8-K
LANDMARK BANCORP INC (LARK)
United
States
Securities
And 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): April 27, 2022
LandmarkBancorp, Inc.
(Exact name of registrant as specified in charter)
| Delaware | 0-33203 | 43-1930755 |
|---|---|---|
| (State<br> or other jurisdiction<br><br> <br>of<br> incorporation) | (Commission<br><br> <br>File<br> Number) | (I.R.S.<br> Employer<br><br> <br>Identification<br> No.) |
701Poyntz 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. ☐
Item2.02. Results of Operations and Financial Condition.
On April 27, 2022, Landmark Bancorp, Inc. (the “Company”) issued a press release announcing financial results for the three months ended March 31, 2022. 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.
Item8.01. Other Events.
The Company also announced on April 27, 2022, that its Board of Directors approved a cash dividend of $0.21 per share. The cash dividend will be paid to all stockholders of record as of the close of business on May 11, 2022 and payable on May 25, 2022.
Item9.01. Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release dated April 27, 2022 |
|---|---|
| 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> April 27, 2022 | 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: |
|---|---|
| April<br> 27, 2022 | 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 First Quarter Earnings Per Share of $0.62
DeclaresCash Dividend of $0.21 per Share
(Manhattan, KS, April 27, 2022) – Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.62 for the three months ended March 31, 2022, compared to $1.08 per share in the same quarter last year and $0.63 per share in the fourth quarter of 2021. Net earnings for the first quarter of 2022 amounted to $3.1 million, compared to $5.4 million for the first quarter of 2021 and $3.1 million in the fourth quarter of 2021. For the three months ended March 31, 2022, the return on average assets was 0.97%, the return on average equity was 9.59%, and the efficiency ratio was 71.9%.
In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “Net earnings declined in the first quarter of 2022 compared to the same period last year due to decreased mortgage banking revenue, lower interest income on loans mainly from a decline in Paycheck Protection Program (PPP) loans and lower gains on sales of investment securities. Gains on sales of one-to-four family residential real estate loans this quarter declined $2.2 million from the same quarter last year, due to tight housing supplies and lower refinancing activities; however, fees and service charge income grew by 7.6% compared to the first quarter of 2021. Non-interest expense decreased by $235,000, or 2.6% this quarter compared to the same quarter last year. During the first quarter of 2022, total gross loans declined $28.8 million or 4.4% mainly due to lower PPP loans coupled with declines in agricultural and other commercial related loans. Total deposits declined slightly this quarter but have increased by $68.3 million, or 6.4%, as compared to March 31, 2021. Overall, deposit costs remain low.”
Mr. Scheopner continued, “Credit quality continued to remain strong as Landmark recorded net loan recoveries of $82,000 in the first quarter of 2022 compared to net loan charge-offs of $4,000 in the first quarter of 2021 and net loan recoveries of $9,000 in the prior quarter. Non-accrual loans declined to $4.7 million in the first quarter of 2022 compared to $5.2 million in the prior quarter. These strong credit results coupled with a decline in loans (exclusive of PPP loans) resulted in the recording of a reverse provision for loan losses of $500,000 in the first quarter of 2022. The allowance for loan losses totaled $8.4 million at March 31, 2022, or 1.33% of period end loans, excluding PPP loans for which no loan loss reserve has been provided. Our equity to assets ratio totaled 9.45% while loans to deposits totaled 54.9%. We believe Landmark’s risk management practices, liquidity and capital strength continue to position us well for future growth and to meet the financial needs of families and businesses in our markets.”
Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid May 25, 2022, to common stockholders of record as of the close of business on May 11, 2022. Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, April 28, 2022. Investors may participate via telephone by dialing (844) 200-6205 and using access code 721310. A replay of the call will be available through May 29, 2022, by dialing (866) 813-9403 and using access code 066994.
