related to COVID-19 to support our customers have mostly been returned to their original contractual terms. Our capital and liquidity positions remain strong with total equity to assets of 10.79% and loans to deposits of 61.6%. We believe Landmark’s risk management practices, liquidity and capital strength continue to position us well to meet the financial needs of families and businesses in our markets.”
Landmark’s Board of Directors declared a cash dividend of $0.20 per share, to be paid November 24, 2021, to common stockholders of record as of the close of business on November 10, 2021. The Board of Directors also declared a 5% stock dividend payable on December 15, 2021, to common stockholders of record on December 1, 2021. This is the 21st consecutive year that the Board has declared a 5% stock dividend.
Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, October 28, 2021. Investors may participate via telephone by dialing (844) 200-6205 and using access code 354661. A replay of the call will be available through November 24, 2021, by dialing (866) 813-9403 and using access code 998942.
SUMMARYOF THIRD QUARTER RESULTS
NetInterest Income
Net interest income amounted to $9.6 million for the three months ended September 30, 2021, compared to $9.3 million in the same period last year and $10.0 million in the second quarter of 2021. The increase of $346,000, or 3.7%, from the third quarter of 2020 was primarily the result of an increase in interest on loans and slightly lower deposit costs. During the third quarter of 2021, interest income on loans increased $463,000, or 5.8%, compared to the same period last year. This increase in loan interest income was mainly due to higher interest and fees earned on PPP loans compared to the same period last year. Interest and fees recognized on PPP loans in the third quarter of 2021 totaled $1.6 million compared to $2.2 million in the second quarter of 2021, and $832,000 in the same period last year. The average tax-equivalent yield on the loan portfolio was 5.03% in the current quarter compared to 4.42% in the same quarter last year and 5.00% in the prior quarter. Interest costs on interest-bearing deposits totaled 0.13% in the current quarter, 0.20% in the third quarter of 2020 and 0.14% in the prior quarter. On a tax-equivalent basis, the net interest margin totaled 3.36% in the third quarter 2021, compared to 3.54% in the prior quarter and 3.60% in the third quarter 2020.
Non-InterestIncome
Total non-interest income was $5.5 million for the third quarter of 2021, a decrease of $2.7 million, or 33.1%, compared to the same period last year and a slight decrease from the previous quarter. The decrease in non-interest income during the third quarter of 2021 compared to the same period last year was primarily due to a decrease of $2.3 million in gains on sales of mortgage loans as originations of one-to-four family residential real estate loans declined. Decreased loan originations mainly resulted from lower housing inventories coupled with higher mortgage interest rates during the third quarter of 2021, which reduced refinancing activity. Fees and service charges increased $146,000, or 6.9%, compared to the same quarter last year primarily due to higher interchange and servicing fees. The second and third quarters of 2021 included gains of $33,000 and $30,000, respectively, on the sale of low balance mortgage-backed investment securities while the third quarter of 2020 included a gain of $678,000 on the sale of higher-coupon mortgage-backed investment securities.
Non-InterestExpense
During the third quarter of 2021, non-interest expense totaled $9.4 million, a slight decrease over the same period last year and $253,000 higher than the prior quarter. The decrease in non-interest expense in the third quarter of 2021 compared to the same period of last year was primarily due to a $427,000 decrease in compensation and benefits, which was primarily a result of lower costs related to one-to-four family residential real estate commissions, coupled with lower costs for amortization of mortgage servicing rights but offset in part by higher data processing fees and other non-interest expense. The growth in other non-interest expense of $359,000 was mainly due to costs associated with the PPP loan forgiveness process and foreclosure and real estate owned expense.
IncomeTax Expense
Landmark recorded income tax expense of $1.1 million in the third quarter of 2021 compared to $1.5 million in the third quarter of 2020 and $1.3 million in the second quarter of 2021. The effective tax rate amounted to 19.8% in the current quarter compared to 21.5% in the third quarter of 2020 and 20.5% in the prior quarter.
