Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted
earnings per share of $0.61 for the three months ended June 30,
2022, compared to $0.62 per share in the first quarter of 2022 and
$0.99 per share in the same quarter last year. Net earnings for the
second quarter of 2022 amounted to $3.0 million, compared to $3.1
million in the prior quarter and $5.0 million for the second
quarter of 2021. For the three months ended June 30, 2022, the
return on average assets was 0.93%, the return on average equity
was 10.04%, and the efficiency ratio was 69.1%.
For the first six months of 2022, diluted
earnings per share totaled $1.23 compared to $2.07 during the same
period of 2021. Net earnings for the six months of 2022 amounted to
$6.2 million, compared to $10.3 million in the first six months of
2021. For the six months ended June 30, 2022, the return on average
assets was 0.95% and the return on average equity was 9.81%.
In announcing these results, Michael E.
Scheopner, President and Chief Executive Officer of Landmark, said,
“Despite continued economic uncertainties and an increasing
interest rate environment, in the second quarter 2022 we saw strong
loan growth along with increased net interest income, higher fees
and service charges and increased gains on sales of residential
real estate loans. Compared to the first quarter 2022, total gross
loans increased by $36.4 million while net interest income grew by
$253,000 or 2.9%. Fees and service charges also increased by
$227,000 while gains on sales of loans increased $168,000. The
growth in loans was mainly due to increased customer demand for
both commercial and commercial real estate loans coupled with
higher originations of variable rate residential mortgage loans.
During the second quarter 2022, Paycheck Protection Program (PPP)
loans declined $4.6 million and totaled $652,000 at June 30, 2022.
The increase in net interest income this quarter over the prior
quarter was the result of higher interest on investment securities
offset by a slight decline in loan interest and increased interest
expense. Non-interest expense remained well controlled totaling
$9.0 million in the second quarter 2022 and included $221,000 in
costs associated with our announced acquisition of Freedom
Bancshares, Inc. Total deposits declined slightly this quarter but
have increased by $53.7 million, or 5.0% as compared to June 30,
2021. Overall, deposit costs remain low.”
Mr. Scheopner continued, “Credit quality remains
strong as Landmark recorded net loan charge-offs of $42,000 in the
second quarter of 2022 compared to net loan recoveries of $82,000
in the prior quarter and net loan charge-offs of $108,000 in the
second quarter of 2021. Non-accrual loans totaled $4.9 million or
0.73% of gross loans at June 30, 2022 and have declined $8.4
million over the last twelve months. Also, the balance of loans
past due 30 to 89 days remained low. The allowance for loan losses
totaled $8.3 million at June 30, 2022, or 1.24% of period end
loans. Our equity to assets ratio totaled 9.08% while loans to
deposits totaled 58.5%. 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.”
Total assets at June 30, 2022 were $1.3 billion,
total gross loans were $669.9 million and total deposits were $1.1
billion. On June 28, 2022, Landmark announced plans to acquire
Freedom Bancshares, Inc. a one-bank holding company with loans of
$131.6 million and deposits of $169.1 million. Freedom Bank is
located in Overland Park, Kansas and will expand Landmark’s
presence in the Kansas City market. It is expected that this
transaction will be completed in the fourth quarter of 2022. Also
this quarter the Company purchased 21,115 shares of treasury
stock.
Landmark’s Board of Directors declared a cash
dividend of $0.21 per share, to be paid August 24, 2022, to common
stockholders of record as of the close of business on August 10,
2022. Management will host a conference call to discuss the
Company’s financial results at 10:00 a.m. (Central time) on
Wednesday, July 27, 2022. Investors may participate via telephone
by dialing (844) 200-6205 and using access code 665174. A replay of
the call will be available through August 26, 2022, by dialing
(866) 813-9403 and using access code 005230.
SUMMARY OF SECOND QUARTER RESULTS
Net Interest Income
Net interest income amounted to $8.9 million for
the three months ended June 30, 2022, compared to $10.0 million in
the same period last year and $8.6 million in the first quarter of
2022. The decrease of $1.1 million, or 10.8%, from the second
quarter of 2022 was primarily the result of a decrease in interest
on loans, which declined $1.7 million or 19.0%. This decrease was
mainly due to lower interest and fees earned on PPP loans which
declined by $2.0 million from the second quarter 2021. Net interest
income, however, increased $253,000 from the first quarter 2022 due
mainly to higher interest on investment securities but slightly
lower loan interest. The average tax-equivalent yield on the loan
portfolio was 4.40% in the second quarter of 2022 compared to 5.00%
in the same quarter last year and 4.59% in the prior quarter.