SUMMARYOF FIRST QUARTER RESULTS
NetInterest Income
Net interest income amounted to $8.6 million for the three months ended March 31, 2022, compared to $9.6 million in the same period last year and $9.1 million in the fourth quarter of 2021. The decrease of $946,000, or 9.9%, from the first quarter of 2021 was primarily the result of a decrease in interest on loans, which declined $1.2 million or 14.4%. Compared to the same period last year, the decrease in loan interest income was partly due to lower interest and fees earned on PPP loans coupled with a decline in interest earned on other commercial related loans. Interest and fees recognized on PPP loans in the first quarter of 2022 totaled $480,000 compared to $1.1 million in the same period last year and $661,000 million in the fourth quarter of 2021. The average tax-equivalent yield on the loan portfolio was 4.59% in the first quarter of 2022 compared to 4.67% in the same quarter last year and 4.81% in the prior quarter. Interest costs on interest-bearing deposits totaled 0.10% in the first quarter of 2022, 0.15% in the first quarter of 2021 and 0.12% in the prior quarter. On a tax-equivalent basis, the net interest margin totaled 2.99% in the first quarter of 2022, compared to 3.17% in the prior quarter and 3.51% in the first quarter of 2021.
Non-InterestIncome
Non-interest income totaled $3.6 million for the first quarter of 2022, a decrease of $3.2 million, or 47.0%, compared to the same period last year and a decrease of $1.0 million, or 22.5% from the previous quarter. The decrease in non-interest income during the first quarter of 2022 compared to the same period last year was primarily due to a decrease of $2.2 million in gains on sales of mortgage loans as originations of residential real estate loans declined. Decreased loan originations mainly resulted from low housing inventories coupled with increasing mortgage interest rates during the first quarter of 2022, which reduced refinancing activity. The first quarter of 2021 included gains of $1.1 million on the sale of higher-coupon municipal investment securities. There were no investment securities sold in the first quarter of 2022. Fees and service charges increased $155,000, or 7.6%, compared to the same quarter last year.
Non-InterestExpense
During the first quarter of 2022, non-interest expense totaled $8.8 million, a decrease of $235,000, or 2.6% over the same period last year and a decrease of $712,000, or 7.5% from the prior quarter. The decrease in non-interest expense in the first quarter of 2022 compared to the same period of last year was primarily due to declines of $166,000 in compensation and benefits, $161,000 in data processing and $121,000 in amortization expense. The decrease in compensation and benefits expense was primarily due to lower commissions paid on residential real estate loans originated. The Company negotiated a new contract with its core technology provider resulting in a lower monthly data processing expense. Amortization of mortgage servicing rights and other intangibles also declined. Partially offsetting those declines was an increase of $171,000 in occupancy and equipment related to investments in new ATM equipment and higher occupancy costs.
IncomeTax Expense
Landmark recorded income tax expense of $737,000 in the first quarter of 2022 compared to $1.4 million in the first quarter of 2021 and $1.0 million in the fourth quarter of 2021. The effective tax rate decreased to 19.0% in the first quarter of 2022 compared to 20.4% in the first quarter of 2021, primarily due to lower pretax earnings. The higher effective tax rate of 24.8% in the fourth quarter of 2021 included additional income tax expense of $162,000 related to the recognition of previously unrecognized tax benefits.
BalanceSheet Highlights
As of March 31, 2022, gross loans totaled $633.5 million, a decrease of $28.8 million since December 31, 2021. The decline was primarily due to a reduction of $12.0 million in PPP loans, which were paid off after forgiveness was approved by the Small Business Administration. The balance of PPP loans totaled $5.2 million at March 31, 2022 compared to $17.2 million at December 31, 2021. Excluding these loans, gross loans decreased $16.9 million, or 10.7% annualized, during the first quarter of 2022, primarily due to decreases of $11.8 million in agriculture loans and $4.9 million in commercial loans. Compared to December 31, 2021, investment securities increased $86.3 million to $467.0 million as of March 31, 2020, while deposits decreased $8.9 million to $1.1 billion.
Stockholders’ equity decreased to $123.5 million (book value of $24.72 per share) as of March 31, 2022, from $135.6 million (book value of $27.14 per share) as of December 31, 2021, as a result of an increase in unrealized losses on the Company’s investment securities portfolio, due to increasing interest rates this quarter. The ratio of equity to total assets decreased to 9.45% on March 31, 2022, from 10.21% at December 31, 2021.