BalanceSheet Highlights
As of September 30, 2021, gross loans totaled $664.7 million, a decrease of $20.5 million over the prior quarter-end and a decrease of $74.6 million since September 30, 2020. Declines over both periods were primarily due to lower PPP loans, which have been paying off over the last twelve months. The average balance of PPP loans totaled $40.4 million in the third quarter of 2021 compared to $97.5 million in the prior quarter and $130.8 million in the third quarter last year. Excluding these loans, gross loans increased $12.1 million, or 7.7% annualized, during the third quarter of 2021, primarily due to increases of $8.1 million in commercial loans and $4.4 million in commercial real estate loans. Compared to June 30, 2021, investment securities increased $34.6 million to $378.5 million as of September 30, 2021, while deposits decreased $11.1 million to $1.1 billion.
Stockholders’ equity increased to $135.4 million (book value of $28.45 per share) as of September 30, 2021, from $132.4 million (book value of $27.83 per share) as of June 30, 2021. The ratio of equity to total assets increased to 10.79% on September 30, 2021, from 10.58% at June 30, 2021 while the ratio of tangible equity to tangible assets (a non-GAAP financial measure) increased from 9.30% to 9.52% between the same dates.
The allowance for loan losses totaled $8.8 million, or 1.38% of total gross loans (excluding PPP loans) on September 30, 2021, compared to $9.2 million, or 1.47% of total gross loans (excluding PPP loans) on June 30, 2021. No allowance for loan losses has been allocated to PPP loans because they are guaranteed by the SBA. Net loan charge-offs totaled $397,000 in the third quarter of 2021, compared to $381,000 during the same quarter last year and $108,000 during the second quarter of 2021. The ratio of annualized net loan charge-offs to total average loans was 0.24% in the current quarter, 0.06% in the prior quarter and 0.21% in the third quarter of last year. There was no provision for loan losses made in the third quarter 2021.
During the current quarter, non-performing loans decreased $3.5 million to $9.8 million, or 1.48% of gross loans, while loans 30-89 days delinquent decreased $339,000 to $1.5 million, or 0.23% of gross loans, as of September 30, 2021.
AboutLandmark
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, LaCrosse, 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.
LANDMARKBANCORP, INC. AND SUBSIDIARIES
ConsolidatedBalance Sheets (unaudited)
| (Dollars in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 117,314 | $ | 131,018 | $ | 109,151 | $ | 84,818 | $ | 15,820 | |||||
| Investment securities: | |||||||||||||||
| U.S. treasury securities | 40,314 | 36,646 | 20,359 | 2,037 | 2,047 | ||||||||||
| U.S. federal agency obligations | 17,297 | 22,852 | 18,861 | 18,924 | 18,988 | ||||||||||
| Municipal obligations, tax exempt | 140,788 | 140,526 | 143,105 | 142,676 | 141,877 | ||||||||||
| Municipal obligations, taxable | 38,988 | 38,779 | 41,138 | 49,535 | 48,379 | ||||||||||
| Agency mortgage-backed securities | 133,502 | 99,936 | 91,987 | 78,638 | 83,565 | ||||||||||
| Certificates of deposit | 7,629 | 5,205 | 5,455 | 5,460 | 4,674 | ||||||||||
