LARK 8-K
Landmark Bancorp Inc (LARK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report
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| Item 2.02. | Results of Operations and Financial Condition. |
On August 5, 2024, Landmark Bancorp, Inc. (the “Company”) issued a press release announcing financial results for the three and six months ended June 30, 2024. 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 August 5, 2024, 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 August 21, 2024 and payable on September 4, 2024.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
99.1 Press Release dated August 5, 2024
104 Cover 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.
| LANDMARK BANCORP, INC | ||
| Dated: August 5, 2024 | By: | /s/ Mark A. Herpich |
| Mark A. Herpich | ||
| Chief Financial Officer |
Exhibit 99.1
PRESS RELEASE
| FOR IMMEDIATE RELEASE | Contact: |
| August 5, 2024 | Mark A. Herpich |
| Chief Financial Officer | |
| (785) 565-2000 |
Landmark Bancorp, Inc. Announces Second Quarter Earnings Per Share of $0.55
Declares Cash Dividend of $0.21 per Share
(Manhattan, KS, August 5, 2024) – Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.55 for the three months ended June 30, 2024, compared to $0.51 per share in the first quarter of 2024 and $0.61 per share in the same quarter last year. Net earnings for the second quarter of 2024 amounted to $3.0 million, compared to $2.8 million in the prior quarter and $3.4 million for the second quarter of 2023. For the three months ended June 30, 2024, the return on average assets was 0.78%, the return on average equity was 9.72%, and the efficiency ratio was 67.9%.
For the first six months of 2024, diluted earnings per share totaled $1.06 compared to $1.23 during the same period in 2023. Net earnings for the six months of 2024 totaled $5.8 million, compared to $6.7 million in the first six months of 2023. For the six months ended June 30, 2024, the return on average assets was 0.75%, the return on average equity was 9.30%, and the efficiency ratio was 70.0%.
In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, said, “During the second quarter, we continued to see good growth in loans coupled with solid credit quality. Also, both our net interest income and our fee-based income grew nicely this quarter. During the second quarter 2024, non-interest expense grew by $544,000 but included a $979,000 valuation adjustment on a former branch facility that is currently under contract to be sold. Excluding these adjustments, non-interest expense would have declined by $306,000, or 2.9% from the prior quarter. This quarter total loans grew $16.5 million, or 6.9% annualized, driven mainly by strong growth in residential mortgage and construction loans. Additionally, net interest income grew 2.1%, to $11.0 million, as higher interest on loans exceeded interest costs on deposits and our net interest margin expanded by nine basis points and totaled 3.21%. Non-interest income also increased $320,000 over the prior quarter mainly due to higher fees and service charges along with higher gains on sales of mortgage loans. Excluding a decline in brokered deposits on the last day of the quarter, deposit balances were stable during the second quarter while average interest-bearing deposits increased slightly from the prior quarter.”
Ms. Wendel continued, “Loan credit quality remains excellent. Landmark recorded net loan recoveries of $52,000 in the second quarter of 2024 compared to net loan charge-offs of $7,000 in the first quarter of 2024 and $68,000 in the second quarter of 2023. The ratio of net loan charge-offs to loans remains low. No provision for credit losses was recorded in the second quarter 2024. Non-accrual loans totaled $5.0 million, or 0.51%, of gross loans at June 30, 2024 while the balance of loans past due 30 to 89 days totaled $1.9 million, or 0.19%, of gross loans at June 30, 2024. The allowance for credit losses totaled $10.9 million at June 30, 2024, or 1.11% of period end gross loans. At the end of the second quarter 2024 our equity to assets ratio grew to 8.22% while our loans to deposits ratio totaled 77.5% and reflects strong liquidity for future loan growth.”
Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid September 4, 2024, to common stockholders of record as of the close of business on August 21, 2024.
Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Tuesday, August 6, 2024. Investors may participate via telephone by dialing (833) 470-1428 and using access code 974885. A replay of the call will be available through September 5, 2024, by dialing (866) 813-9403 and using access code 416026.