The allowance for loan losses totaled $8.4 million, or 1.33% of total gross loans (excluding PPP loans) on March 31, 2022, compared to $8.8 million, or 1.36% of total gross loans (excluding PPP loans) on December 31, 2021. No allowance for loan losses has been allocated to PPP loans because they are guaranteed by the SBA. Net loan recoveries totaled $82,000 in the first quarter of 2022, compared to net loan charge-offs of $4,000 during the same quarter last year and net loan recoveries of $9,000 during the fourth quarter of 2021. The ratio of annualized net loan charge-offs to total average loans was -0.05% in the first quarter of 2022, -0.01% in the prior quarter and 0.00% in the first quarter of last year. A reverse provision for loan losses of $500,000 was made in the first quarter 2022 as a result of the decline in loan balances. This compares to no provision for loan losses in the prior quarter and $500,000 in the first quarter of 2021.
During the first quarter of 2022, non-performing loans decreased $554,000 to $4.7 million, or 0.74% of gross loans, while loans 30-89 days delinquent decreased $1.1 million to $846,000, or 0.13% of gross loans, as of December 31, 2021. Real estate owned totaled $1.3 million at March 31, 2022, which was a decline of $1.3 million from December 31, 2021. The decline in real estate owned was primarily due to the sale of two commercial real estate properties.
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, 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.
LANDMARKBANCORP, INC. AND SUBSIDIARIES
ConsolidatedBalance Sheets (unaudited)
| (Dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 106,319 | $ | 189,213 | $ | 117,314 | $ | 131,018 | $ | 109,151 | |||||
| Interest-bearing deposits at other banks | 6,381 | 7,378 | 7,629 | 5,205 | 5,455 | ||||||||||
| Investment securities: | |||||||||||||||
| U.S. treasury securities | 119,882 | 42,675 | 40,314 | 36,646 | 20,359 | ||||||||||
| U.S. federal agency obligations | 17,013 | 17,196 | 17,297 | 22,852 | 18,861 | ||||||||||
| Municipal obligations, tax exempt | 130,915 | 137,983 | 140,788 | 140,526 | 143,105 | ||||||||||
| Municipal obligations, taxable | 45,586 | 40,046 | 38,988 | 38,779 | 41,138 | ||||||||||
| Agency mortgage-backed securities | 153,587 | 142,817 | 133,502 | 99,936 | 91,987 | ||||||||||
| Investment securities available-for-sale, at fair value | 466,983 | 380,717 | 370,889 | 338,739 | 315,450 | ||||||||||
| Bank stocks, at cost | 2,856 | 2,905 | 2,985 | 3,220 | 4,062 | ||||||||||
| Loans: | |||||||||||||||
| One-to-four family residential real estate | 169,514 | 166,081 | 161,120 | 162,606 | 159,798 | ||||||||||
| Construction and land | 25,408 | 27,644 | 26,658 | 27,092 | 26,591 | ||||||||||
| Commercial real estate | 196,736 | 198,472 | 193,455 | 189,093 | 179,781 | ||||||||||
| Commercial | 127,226 | 132,154 | 135,790 | 127,672 | 126,998 | ||||||||||
| Paycheck Protection Program (PPP) | 5,218 | 17,179 | 28,671 | 61,236 | 117,297 | ||||||||||
| Agriculture | 82,484 | 94,267 | 91,305 | 89,667 | 92,486 | ||||||||||
| Municipal | 2,212 | 2,050 | 2,115 | 2,178 | 2,183 | ||||||||||
| Consumer | 24,751 | 24,541 | 25,624 | 25,676 | 25,557 | ||||||||||
| Total gross loans | 633,549 | 662,388 | 664,738 | 685,220 | 730,691 | ||||||||||
| Net deferred loan (fees) costs and loans in process | (43 | ) | (380 | ) | 936 | (2,361 | ) | (3,611 | ) | ||||||
| Allowance for loan losses | (8,357 | ) | (8,775 | ) | (8,766 | ) | (9,163 | ) | (9,271 | ) | |||||