| Investment securities available-for-sale, at fair value | 378,518 | 343,944 | 320,905 | 297,270 | 299,530 | ||||||||||
| Bank stocks, at cost | 2,985 | 3,220 | 4,062 | 4,473 | 4,459 | ||||||||||
| Loans: | |||||||||||||||
| One-to-four family residential real estate | 161,120 | 162,606 | 159,798 | 157,984 | 162,344 | ||||||||||
| Construction and land | 26,658 | 27,092 | 26,591 | 26,106 | 28,094 | ||||||||||
| Commercial real estate | 193,455 | 189,093 | 179,781 | 172,307 | 154,804 | ||||||||||
| Commercial | 135,790 | 127,672 | 126,998 | 134,047 | 137,286 | ||||||||||
| Paycheck Protection Program (PPP) | 28,671 | 61,236 | 117,297 | 100,084 | 130,977 | ||||||||||
| Agriculture | 91,305 | 89,667 | 92,486 | 96,532 | 99,430 | ||||||||||
| Municipal | 2,115 | 2,178 | 2,183 | 2,332 | 2,389 | ||||||||||
| Consumer | 25,624 | 25,676 | 25,557 | 24,122 | 23,988 | ||||||||||
| Total gross loans | 664,738 | 685,220 | 730,691 | 713,514 | 739,312 | ||||||||||
| Net deferred loan (fees) costs and loans in process | 936 | (2,361 | ) | (3,611 | ) | (1,957 | ) | (2,796 | ) | ||||||
| Allowance for loan losses | (8,766 | ) | (9,163 | ) | (9,271 | ) | (8,775 | ) | (8,366 | ) | |||||
| Loans, net | 656,908 | 673,696 | 717,809 | 702,782 | 728,150 | ||||||||||
| Loans held for sale | 8,929 | 10,952 | 13,995 | 15,533 | 18,253 | ||||||||||
| Bank owned life insurance | 31,914 | 31,722 | 25,568 | 25,420 | 25,269 | ||||||||||
| Premises and equipment, net | 20,361 | 20,137 | 20,320 | 20,493 | 20,617 | ||||||||||
| Goodwill | 17,532 | 17,532 | 17,532 | 17,532 | 17,532 | ||||||||||
| Other intangible assets, net | 104 | 132 | 168 | 206 | 246 | ||||||||||
| Mortgage servicing rights | 4,201 | 4,143 | 3,966 | 3,726 | 3,332 | ||||||||||
| Real estate owned, net | 2,578 | 1,385 | 1,474 | 1,774 | 1,488 | ||||||||||
| Other assets | 13,190 | 12,545 | 13,925 | 14,000 | 14,246 | ||||||||||
| Total assets | $ | 1,254,534 | $ | 1,250,426 | $ | 1,248,875 | $ | 1,188,027 | $ | 1,148,942 | |||||
| Liabilities and Stockholders’ Equity | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing demand | 317,827 | 307,125 | 314,616 | 264,878 | 272,864 | ||||||||||
| Money market and checking | 488,213 | 504,025 | 490,634 | 491,275 | 437,056 | ||||||||||
| Savings | 151,380 | 150,874 | 142,507 | 126,124 | 120,424 | ||||||||||
| Certificates of deposit | 109,267 | 115,739 | 123,489 | 133,750 | 127,598 | ||||||||||
| Total deposits | 1,066,687 | 1,077,763 | 1,071,246 | 1,016,027 | 957,942 | ||||||||||
| Federal Home Loan Bank borrowings | - | - | - | - | 20,069 | ||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | ||||||||||
| Other borrowings | 6,219 | 4,534 | 4,165 | 6,371 | 8,400 | ||||||||||
| Accrued interest and other liabilities | 24,571 | 14,122 | 23,532 | 17,306 | 19,010 | ||||||||||
| Total liabilities | 1,119,128 | 1,118,070 | 1,120,594 | 1,061,355 | 1,027,072 | ||||||||||
| Stockholders’ equity: | |||||||||||||||
| Common stock | 48 | 48 | 48 | 48 | 46 | ||||||||||
| Additional paid-in capital | 72,489 | 72,413 | 72,336 | 72,230 | 69,303 | ||||||||||
| Retained earnings | 56,957 | 53,391 | 49,363 | 44,947 | 45,462 | ||||||||||
| Treasury stock, at cost | - | - | - | - | (2,349 | ) | |||||||||
| Accumulated other comprehensive income | 5,912 | 6,504 | 6,534 | 9,447 | 9,408 | ||||||||||