SUMMARY OF SECOND QUARTER RESULTS
Net earnings in the second quarter of 2024 increased 8.4% to $3.0 million compared to the first quarter 2024 but decreased $350,000 from the same period last year. As previously mentioned, the current quarter included a valuation adjustment on a former branch under a sales contract which after tax reduced net income by $739,000, or $0.14 per share. During the second quarter, loans grew 6.9% annualized, and both net interest income and non-interest income increased over the first quarter. Non-interest expense, excluding the valuation adjustment, declined and no provision for credit losses was taken.
Net Interest Income
Net interest income in the second quarter of 2024 amounted to $11.0 million representing an increase of $227,000, or 2.1%, compared to the previous quarter. The increase in net interest income was due mainly to growth in interest income on loans, but partially offset by higher interest expense on deposits. The net interest margin increased to 3.21% during the second quarter from 3.12% during the prior quarter. Compared to the previous quarter, interest income on loans increased $532,000, or 3.7%, to $15.0 million due to both higher average balances and rates. The average tax-equivalent yield on the loan portfolio increased 17 basis points to 6.33%. Interest expense on deposits increased $216,000, or 4.0%, in the second quarter 2024, compared to the prior quarter, mainly due to higher rates on interest-bearing deposits. The average rate on interest-bearing deposits increased in the second quarter to 2.44% compared to 2.35% in the prior quarter. Interest on borrowed funds declined slightly due to a small decline in average balances.
Non-Interest Income
Non-interest income totaled $3.7 million for the second quarter of 2024, an increase of $320,000, or 9.4%, from the previous quarter. The increase in non-interest income compared to the first quarter of 2024 was primarily the result of increases of $230,000 in fees and service charges and $136,000 in gains on sales of one-to-four family residential real estate loans.
Non-Interest Expense
During the second quarter of 2024, non-interest expense totaled $11.1 million, an increase of $544,000, or 5.2%, compared to the prior quarter. As mentioned above, the increase in non-interest expense this quarter was primarily related to a valuation allowance of $979,000 recorded on a former branch facility that is currently under contract to be sold. A valuation allowance of $129,000 on this facility was also recorded in the first quarter of 2024. Excluding these valuation allowances, non-interest expense totaled $10.1 million in the second quarter of 2024 compared to $10.4 million in the first quarter of 2024, a decline of $306,000, or 2.9%. Compensation and benefits, occupancy and equipment and amortization of mortgage servicing rights and other intangibles were all lower this quarter.
Income Tax Expense
Landmark recorded income tax expense of $587,000 in the second quarter of 2024 compared to $518,000 in the prior quarter. The effective tax rate was 16.3% in the second quarter of 2024 compared to 15.7% in the first quarter of 2024. The increase in the effective tax rate was primarily due to higher earnings before taxes as tax-exempt income was consistent between the periods.
Balance Sheet Highlights
As of June 30, 2024, gross loans totaled $980.6 million, an increase of $16.5 million, or 6.9% annualized since March 31, 2024. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $19.3 million) and construction and land (growth of $5.7 million) loans. The increase in one-to-four family residential real estate loans is primarily related to continued demand for adjustable-rate mortgage loans which are retained in our portfolio. Investment securities decreased $16.8 million during the second quarter of 2024, while pre-tax unrealized net losses on these investment securities increased slightly from $24.4 million at March 31, 2024 to $24.8 million at June 30, 2024.
Period end deposit balances decreased $43.0 million to $1.3 billion at June 30, 2024. The decrease in deposits was mainly driven by declines in money market and checking (decrease of $36.9 million) non-interest-bearing demand (decrease of $3.8 million) and savings (decrease of $3.0 million) in the second quarter. The decrease in money market and checking accounts was mainly driven by a decline in brokered deposits on the last day of the quarter. Average interest-bearing deposits increased slightly this quarter compared to the first quarter. Total borrowings increased $49.5 million during the second quarter 2024. The increase was due to increased borrowing on our FHLB line of credit which was primarily related to the decline in brokered deposits. Average borrowings, including FHLB advances and repurchase agreements decreased $2.6 million this quarter compared to the first quarter. At June 30, 2024, the loan to deposits ratio was 77.5% compared to 73.6% in the prior quarter.