| Loans, net | 625,149 | 653,233 | 656,908 | 673,696 | 717,809 | ||||||||||
| Loans held for sale | 5,424 | 4,795 | 8,929 | 10,952 | 13,995 | ||||||||||
| Bank owned life insurance | 32,293 | 32,106 | 31,914 | 31,722 | 25,568 | ||||||||||
| Premises and equipment, net | 20,919 | 20,803 | 20,361 | 20,137 | 20,320 | ||||||||||
| Goodwill | 17,532 | 17,532 | 17,532 | 17,532 | 17,532 | ||||||||||
| Other intangible assets, net | 67 | 84 | 104 | 132 | 168 | ||||||||||
| Mortgage servicing rights | 4,128 | 4,193 | 4,201 | 4,143 | 3,966 | ||||||||||
| Real estate owned, net | 1,288 | 2,551 | 2,578 | 1,385 | 1,474 | ||||||||||
| Other assets | 17,095 | 13,458 | 13,190 | 12,545 | 13,925 | ||||||||||
| Total assets | $ | 1,306,434 | $ | 1,328,968 | $ | 1,254,534 | $ | 1,250,426 | $ | 1,248,875 | |||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing demand | 350,342 | 350,005 | 317,827 | 307,125 | 314,616 | ||||||||||
| Money market and checking | 517,936 | 536,868 | 488,213 | 504,025 | 490,634 | ||||||||||
| Savings | 167,823 | 155,501 | 151,380 | 150,874 | 142,507 | ||||||||||
| Certificates of deposit | 103,464 | 106,107 | 109,267 | 115,739 | 123,489 | ||||||||||
| Total deposits | 1,139,565 | 1,148,481 | 1,066,687 | 1,077,763 | 1,071,246 | ||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | ||||||||||
| Other borrowings | 7,004 | 7,403 | 6,219 | 4,534 | 4,165 | ||||||||||
| Accrued interest and other liabilities | 14,701 | 15,790 | 24,571 | 14,122 | 23,532 | ||||||||||
| Total liabilities | 1,182,921 | 1,193,325 | 1,119,128 | 1,118,070 | 1,120,594 | ||||||||||
| Stockholders' equity: | |||||||||||||||
| Common stock | 50 | 50 | 48 | 48 | 48 | ||||||||||
| Additional paid-in capital | 79,206 | 79,120 | 72,489 | 72,413 | 72,336 | ||||||||||
| Retained earnings | 54,677 | 52,593 | 56,957 | 53,391 | 49,363 | ||||||||||
| Accumulated other comprehensive (loss) income | (10,420 | ) | 3,880 | 5,912 | 6,504 | 6,534 | |||||||||
| Total stockholders' equity | 123,513 | 135,643 | 135,406 | 132,356 | 128,281 | ||||||||||
| Total liabilities and stockholders' equity | $ | 1,306,434 | $ | 1,328,968 | $ | 1,254,534 | $ | 1,250,426 | $ | 1,248,875 |
LANDMARKBANCORP, INC. AND SUBSIDIARIES
ConsolidatedStatements of Earnings (unaudited)
| (Dollars in thousands, except per share amounts) | Three months ended, | ||||||
|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | |||||
| 2022 | 2021 | 2021 | |||||
| Interest income: | |||||||
| Loans | $ | 7,191 | $ | 7,907 | $ | 8,404 | |
| Investment securities: | |||||||
| Taxable | 1,053 | 836 | 811 | ||||
| Tax-exempt | 722 | 737 | 778 | ||||
| Total interest income | 8,966 | 9,480 | 9,993 | ||||
| Interest expense: | |||||||
| Deposits | 195 | 223 | 281 | ||||
| Borrowed funds | 126 | 121 | 121 | ||||
| Total interest expense | 321 | 344 | 402 | ||||
| Net interest income | 8,645 | 9,136 | 9,591 | ||||
| Provision for (reversal of) loan losses | (500 | ) | - | 500 | |||
| Net interest income after provision for loan losses | 9,145 | 9,136 | 9,091 | ||||
| Non-interest income: | |||||||
| Fees and service charges | 2,188 | 2,403 | 2,033 | ||||
| Gains on sales of loans, net | 905 | 1,823 | 3,140 | ||||
| Bank owned life insurance | 187 | 192 | 148 | ||||
| Gains on sales of investment securities, net | - | - | 1,075 | ||||
| Other | 283 | 180 | 329 | ||||
| Total non-interest income | 3,563 | 4,598 | 6,725 | ||||