| Total stockholders’ equity | 135,406 | 132,356 | 128,281 | 126,672 | 121,870 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 1,254,534 | $ | 1,250,426 | $ | 1,248,875 | $ | 1,188,027 | $ | 1,148,942 |
LANDMARKBANCORP, INC. AND SUBSIDIARIES
ConsolidatedStatements 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, | ||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | ||||||
| Interest income: | ||||||||||
| Loans | $ | 8,461 | $ | 8,840 | $ | 7,998 | $ | 25,705 | $ | 22,890 |
| Investment securities: | ||||||||||
| Taxable | 782 | 763 | 945 | 2,356 | 3,335 | |||||
| Tax-exempt | 748 | 759 | 814 | 2,285 | 2,491 | |||||
| Total interest income | 9,991 | 10,362 | 9,757 | 30,346 | 28,716 | |||||
| Interest expense: | ||||||||||
| Deposits | 258 | 261 | 354 | 800 | 1,798 | |||||
| Borrowed funds | 120 | 121 | 136 | 362 | 534 | |||||
| Total interest expense | 378 | 382 | 490 | 1,162 | 2,332 | |||||
| Net interest income | 9,613 | 9,980 | 9,267 | 29,184 | 26,384 | |||||
| Provision for loan losses | - | - | 1,000 | 500 | 2,600 | |||||
| Net interest income after provision for loan losses | 9,613 | 9,980 | 8,267 | 28,684 | 23,784 | |||||
| Non-interest income: | ||||||||||
| Fees and service charges | 2,268 | 2,153 | 2,122 | 6,454 | 5,838 | |||||
| Gains on sales of loans, net | 2,660 | 2,864 | 4,944 | 8,664 | 10,961 | |||||
| Bank owned life insurance | 193 | 153 | 152 | 494 | 460 | |||||
| Gains on sales of investment securities, net | 30 | 33 | 678 | 1,138 | 2,448 | |||||
| Other | 314 | 270 | 269 | 913 | 783 | |||||
| Total non-interest income | 5,465 | 5,473 | 8,165 | 17,663 | 20,490 | |||||
| Non-interest expense: | ||||||||||
| Compensation and benefits | 5,132 | 5,023 | 5,559 | 15,096 | 15,394 | |||||
| Occupancy and equipment | 1,101 | 1,105 | 1,106 | 3,268 | 3,248 | |||||
| Data processing | 498 | 492 | 447 | 1,491 | 1,311 | |||||
| Amortization of mortgage servicing rights and other intangibles | 376 | 412 | 465 | 1,225 | 1,166 | |||||
| Professional fees | 413 | 431 | 381 | 1,236 | 1,095 | |||||
| Other | 1,923 | 1,727 | 1,564 | 5,390 | 4,531 | |||||
| Total non-interest expense | 9,443 | 9,190 | 9,522 | 27,706 | 26,745 | |||||
| Earnings before income taxes | 5,635 | 6,263 | 6,910 | 18,641 | 17,529 | |||||
| Income tax expense | 1,118 | 1,283 | 1,483 | 3,777 | 3,639 | |||||
| Net earnings | $ | 4,517 | $ | 4,980 | $ | 5,427 | $ | 14,864 | $ | 13,890 |
| Net earnings per share (1) | ||||||||||
| Basic | $ | 0.95 | $ | 1.05 | $ | 1.15 | $ | 3.13 | $ | 2.92 |
| Diluted | 0.95 | 1.04 | 1.14 | 3.12 | 2.91 | |||||
| Dividends per share (1) | 0.20 | 0.20 | 0.19 | 0.60 | 0.57 | |||||
| Shares outstanding at end of period (1) | 4,759,636 | 4,756,604 | 4,736,537 | 4,759,636 | 4,736,537 | |||||
| Weighted average common shares outstanding - basic (1) | 4,758,494 | 4,752,864 | 4,730,201 | 4,756,008 | 4,753,107 | |||||
| Weighted average common shares outstanding - diluted (1) | 4,772,355 | 4,759,498 | 4,748,090 | 4,765,348 | 4,771,869 | |||||
| Tax equivalent net interest income | $ | 9,815 | $ | 10,185 | $ | 9,486 | $ | 29,800 | $ | 27,048 |
(1) Share and per share values at or for the periods ended September 30, 2020 have been adjusted to give effect to the 5% stock dividend paid during December 2020.