Stockholders’ equity increased to $128.3 million (book value of $23.45 per share) as of June 30, 2024, from $126.7 million (book value of $23.14 per share) as of March 31, 2024. The ratio of equity to total assets increased to 8.22% on June 30, 2024, from 8.16% on March 31, 2024.
The allowance for credit losses totaled $10.9 million, or 1.11% of total gross loans on June 30, 2024, compared to $10.9 million, or 1.13% of total gross loans on March 31, 2024. Net loan recoveries totaled $52,000 in the second quarter of 2024, compared to net loan charge-offs of $7,000 during the first quarter of 2024. No provision for credit losses was recorded in the second quarter of 2024 compared to a provision for credit losses of $300,000 in the first quarter of 2024.
Non-performing loans totaled $5.0 million, or 0.51% of gross loans at June 30, 2024 compared to $3.6 million, or 0.38% of gross loans at March 31, 2024. Loans 30-89 days delinquent totaled $1.9 million, or 0.19% of gross loans, as of June 30, 2024, compared to $3.9 million, or 0.42% of gross loans, as of March 31, 2024. Foreclosed real estate owned totaled $428,000 at June 30, 2024.
About Landmark
Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 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 strength of the local, national and international economies, including the effects of inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including any changes in response to the recent failures of other banks; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of rate changes, if any, by the Federal Reserve; (x) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
| (Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 23,889 | $ | 16,468 | $ | 27,101 | $ | 23,821 | $ | 20,038 | ||||||||||
| Interest-bearing deposits at other banks | 4,881 | 4,920 | 4,918 | 5,904 | 8,336 | |||||||||||||||
| Investment securities available-for-sale, at fair value: | ||||||||||||||||||||
| U.S. treasury securities | 89,325 | 93,683 | 95,667 | 118,341 | 121,480 | |||||||||||||||
| Municipal obligations, tax exempt | 114,047 | 118,445 | 120,623 | 115,706 | 124,451 | |||||||||||||||
| Municipal obligations, taxable | 74,588 | 75,371 | 79,083 | 73,993 | 77,713 | |||||||||||||||
| Agency mortgage-backed securities | 142,499 | 149,777 | 157,396 | 148,817 | 160,734 | |||||||||||||||
| Total investment securities available-for-sale | 420,459 | 437,276 | 452,769 | 456,857 | 484,378 | |||||||||||||||
| Investment securities held-to-maturity | 3,613 | 3,584 | 3,555 | 3,525 | 3,496 | |||||||||||||||
| Bank stocks, at cost | 9,647 | 7,850 | 8,123 | 8,009 | 9,445 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| One-to-four family residential real estate | 332,090 | 312,833 | 302,544 | 289,571 | 259,655 | |||||||||||||||
| Construction and land | 30,480 | 24,823 | 21,090 | 21,657 | 22,016 | |||||||||||||||
| Commercial real estate | 318,850 | 323,397 | 320,962 | 323,427 | 314,889 | |||||||||||||||
| Commercial | 178,876 | 181,945 | 180,942 | 185,831 | 181,424 | |||||||||||||||
| Agriculture | 84,523 | 86,808 | 89,680 | 84,560 | 84,345 | |||||||||||||||
| Municipal | 6,556 | 5,690 | 4,507 | 3,200 | 2,711 | |||||||||||||||
| Consumer | 29,200 | 28,544 | 28,931 | 29,180 | 28,219 | |||||||||||||||
| Total gross loans | 980,575 | 964,040 | 948,656 | 937,426 | 893,259 | |||||||||||||||
| Net deferred loan (fees) costs and loans in process | (583 | ) | (578 | ) | (429 | ) | (396 | ) | (261 | ) | ||||||||||
| Allowance for credit losses | (10,903 | ) | (10,851 | ) | (10,608 | ) | (10,970 | ) | (10,449 | ) | ||||||||||