Interest costs on interest-bearing deposits totaled 0.18% in the
second quarter of 2022, 0.14% in the second quarter of 2021 and
0.10% in the prior quarter. On a tax-equivalent basis, the net
interest margin totaled 3.05% in the second quarter of 2022,
compared to 2.99% in the prior quarter and 3.54% in the second
quarter of 2021.
Non-Interest Income
Non-interest income totaled $3.8 million for the
second quarter of 2022, a decrease of $1.7 million, or 30.6%,
compared to the same period last year and an increase of $233,000,
or 6.5% from the previous quarter. The decrease in non-interest
income during the second quarter of 2022 compared to the same
period last year was primarily due to a decrease of $1.8 million in
gains on sales of one-to-four family residential real estate loans
as higher interest rates and low housing inventories reduced
originations of these loan which are normally sold. Higher mortgage
rates however did result in increased originations of
adjustable-rate loans this quarter which are kept in the Company’s
loan portfolio. Fees and service charges increased $227,000, or
10.5%, compared to the same quarter last year and were $192,000
higher than in the prior quarter.
Non-Interest Expense
During the second quarter of 2022, non-interest
expense totaled $9.0 million, a decrease of $168,000, or 1.8% over
the same period last year and an increase of $184,000, or 2.1% from
the prior quarter. The decrease in non-interest expense in the
second quarter of 2022 compared to the same period last year was
mainly due to lower data process fees, reduced mortgage servicing
rights amortization and a decline in compensation and benefits and
other non-interest expense. The decline in data processing fees was
due to a new contract with the Company’s main technology vendor in
effect this year while lower mortgage banking activity this quarter
resulted in lower costs for compensation, amortization and other
non-interest expense. Compared to the prior quarter, non-interest
expense increased by 2.1% mainly due to costs of $221,000 related
to the recently announced acquisition of Freedom Bancshares, Inc.
and its wholly owned subsidiary Freedom Bank.
Income Tax Expense
Landmark recorded income tax expense of $639,000
in the second quarter of 2022 compared to $1.3 million in the
second quarter of 2021 and $737,000 in the first quarter of 2022.
The effective tax rate decreased to 17.4% in the second quarter of
2022 compared to 20.5% in the second quarter of 2021 and 19.0% in
the first quarter of 2022, primarily due to lower pretax
earnings.
Balance Sheet Highlights
As of June 30, 2022, gross loans totaled $669.9
million, an increase of $36.4 million since March 31, 2022. The
balance of PPP loans totaled $652,000 at June 30, 2022 compared to
$5.2 million at March 31, 2022. Excluding these loans, gross loans
increased $40.9 million, or 26.1% annualized, during the second
quarter of 2022, primarily due to increases of $23.0 million in
one-to-four family residential real estate, $13.1 million in
commercial real estate and $10.7 million in commercial loans.
Compared to March 31, 2022, investment securities increased $19.7
million to $486.6 million as of June 30, 2020, while deposits
decreased $8.1 million to $1.1 billion. At June 30, 2022 the loan
to deposits ratio was 58.5% compared to 54.9% in the prior quarter
and 62.5% in the same period last year.
Stockholders’ equity decreased to $117.3 million
(book value of $23.57 per share) as of June 30, 2022, from $123.5
million (book value of $24.72 per share) as of March 31, 2022, due
mainly to an increase in other comprehensive losses and the
purchase of treasury stock. The increase in other comprehensive
losses this quarter resulted from higher interest rates which
increased unrealized losses on the Company’s investment securities
portfolio. The ratio of equity to total assets decreased to 9.08%
on June 30, 2022, from 9.45% at March 31, 2022.
The allowance for loan losses totaled $8.3
million, or 1.24% of total gross loans (excluding PPP loans) on
June 30, 2022, compared to $8.4 million, or 1.33% of total gross
loans (excluding PPP loans) on March 31, 2022. No allowance for
loan losses has been allocated to PPP loans because they are
guaranteed by the SBA. Net loan charge-offs totaled $42,000 in the
second quarter of 2022, compared to net loan charge-offs of
$108,000 during the same quarter last year and net loan recoveries
of $82,000 during the first quarter of 2022. The ratio of
annualized net loan charge-offs to total average loans was 0.03% in
the second quarter of 2022, 0.06% in the second quarter of last
year and -0.05% in the prior quarter. No provision for loan losses
was recorded in the second quarter of 2022 and 2021. A credit
provision for loan losses of $500,000 was made in the first quarter
2022 due to the decline in loan balances.