LANDMARKBANCORP, INC. AND SUBSIDIARIES
SelectRatios and Other Data (unaudited)
| (Dollars in thousands, except per share amounts) | As of or for the<br><br>three months ended, | As of or for the<br><br>nine months ended, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Performance ratios: | |||||||||||||||
| Return on average assets (1) | 1.42 | % | 1.59 | % | 1.89 | % | 1.59 | % | 1.71 | % | |||||
| Return on average equity (1) | 13.36 | % | 15.40 | % | 18.06 | % | 15.23 | % | 16.19 | % | |||||
| Net interest margin (1)(2) | 3.36 | % | 3.54 | % | 3.60 | % | 3.47 | % | 3.66 | % | |||||
| Effective tax rate | 19.8 | % | 20.5 | % | 21.5 | % | 20.3 | % | 20.8 | % | |||||
| Efficiency ratio (3) | 61.2 | % | 58.9 | % | 56.2 | % | 59.8 | % | 59.6 | % | |||||
| Non-interest income to total income (3) | 36.0 | % | 35.3 | % | 44.7 | % | 36.1 | % | 40.7 | % | |||||
| Average balances: | |||||||||||||||
| Investment securities | $ | 357,652 | $ | 340,306 | $ | 307,904 | $ | 335,186 | $ | 327,608 | |||||
| Loans | 667,952 | 709,872 | 720,742 | 702,450 | 647,535 | ||||||||||
| Assets | 1,261,954 | 1,253,995 | 1,144,852 | 1,248,827 | 1,082,473 | ||||||||||
| Interest-bearing deposits | 769,658 | 771,728 | 690,900 | 768,057 | 663,480 | ||||||||||
| Subordinated debentures and other borrowings | 27,003 | 26,038 | 40,133 | 26,872 | 40,079 | ||||||||||
| Stockholders’ equity | 134,167 | 129,744 | 119,529 | 130,521 | 114,608 | ||||||||||
| Average tax equivalent yield/cost (1): | |||||||||||||||
| Investment securities | 1.86 | % | 2.00 | % | 2.54 | % | 2.05 | % | 2.63 | % | |||||
| Loans | 5.03 | % | 5.00 | % | 4.42 | % | 4.90 | % | 4.73 | % | |||||
| Total interest-bearing assets | 3.49 | % | 3.67 | % | 3.79 | % | 3.61 | % | 3.97 | % | |||||
| Interest-bearing deposits | 0.13 | % | 0.14 | % | 0.20 | % | 0.14 | % | 0.36 | % | |||||
| Subordinated debentures and other borrowings | 1.76 | % | 1.86 | % | 1.35 | % | 1.80 | % | 1.78 | % | |||||
| Total interest-bearing liabilities | 0.19 | % | 0.19 | % | 0.27 | % | 0.20 | % | 0.44 | % | |||||
| Capital ratios: | |||||||||||||||
| Equity to total assets | 10.79 | % | 10.58 | % | 10.61 | % | |||||||||
| Tangible equity to tangible assets (3) | 9.52 | % | 9.30 | % | 9.20 | % | |||||||||
| Book value per share | $ | 28.45 | $ | 27.83 | $ | 25.73 | |||||||||
| Tangible book value per share (3) | $ | 24.74 | $ | 24.11 | $ | 21.98 | |||||||||
| Rollforward of allowance for loan losses: | |||||||||||||||
| Beginning balance | $ | 9,163 | $ | 9,271 | $ | 7,747 | $ | 8,775 | $ | 6,467 | |||||
| Charge-offs | (616 | ) | (228 | ) | (407 | ) | (908 | ) | (803 | ) | |||||
| Recoveries | 219 | 120 | 26 | 399 | 102 | ||||||||||
| Provision for loan losses | - | - | 1,000 | 500 | 2,600 | ||||||||||
| Ending balance | $ | 8,766 | $ | 9,163 | $ | 8,366 | $ | 8,766 | $ | 8,366 | |||||
| Non-performing assets: | |||||||||||||||
| Non-accrual loans | $ | 9,829 | $ | 13,297 | $ | 6,346 | |||||||||
| Accruing loans over 90 days past due | - | - | - | ||||||||||||
| Non-performing investment securities | - | - | - | ||||||||||||
| Real estate owned | 2,578 | 1,385 | 1,488 | ||||||||||||
| Total non-performing assets | $ | 12,407 | $ | 14,682 | $ | 7,834 | |||||||||
| 30-89 days delinquent loans | $ | 1,542 | $ | 1,881 | $ | 3,687 | |||||||||
| Other ratios: | |||||||||||||||
| Loans to deposits | 61.58 | % | 62.51 | % | 76.01 | % | |||||||||
| Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.23 | % | 0.27 | % | 0.50 | % | |||||||||
| Total non-performing loans to gross loans outstanding | 1.48 | % | 1.94 | % | 0.86 | % | |||||||||
| Total non-performing assets to total assets | 0.99 | % | 1.17 | % | 0.68 | % | |||||||||
| Allowance for loan losses to gross loans outstanding | 1.32 | % | 1.34 | % | 1.13 | % | |||||||||
| Allowance for loan losses to gross loans outstanding excluding PPP loans | 1.38 | % | 1.47 | % | 1.51 | % | |||||||||
| Allowance for loan losses to total non-performing loans | 89.19 | % | 68.91 | % | 131.83 | % | |||||||||
| Net loan charge-offs to average loans (1) | 0.24 | % | 0.06 | % | 0.21 | % | 0.10 | % | 0.14 | % |
(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.