| Loans, net | 969,089 | 952,611 | 937,619 | 926,060 | 882,549 | |||||||||||||||
| Loans held for sale, at fair value | 2,513 | 2,697 | 853 | 1,857 | 3,900 | |||||||||||||||
| Bank owned life insurance | 38,826 | 38,578 | 38,333 | 38,090 | 37,764 | |||||||||||||||
| Premises and equipment, net | 20,986 | 20,696 | 19,709 | 23,911 | 24,027 | |||||||||||||||
| Goodwill | 32,377 | 32,377 | 32,377 | 32,377 | 32,199 | |||||||||||||||
| Other intangible assets, net | 2,900 | 3,071 | 3,241 | 3,414 | 3,612 | |||||||||||||||
| Mortgage servicing rights | 2,997 | 2,977 | 3,158 | 3,368 | 3,514 | |||||||||||||||
| Real estate owned, net | 428 | 428 | 928 | 934 | 934 | |||||||||||||||
| Other assets | 28,149 | 29,684 | 28,988 | 29,459 | 25,148 | |||||||||||||||
| Total assets | $ | 1,560,754 | $ | 1,553,217 | $ | 1,561,672 | $ | 1,557,586 | $ | 1,539,340 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing demand | 360,631 | 364,386 | 367,103 | 395,046 | 382,410 | |||||||||||||||
| Money market and checking | 546,385 | 583,315 | 613,613 | 586,651 | 606,474 | |||||||||||||||
| Savings | 150,996 | 154,000 | 152,381 | 157,112 | 160,426 | |||||||||||||||
| Certificates of deposit | 192,470 | 191,823 | 183,154 | 169,225 | 131,661 | |||||||||||||||
| Total deposits | 1,250,482 | 1,293,524 | 1,316,251 | 1,308,034 | 1,280,971 | |||||||||||||||
| FHLB and other borrowings | 131,330 | 74,716 | 64,662 | 82,569 | 84,520 | |||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||
| Repurchase agreements | 8,745 | 15,895 | 12,714 | 12,590 | 13,958 | |||||||||||||||
| Accrued interest and other liabilities | 20,292 | 20,760 | 19,480 | 23,185 | 20,887 | |||||||||||||||
| Total liabilities | 1,432,500 | 1,426,546 | 1,434,758 | 1,448,029 | 1,421,987 | |||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||||
| Common stock | 55 | 55 | 55 | 52 | 52 | |||||||||||||||
| Additional paid-in capital | 89,469 | 89,364 | 89,208 | 84,568 | 84,475 | |||||||||||||||
| Retained earnings | 57,774 | 55,912 | 54,282 | 57,280 | 55,498 | |||||||||||||||
| Treasury stock, at cost | (330 | ) | (249 | ) | (75 | ) | - | - | ||||||||||||
| Accumulated other comprehensive (loss) income | (18,714 | ) | (18,411 | ) | (16,556 | ) | (32,343 | ) | (22,672 | ) | ||||||||||
| Total stockholders’ equity | 128,254 | 126,671 | 126,914 | 109,557 | 117,353 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,560,754 | $ | 1,553,217 | $ | 1,561,672 | $ | 1,557,586 | $ | 1,539,340 | ||||||||||
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)
| (Dollars in thousands, except per share amounts) | Three months ended, | Six months ended, | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 15,022 | $ | 14,490 | $ | 12,623 | $ | 29,512 | $ | 23,999 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable | 2,359 | 2,428 | 2,379 | 4,787 | 4,696 | |||||||||||||||
| Tax-exempt | 759 | 764 | 775 | 1,523 | 1,561 | |||||||||||||||
| Interest-bearing deposits at banks | 40 | 63 | 49 | 103 | 147 | |||||||||||||||
| Total interest income | 18,180 | 17,745 | 15,826 | 35,925 | 30,403 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 5,673 | 5,457 | 3,452 | 11,130 | 5,991 | |||||||||||||||
| FHLB and other borrowings | 1,027 | 1,022 | 1,027 | 2,049 | 1,594 | |||||||||||||||
| Subordinated debentures | 418 | 412 | 387 | 830 | 751 | |||||||||||||||
| Repurchase agreements | 88 | 107 | 127 | 195 | 287 | |||||||||||||||
| Total interest expense | 7,206 | 6,998 | 4,993 | 14,204 | 8,623 | |||||||||||||||
| Net interest income | 10,974 | 10,747 | 10,833 | 21,721 | 21,780 | |||||||||||||||