During the second quarter of 2022,
non-performing loans totaled $4.9 million, or 0.73% of gross loans,
while loans 30-89 days delinquent totaled $877,000, or 0.13% of
gross loans, as of June 30, 2022. Real estate owned totaled $1.3
million at June 30, 2022.
About Landmark
Landmark Bancorp, Inc., the holding company for
Landmark National Bank, is listed on the Nasdaq Global Market under
the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark
National Bank is a community banking organization dedicated to
providing quality financial and banking services. Landmark National
Bank has 30 locations in 24 communities across Kansas: Manhattan
(2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great
Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse,
Lawrence (2), Lenexa, Louisburg, Mound City, Osage City,
Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village,
Topeka (2), Wamego and Wellsville, Kansas. Visit
www.banklandmark.com for more information.
Special Note Concerning Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results
of operations, plans, objectives, future performance and business
of Landmark. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of our management and on
information currently available to management, are generally
identifiable by the use of words such as “believe,” “expect,”
“anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,”
“could,” “should” or other similar expressions. Additionally, all
statements in this press release, including forward-looking
statements, speak only as of the date they are made, and Landmark
undertakes no obligation to update any statement in light of new
information or future events. A number of factors, many of which
are beyond our ability to control or predict, could cause actual
results to differ materially from those in our forward-looking
statements. These factors include, among others, the following: (i)
the effects of the COVID-19 pandemic, including its effects on the
economic environment, our customers and operations, as well as
changes to federal, state or local government laws, regulations or
orders in connection with the pandemic; (ii) the strength of the
local, national and international economies; (iii) changes in state
and federal laws, regulations and governmental policies concerning
banking, securities, consumer protection, insurance, monetary,
trade and tax matters; (iv) changes in interest rates and
prepayment rates of our assets; (v) increased competition in the
financial services sector and the inability to attract new
customers; (vi) timely development and acceptance of new products
and services; (vii) changes in technology and the ability to
develop and maintain secure and reliable electronic systems; (viii)
our risk management framework; (ix) interruptions in information
technology and telecommunications systems and third-party services;
(x) changes and uncertainty in benchmark interest rates, including
the elimination of LIBOR and the development of a substitute; (xi)
the effects of severe weather, natural disasters, widespread
disease or pandemics, or other external events; (xii) the loss of
key executives or employees; (xiii) changes in consumer spending;
(xiv) integration of acquired businesses; (xv) unexpected outcomes
of existing or new litigation; (xvi) changes in accounting policies
and practices, such as the implementation of the current expected
credit losses accounting standard; (xvii) the economic impact of
armed conflict or terrorist acts involving the United States;
(xviii) the ability to manage credit risk, forecast loan losses and
maintain an adequate allowance for loan losses; (xix) declines in
the value of our investment portfolio; (xx) the ability to raise
additional capital; (xxi) cyber-attacks; (xxii) declines in real