| Non-interest expense: | |||||||
| Compensation and benefits | 4,775 | 5,061 | 4,941 | ||||
| Occupancy and equipment | 1,233 | 1,214 | 1,062 | ||||
| Data processing | 340 | 525 | 501 | ||||
| Amortization of mortgage servicing rights and other intangibles | 316 | 376 | 437 | ||||
| Professional fees | 451 | 595 | 392 | ||||
| Other | 1,723 | 1,779 | 1,740 | ||||
| Total non-interest expense | 8,838 | 9,550 | 9,073 | ||||
| Earnings before income taxes | 3,870 | 4,184 | 6,743 | ||||
| Income tax expense | 737 | 1,037 | 1,376 | ||||
| Net earnings | $ | 3,133 | $ | 3,147 | $ | 5,367 | |
| Net earnings per share (1) | |||||||
| Basic | $ | 0.63 | $ | 0.63 | $ | 1.08 | |
| Diluted | 0.62 | 0.63 | 1.08 | ||||
| Dividends per share (1) | 0.21 | 0.19 | 0.19 | ||||
| Shares outstanding at end of period (1) | 4,997,459 | 4,997,459 | 4,994,434 | ||||
| Weighted average common shares outstanding - basic (1) | 4,997,459 | 4,997,423 | 4,990,507 | ||||
| Weighted average common shares outstanding - diluted (1) | 5,017,055 | 5,016,327 | 4,997,473 | ||||
| Tax equivalent net interest income | $ | 8,840 | $ | 9,335 | $ | 9,801 | |
| (1) | Share<br> and per share values at or for the periods ended March 31, 2021 have been adjusted to give effect to the 5% stock dividend paid during<br> December 2021. | ||||||
| --- | --- |
LANDMARKBANCORP, INC. AND SUBSIDIARIES
SelectRatios and Other Data (unaudited)
| As of or for the | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share amounts) | three months ended, | ||||||||
| March 31, | December 31, | March 31, | |||||||
| 2022 | 2021 | 2021 | |||||||
| Performance ratios: | |||||||||
| Return on average assets (1) | 0.97 | % | 0.98 | % | 1.77 | % | |||
| Return on average equity (1) | 9.59 | % | 9.25 | % | 17.06 | % | |||
| Net interest margin (1)(2) | 2.99 | % | 3.17 | % | 3.51 | % | |||
| Effective tax rate | 19.0 | % | 24.8 | % | 20.4 | % | |||
| Efficiency ratio (3) | 71.9 | % | 68.3 | % | 59.2 | % | |||
| Non-interest income to total income (3) | 28.5 | % | 33.6 | % | 37.1 | % | |||
| Average balances: | |||||||||
| Investment securities | $ | 421,996 | $ | 383,508 | $ | 301,586 | |||
| Loans | 636,032 | 652,691 | 730,210 | ||||||
| Assets | 1,305,813 | 1,276,079 | 1,230,184 | ||||||
| Interest-bearing deposits | 792,354 | 758,061 | 762,707 | ||||||
| Subordinated debentures and other borrowings | 28,476 | 29,633 | 27,580 | ||||||
| Stockholders' equity | 132,429 | 135,015 | $ | 127,580 | |||||
| Average tax equivalent yield/cost (1): | |||||||||
| Investment securities | 1.83 | % | 1.77 | % | 2.37 | % | |||
| Loans | 4.59 | % | 4.81 | % | 4.67 | % | |||
| Total interest-bearing assets | 3.10 | % | 3.29 | % | 3.66 | % | |||
| Interest-bearing deposits | 0.10 | % | 0.12 | % | 0.15 | % | |||
| Subordinated debentures and other borrowings | 2.30 | % | 2.14 | % | 2.23 | % | |||
| Repurchase agreements | 0.18 | % | 0.20 | % | 0.14 | % | |||
| Total interest-bearing liabilities | 0.16 | % | 0.17 | % | 0.21 | % | |||
| Capital ratios: | |||||||||
| Equity to total assets | 9.45 | % | 10.21 | % | 10.27 | % | |||
| Tangible equity to tangible assets (3) | 8.22 | % | 9.00 | % | 8.98 | % | |||
| Book value per share | $ | 24.72 | $ | 27.14 | $ | 25.68 | |||
| Tangible book value per share (3) | $ | 21.19 | $ | 23.62 | $ | 22.14 | |||
| Rollforward of allowance for loan losses: | |||||||||
| Beginning balance | $ | 8,775 | $ | 8,766 | $ | 8,775 | |||
| Charge-offs | (53 | ) | (70 | ) | (64 | ) | |||