LANDMARKBANCORP, INC. AND SUBSIDIARIES
Non-GAAPFinacials Measures (unaudited)
| (Dollars in thousands, except per share amounts) | As of or for the<br><br>three months ended, | As of or for the<br><br>nine months ended, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Non-GAAP financial ratio reconciliation: | |||||||||||||||
| Total non-interest expense | $ | 9,443 | $ | 9,190 | $ | 9,522 | $ | 27,706 | $ | 26,745 | |||||
| Less: foreclosure and real estate owned expense | (215 | ) | (65 | ) | (68 | ) | (291 | ) | (110 | ) | |||||
| Less: amortization of other intangibles | (28 | ) | (36 | ) | (45 | ) | (102 | ) | (137 | ) | |||||
| Adjusted non-interest expense (A) | 9,200 | 9,089 | 9,409 | 27,313 | 26,498 | ||||||||||
| Net interest income (B) | 9,613 | 9,980 | 9,267 | 29,184 | 26,384 | ||||||||||
| Non-interest income | 5,465 | 5,473 | 8,165 | 17,663 | 20,490 | ||||||||||
| Less: gains on sales of investment securities, net | (30 | ) | (33 | ) | (678 | ) | (1,138 | ) | (2,448 | ) | |||||
| Less: gains on sales of premises and equipment and foreclosed assets | (19 | ) | - | (6 | ) | (24 | ) | 39 | |||||||
| Adjusted non-interest income (C) | $ | 5,416 | $ | 5,440 | $ | 7,481 | $ | 16,501 | $ | 18,081 | |||||
| Efficiency ratio (A/(B+C)) | 61.2 | % | 58.9 | % | 56.2 | % | 59.8 | % | 59.6 | % | |||||
| Non-interest income to total income (C/(B+C)) | 36.0 | % | 35.3 | % | 44.7 | % | 36.1 | % | 40.7 | % | |||||
| Total stockholders’ equity | $ | 135,406 | $ | 132,356 | $ | 121,870 | |||||||||
| Less: goodwill and other intangible assets | (17,636 | ) | (17,664 | ) | (17,778 | ) | |||||||||
| Tangible equity (D) | $ | 117,770 | $ | 114,692 | $ | 104,092 | |||||||||
| Total assets | $ | 1,254,534 | $ | 1,250,426 | $ | 1,148,942 | |||||||||
| Less: goodwill and other intangible assets | (17,636 | ) | (17,664 | ) | (17,778 | ) | |||||||||
| Tangible assets (E) | $ | 1,236,898 | $ | 1,232,762 | $ | 1,131,164 | |||||||||
| Tangible equity to tangible assets (D/E) | 9.52 | % | 9.30 | % | 9.20 | % | |||||||||
| Shares outstanding at end of period (F) | 4,759,636 | 4,756,604 | 4,736,537 | ||||||||||||
| Tangible book value per share (D/F) | $ | 24.74 | $ | 24.11 | $ | 21.98 |