estate values; (xxiii) the effects of fraud on the part of our
employees, customers, vendors or counterparties; and (xxiv) any
other risks described in the “Risk Factors” sections of reports
filed by Landmark with the Securities and Exchange Commission.
These risks and uncertainties should be considered in evaluating
forward-looking statements, and undue reliance should not be placed
on such statements. Additional information concerning Landmark and
its business, including additional risk factors that could
materially affect Landmark’s financial results, is included in our
filings with the Securities and Exchange Commission.
Contacts:Michael E. ScheopnerPresident and Chief
Executive Officer
Mark A. HerpichChief Financial Officer(785)
565-2000
LANDMARK BANCORP, INC. AND
SUBSIDIARIESConsolidated Balance Sheets
(unaudited)
(Dollars in thousands) |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
30,413 |
|
|
$ |
106,319 |
|
|
$ |
189,213 |
|
|
$ |
117,314 |
|
|
$ |
131,018 |
|
Interest-bearing deposits at other banks |
|
|
8,360 |
|
|
|
6,381 |
|
|
|
7,378 |
|
|
|
7,629 |
|
|
|
5,205 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasury securities |
|
|
135,459 |
|
|
|
119,882 |
|
|
|
42,675 |
|
|
|
40,314 |
|
|
|
36,646 |
|
U.S. federal agency obligations |
|
|
14,931 |
|
|
|
17,013 |
|
|
|
17,195 |
|
|
|
17,297 |
|
|
|
22,852 |
|
Municipal obligations, tax exempt |
|
|
134,994 |
|
|
|
130,915 |
|
|
|
137,984 |
|
|
|
140,788 |
|
|
|
140,526 |
|
Municipal obligations, taxable |
|
|
49,356 |
|
|
|
45,586 |
|
|
|
40,046 |
|
|
|
38,988 |
|
|
|
38,779 |
|
Agency mortgage-backed securities |
|
|
151,893 |
|
|
|
153,587 |
|
|
|
142,817 |
|
|
|
133,502 |
|
|
|
99,936 |
|
Investment securities available-for-sale, at fair value |
|
|
486,633 |
|
|
|
466,983 |
|
|
|
380,717 |
|
|
|
370,889 |
|
|
|
338,739 |
|
Bank stocks, at cost |
|
|
2,881 |
|
|
|
2,856 |
|
|
|
2,905 |
|
|
|
2,985 |
|
|
|
3,220 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family residential real estate |
|
|
192,517 |
|
|
|
169,514 |
|
|
|
166,081 |
|
|
|
161,120 |
|
|
|
162,606 |
|
Construction and land |
|
|
23,092 |
|
|
|
25,408 |
|
|
|
27,644 |
|
|
|
26,658 |
|
|
|
27,092 |
|
Commercial real estate |
|
|
209,879 |
|
|
|
196,736 |
|
|
|
198,472 |
|
|
|
193,455 |
|
|
|
189,093 |
|
Commercial |
|
|
137,929 |
|
|
|
127,226 |
|
|
|
132,154 |
|
|
|
135,790 |
|
|
|
127,672 |
|
Paycheck Protection Program (PPP) |
|
|
652 |
|
|
|
5,218 |
|
|
|
17,179 |
|
|
|
28,671 |
|
|
|
61,236 |
|
Agriculture |
|
|
78,240 |
|
|
|
82,484 |
|
|
|
94,267 |
|
|
|
91,305 |
|
|
|
89,667 |
|
Municipal |
|
|
2,076 |
|
|
|
2,212 |
|
|
|
2,050 |
|
|
|
2,115 |
|
|
|
2,178 |
|
Consumer |
|
|
25,531 |
|
|
|
24,751 |
|
|
|
24,541 |
|
|
|
25,624 |
|
|
|
25,676 |
|
Total gross loans |
|
|
669,916 |
|
|
|
633,549 |
|
|
|
662,388 |
|
|
|
664,738 |
|
|
|
685,220 |
|
Net deferred loan (fees) costs and loans in process |
|
|
229 |
|
|
|
(43 |
) |
|
|
(380 |
) |
|
|
936 |
|
|
|
(2,361 |
) |
Allowance for loan losses |
|
|
(8,315 |
) |
|
|
(8,357 |
) |
|
|
(8,775 |
) |
|
|
(8,766 |
) |
|
|
(9,163 |
) |
Loans, net |
|
|
661,830 |
|
|
|
625,149 |
|
|
|
653,233 |
|
|
|
656,908 |
|
|
|
673,696 |
|
Loans held for sale |
|
|
6,264 |
|
|
|
5,424 |
|
|
|
4,795 |
|
|
|
8,929 |
|
|
|
10,952 |
|
Bank owned life insurance |
|
|
32,483 |
|
|
|
32,293 |
|
|
|
32,106 |
|
|
|
31,914 |
|
|
|
31,722 |
|
Premises and equipment, net |
|
|
20,679 |
|
|
|
20,919 |
|
|
|
20,803 |
|
|
|
20,361 |
|
|
|
20,137 |
|
Goodwill |
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
Other intangible assets, net |
|
|
52 |
|
|
|
67 |
|
|
|
84 |
|
|
|
104 |
|
|
|
132 |
|
Mortgage servicing rights |
|
|
4,025 |
|
|
|
4,128 |
|
|
|
4,193 |
|
|
|
4,201 |
|
|
|
4,143 |
|
Real estate owned, net |
|
|
1,288 |
|
|
|