| Recoveries | 135 | 79 | 60 | ||||||
| Provision for loan losses | (500 | ) | - | 500 | |||||
| Ending balance | $ | 8,357 | $ | 8,775 | $ | 9,271 | |||
| Non-performing assets: | |||||||||
| Non-accrual loans | $ | 4,676 | $ | 5,230 | $ | 11,015 | |||
| Accruing loans over 90 days past due | - | - | - | ||||||
| Real estate owned | 1,288 | 2,551 | 1,474 | ||||||
| Total non-performing assets | $ | 5,964 | $ | 7,781 | $ | 12,489 | |||
| Loans 30-89 days delinquent | $ | 846 | $ | 1,990 | $ | 5,025 | |||
| Other ratios: | |||||||||
| Loans to deposits | 54.86 | % | 56.88 | % | 67.01 | % | |||
| Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.13 | % | 0.30 | % | 0.69 | % | |||
| Total non-performing loans to gross loans outstanding | 0.74 | % | 0.79 | % | 1.51 | % | |||
| Total non-performing assets to total assets | 0.46 | % | 0.59 | % | 1.00 | % | |||
| Allowance for loan losses to gross loans outstanding | 1.32 | % | 1.32 | % | 1.27 | % | |||
| Allowance for loan losses to gross loans outstanding excluding PPP loans | 1.33 | % | 1.36 | % | 1.51 | % | |||
| Allowance for loan losses to total non-performing loans | 178.72 | % | 167.78 | % | 84.17 | % | |||
| Net loan charge-offs to average loans (1) | -0.05 | % | -0.01 | % | 0.00 | % | |||
| (1) | Information<br> is annualized. | ||||||||
| --- | --- | ||||||||
| (2) | Net<br> interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate. | ||||||||
| (3) | Non-GAAP<br> financial measures. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most<br> comparable GAAP equivalent. |
LANDMARKBANCORP, INC. AND SUBSIDIARIES
Non-GAAPFinacials Measures (unaudited)
| As of or for the | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share amounts) | three months ended, | ||||||||
| March 31, | December 31, | March 31, | |||||||
| 2022 | 2021 | 2021 | |||||||
| Non-GAAP financial ratio reconciliation: | |||||||||
| Total non-interest expense | $ | 8,838 | $ | 9,550 | $ | 9,073 | |||
| Less: foreclosure and real estate owned expense | (124 | ) | (124 | ) | (11 | ) | |||
| Less: amortization of other intangibles | (17 | ) | (20 | ) | (38 | ) | |||
| Adjusted non-interest expense (A) | 8,697 | 9,406 | 9,024 | ||||||
| Net interest income (B) | 8,645 | 9,136 | 9,591 | ||||||
| Non-interest income | 3,563 | 4,598 | 6,725 | ||||||
| Less: gains on sales of investment securities, net | - | - | (1,075 | ) | |||||
| Less: gains on sales of premises and equipment and foreclosed assets | (114 | ) | 28 | (5 | ) | ||||
| Adjusted non-interest income (C) | $ | 3,449 | $ | 4,626 | $ | 5,645 | |||
| Efficiency ratio (A/(B+C)) | 71.9 | % | 68.3 | % | 59.2 | % | |||
| Non-interest income to total income (C/(B+C)) | 28.5 | % | 33.6 | % | 37.1 | % | |||
| Total stockholders' equity | $ | 123,513 | $ | 135,643 | $ | 128,281 | |||
| Less: goodwill and other intangible assets | (17,599 | ) | (17,616 | ) | (17,700 | ) | |||
| Tangible equity (D) | $ | 105,914 | $ | 118,027 | $ | 110,581 | |||
| Total assets | $ | 1,306,434 | $ | 1,328,968 | $ | 1,248,875 | |||
| Less: goodwill and other intangible assets | (17,599 | ) | (17,616 | ) | (17,700 | ) | |||
| Tangible assets (E) | $ | 1,288,835 | $ | 1,311,352 | $ | 1,231,175 | |||
| Tangible equity to tangible assets (D/E) | 8.22 | % | 9.00 | % | 8.98 | % | |||
| Shares outstanding at end of period (F) | 4,997,459 | 4,997,459 | 4,994,434 | ||||||
| Tangible book value per share (D/F) | $ | 21.19 | $ | 23.62 | $ | 22.14 |