| Provision for credit losses | - | 300 | 250 | 300 | 299 | |||||||||||||||
| Net interest income after provision for credit losses | 10,974 | 10,447 | 10,583 | 21,421 | 21,481 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Fees and service charges | 2,691 | 2,461 | 2,481 | 5,152 | 4,839 | |||||||||||||||
| Gains on sales of loans, net | 648 | 512 | 830 | 1,160 | 1,523 | |||||||||||||||
| Bank owned life insurance | 248 | 245 | 223 | 493 | 441 | |||||||||||||||
| Other | 133 | 182 | 295 | 315 | 521 | |||||||||||||||
| Total non-interest income | 3,720 | 3,400 | 3,829 | 7,120 | 7,324 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Compensation and benefits | 5,504 | 5,532 | 5,572 | 11,036 | 11,114 | |||||||||||||||
| Occupancy and equipment | 1,294 | 1,390 | 1,394 | 2,684 | 2,763 | |||||||||||||||
| Data processing | 492 | 481 | 431 | 973 | 1,020 | |||||||||||||||
| Amortization of mortgage servicing rights and other intangibles | 256 | 412 | 472 | 668 | 933 | |||||||||||||||
| Professional fees | 649 | 647 | 607 | 1,296 | 1,098 | |||||||||||||||
| Valuation allowance on real estate held for sale | 979 | 129 | - | 1,108 | - | |||||||||||||||
| Other | 1,921 | 1,960 | 1,873 | 3,881 | 3,764 | |||||||||||||||
| Total non-interest expense | 11,095 | 10,551 | 10,349 | 21,646 | 20,692 | |||||||||||||||
| Earnings before income taxes | 3,599 | 3,296 | 4,063 | 6,895 | 8,113 | |||||||||||||||
| Income tax expense | 587 | 518 | 701 | 1,105 | 1,394 | |||||||||||||||
| Net earnings | $ | 3,012 | $ | 2,778 | $ | 3,362 | $ | 5,790 | $ | 6,719 | ||||||||||
| Net earnings per share (1) | ||||||||||||||||||||
| Basic | $ | 0.55 | $ | 0.51 | $ | 0.61 | $ | 1.06 | $ | 1.23 | ||||||||||
| Diluted | 0.55 | 0.51 | 0.61 | 1.06 | 1.23 | |||||||||||||||
| Dividends per share (1) | 0.21 | 0.21 | 0.20 | 0.42 | 0.40 | |||||||||||||||
| Shares outstanding at end of period (1) | 5,469,566 | 5,473,867 | 5,476,354 | 5,469,566 | 5,476,354 | |||||||||||||||
| Weighted average common shares outstanding - basic (1) | 5,471,724 | 5,469,954 | 5,476,354 | 5,470,839 | 5,475,075 | |||||||||||||||
| Weighted average common shares outstanding - diluted (1) | 5,474,336 | 5,474,852 | 5,480,528 | 5,474,602 | 5,480,748 | |||||||||||||||
| Tax equivalent net interest income | $ | 11,167 | $ | 10,925 | $ | 11,021 | $ | 22,075 | $ | 22,165 | ||||||||||
(1) Share and per share values at or for the period ended June 30, 2023 have been adjusted to give effect to the 5% stock dividend paid during December 2023.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)
| (Dollars in thousands, except per share amounts) | As of or for the three months ended, | As of or for the six months ended, | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Performance ratios: | ||||||||||||||||||||
| Return on average assets (1) | 0.78 | % | 0.72 | % | 0.88 | % | 0.75 | % | 0.89 | % | ||||||||||
| Return on average equity (1) | 9.72 | % | 8.88 | % | 11.52 | % | 9.30 | % | 11.77 | % | ||||||||||
| Net interest margin (1)(2) | 3.21 | % | 3.12 | % | 3.21 | % | 3.16 | % | 3.26 | % | ||||||||||
| Effective tax rate | 16.3 | % | 15.7 | % | 17.3 | % | 16.0 | % | 17.2 | % | ||||||||||
| Efficiency ratio (3) | 67.9 | % | 72.1 | % | 69.2 | % | 70.0 | % | 69.7 | % | ||||||||||
| Non-interest income to total income (3) | 25.3 | % | 24.1 | % | 26.1 | % | 24.7 | % | 25.2 | % | ||||||||||
| Average balances: | ||||||||||||||||||||
| Investment securities | $ | 437,136 | $ | 456,933 | $ | 495,456 | $ | 447,034 | $ | 497,486 | ||||||||||
| Loans | 955,104 | 945,737 | 873,910 | 950,420 | 862,186 | |||||||||||||||
| Assets | 1,545,816 | 1,555,662 | 1,525,589 | 1,550,739 | 1,518,373 | |||||||||||||||
| Interest-bearing deposits | 936,237 | 935,417 | 882,726 | 935,827 | 877,841 | |||||||||||||||
| FHLB and other borrowings | 72,875 | 72,618 | 77,176 | 72,747 | 61,285 | |||||||||||||||
| Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||
| Repurchase agreements | 11,524 | 14,371 | 16,909 | 12,947 | 22,199 | |||||||||||||||
| Stockholders’ equity | $ | 124,624 | $ | 125,846 | $ | 117,038 | $ | 125,235 | $ | 115,087 | ||||||||||
| Average tax equivalent yield/cost (1): | ||||||||||||||||||||
| Investment securities | 3.04 | % | 2.96 | % | 2.70 | % | 2.99 | % | 2.69 | % | ||||||||||
| Loans | 6.33 | % | 6.16 | % | 5.80 | % | 6.25 | % | 5.62 | % | ||||||||||
| Total interest-bearing assets | 5.29 | % | 5.11 | % | 4.66 | % | 5.20 | % | 4.53 | % | ||||||||||
| Interest-bearing deposits | 2.44 | % | 2.35 | % | 1.57 | % | 2.39 | % | 1.38 | % | ||||||||||
| FHLB and other borrowings | 5.67 | % | 5.66 | % | 5.34 | % | 5.66 | % | 5.25 | % | ||||||||||
| Subordinated debentures | 7.76 | % | 7.65 | % | 7.17 | % | 7.71 | % | 6.99 | % | ||||||||||
| Repurchase agreements | 3.07 | % | 2.99 | % | 3.01 | % | 3.03 | % | 2.61 | % | ||||||||||
| Total interest-bearing liabilities | 2.78 | % | 2.70 | % | 2.01 | % | 2.74 | % | 1.77 | % | ||||||||||
| Capital ratios: | ||||||||||||||||||||
| Equity to total assets | 8.22 | % | 8.16 | % | 7.62 | % | ||||||||||||||
| Tangible equity to tangible assets (3) | 6.09 | % | 6.01 | % | 5.42 | % | ||||||||||||||
| Book value per share | $ | 23.45 | $ | 23.14 | $ | 21.43 | ||||||||||||||
| Tangible book value per share (3) | $ | 17.00 | $ | 16.67 | $ | 14.89 | ||||||||||||||
| Rollforward of allowance for credit losses (loans): | ||||||||||||||||||||
| Beginning balance | $ | 10,851 | $ | 10,608 | $ | 10,267 | $ | 10,608 | $ | 8,791 | ||||||||||
| Adoption of CECL | - | - | - | - | 1,523 | |||||||||||||||
| Charge-offs | (119 | ) | (141 | ) | (158 | ) | (260 | ) | (266 | ) | ||||||||||
| Recoveries | 171 | 134 | 90 | 305 | 151 | |||||||||||||||
| Provision for credit losses for loans | - | 250 | 250 | 250 | 250 | |||||||||||||||
| Ending balance | $ | 10,903 | $ | 10,851 | $ | 10,449 | $ | 10,903 | $ | 10,449 | ||||||||||
| Allowance for unfunded loan commitments | $ | 300 | $ | 300 | $ | 200 | ||||||||||||||
| Non-performing assets: | ||||||||||||||||||||
| Non-accrual loans | $ | 5,007 | $ | 3,621 | $ | 2,784 | ||||||||||||||
| Accruing loans over 90 days past due | - | - | - | |||||||||||||||||
| Real estate owned | 428 | 428 | 934 | |||||||||||||||||
| Total non-performing assets | $ | 5,435 | $ | 4,049 | $ | 3,718 | ||||||||||||||
| Loans 30-89 days delinquent | $ | 1,872 | $ | 4,064 | $ | 614 | ||||||||||||||
| Other ratios: | ||||||||||||||||||||
| Loans to deposits | 77.50 | % | 73.64 | % | 68.90 | % | ||||||||||||||
| Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.19 | % | 0.42 | % | 0.07 | % | ||||||||||||||
| Total non-performing loans to gross loans outstanding | 0.51 | % | 0.38 | % | 0.31 | % | ||||||||||||||
| Total non-performing assets to total assets | 0.35 | % | 0.26 | % | 0.24 | % | ||||||||||||||
| Allowance for credit losses to gross loans outstanding | 1.11 | % | 1.13 | % | 1.17 | % | ||||||||||||||
| Allowance for credit losses to total non-performing loans | 217.76 | % | 299.67 | % | 375.32 | % | ||||||||||||||
| Net loan charge-offs to average loans (1) | -0.02 | % | 0.00 | % | 0.03 | % | 0.00 | % | 0.01 | % | ||||||||||
(1) Information is annualized.
(2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)
| (Dollars in thousands, except per share amounts) | As of or for the three months ended, | As of or for the six months ended, | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Non-GAAP financial ratio reconciliation: | ||||||||||||||||||||
| Total non-interest expense | $ | 11,095 | $ | 10,551 | $ | 10,349 | $ | 21,646 | $ | 20,692 | ||||||||||
| Less: foreclosure and real estate owned expense | 39 | (50 | ) | (3 | ) | (11 | ) | (20 | ) | |||||||||||
| Less: amortization of other intangibles | (171 | ) | (170 | ) | (198 | ) | (341 | ) | (395 | ) | ||||||||||
| Less: valuation allowance on real estate held for sale | (979 | ) | (129 | ) | - | (1,108 | ) | - | ||||||||||||
| Adjusted non-interest expense (A) | 9,984 | 10,202 | 10,148 | 20,186 | 20,277 | |||||||||||||||
| Net interest income (B) | 10,974 | 10,747 | 10,833 | 21,721 | 21,780 | |||||||||||||||
| Non-interest income | 3,720 | 3,400 | 3,829 | 7,120 | 7,324 | |||||||||||||||
| Less: losses (gains) on sales of investment securities, net | - | - | - | - | - | |||||||||||||||
| Less: gains on sales of premises and equipment and foreclosed assets | - | 9 | - | 9 | (1 | ) | ||||||||||||||
| Adjusted non-interest income (C) | $ | 3,720 | $ | 3,409 | $ | 3,829 | $ | 7,129 | $ | 7,323 | ||||||||||
| Efficiency ratio (A/(B+C)) | 67.9 | % | 72.1 | % | 69.2 | % | 70.0 | % | 69.7 | % | ||||||||||
| Non-interest income to total income (C/(B+C)) | 25.3 | % | 24.1 | % | 26.1 | % | 24.7 | % | 25.2 | % | ||||||||||
| Total stockholders’ equity | $ | 128,254 | $ | 126,671 | $ | 117,353 | ||||||||||||||
| Less: goodwill and other intangible assets | (35,277 | ) | (35,448 | ) | (35,811 | ) | ||||||||||||||
| Tangible equity (D) | $ | 92,977 | $ | 91,223 | $ | 81,542 | ||||||||||||||
| Total assets | $ | 1,560,754 | $ | 1,553,217 | $ | 1,539,340 | ||||||||||||||
| Less: goodwill and other intangible assets | (35,277 | ) | (35,448 | ) | (35,811 | ) | ||||||||||||||
| Tangible assets (E) | $ | 1,525,477 | $ | 1,517,769 | $ | 1,503,529 | ||||||||||||||
| Tangible equity to tangible assets (D/E) | 6.09 | % | 6.01 | % | 5.42 | % | ||||||||||||||
| Shares outstanding at end of period (F) | 5,469,566 | 5,473,867 | 5,476,354 | |||||||||||||||||
| Tangible book value per share (D/F) | $ | 17.00 | $ | 16.67 | $ | 14.89 | ||||||||||||||