1,288 |
|
|
|
2,551 |
|
|
|
2,578 |
|
|
|
1,385 |
|
Other assets |
|
|
19,911 |
|
|
|
17,095 |
|
|
|
13,458 |
|
|
|
13,190 |
|
|
|
12,545 |
|
Total assets |
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
|
$ |
1,254,534 |
|
|
$ |
1,250,426 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
|
343,107 |
|
|
|
350,342 |
|
|
|
350,005 |
|
|
|
317,827 |
|
|
|
307,125 |
|
Money market and checking |
|
|
520,056 |
|
|
|
517,936 |
|
|
|
536,868 |
|
|
|
488,213 |
|
|
|
504,025 |
|
Savings |
|
|
170,419 |
|
|
|
167,823 |
|
|
|
155,501 |
|
|
|
151,380 |
|
|
|
150,874 |
|
Certificates of deposit |
|
|
97,885 |
|
|
|
103,464 |
|
|
|
106,107 |
|
|
|
109,267 |
|
|
|
115,739 |
|
Total deposits |
|
|
1,131,467 |
|
|
|
1,139,565 |
|
|
|
1,148,481 |
|
|
|
1,066,687 |
|
|
|
1,077,763 |
|
Subordinated debentures |
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
Other borrowings |
|
|
6,223 |
|
|
|
7,004 |
|
|
|
7,403 |
|
|
|
6,219 |
|
|
|
4,534 |
|
Accrued interest and other liabilities |
|
|
15,708 |
|
|
|
14,701 |
|
|
|
15,790 |
|
|
|
24,571 |
|
|
|
14,122 |
|
Total liabilities |
|
|
1,175,049 |
|
|
|
1,182,921 |
|
|
|
1,193,325 |
|
|
|
1,119,128 |
|
|
|
1,118,070 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
48 |
|
|
|
48 |
|
Additional paid-in capital |
|
|
79,284 |
|
|
|
79,206 |
|
|
|
79,120 |
|
|
|
72,489 |
|
|
|
72,413 |
|
Retained earnings |
|
|
56,662 |
|
|
|
54,677 |
|
|
|
52,593 |
|
|
|
56,957 |
|
|
|
53,391 |
|
Treasury stock, at cost |
|
|
(538 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Accumulated other comprehensive (loss) income |
|
|
(18,156 |
) |
|
|
(10,420 |
) |
|
|
3,880 |
|
|
|
5,912 |
|
|
|
6,504 |
|
Total stockholders’ equity |
|
|
117,302 |
|
|
|
123,513 |
|
|
|
135,643 |
|
|
|
135,406 |
|
|
|
132,356 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
|
$ |
1,254,534 |
|
|
$ |
1,250,426 |
|
LANDMARK BANCORP, INC. AND
SUBSIDIARIESConsolidated 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, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
7,156 |
|
|
$ |
7,191 |
|
|
$ |
8,840 |
|
|
$ |
14,347 |
|
|
$ |
17,244 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,543 |
|
|
|
1,053 |
|
|
|
763 |
|
|
|
2,596 |
|
|
|
1,574 |
|
Tax-exempt |
|
|
730 |
|
|
|
722 |
|
|
|
759 |
|
|
|
1,452 |
|
|
|
1,537 |
|
Total interest income |
|
|
9,429 |
|
|
|
8,966 |
|
|
|
10,362 |
|
|
|
18,395 |
|
|
|
20,355 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
358 |
|
|
|
195 |
|
|
|
261 |
|
|
|
553 |
|
|
|
542 |
|
Borrowed funds |
|
|
173 |
|
|
|
126 |
|
|
|
121 |
|
|
|
299 |
|
|
|
242 |
|
Total interest expense |
|
|
531 |
|
|
|
321 |
|
|
|
382 |
|
|
|
852 |
|
|
|
784 |
|
Net interest income |
|
|
8,898 |
|
|
|
8,645 |
|
|
|
9,980 |
|
|
|
17,543 |
|
|
|
19,571 |
|
Provision for (reversal of)
loan losses |
|
|
- |
|
|
|
(500 |
) |
|
|
- |
|
|
|
(500 |
) |
|
|
500 |
|
Net interest income after provision for loan losses |
|
|
8,898 |
|
|
|
9,145 |
|
|
|
9,980 |
|
|
|
18,043 |
|
|
|
19,071 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
2,380 |
|
|
|
2,188 |
|
|
|
2,153 |
|
|
|
4,568 |
|
|
|
4,186 |
|
Gains on sales of loans, net |
|
|
1,073 |
|
|
|
905 |
|
|
|
2,864 |
|
|
|
1,978 |
|
|
|
6,004 |
|
Bank owned life insurance |
|
|
190 |
|
|
|
187 |
|
|
|
153 |
|
|
|
377 |
|
|
|
301 |
|
Gains on sales of investment securities, net |
|
|
- |
|
|
|
- |
|
|
|
33 |
|
|
|
- |
|
|
|
1,108 |
|
Other |
|
|
153 |
|
|
|
283 |
|
|
|
270 |
|
|
|
436 |
|
|
|
599 |
|
Total non-interest income |
|
|
3,796 |
|
|
|
3,563 |
|
|
|
5,473 |
|
|
|
7,359 |
|
|
|
12,198 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
4,953 |
|
|
|
4,775 |
|
|
|
5,023 |
|
|
|
9,728 |
|
|
|
9,964 |
|
Occupancy and equipment |
|
|
1,177 |
|
|
|
1,233 |
|
|
|
1,105 |
|
|
|
2,410 |
|
|
|
2,167 |
|
Data processing |
|
|
362 |
|
|
|
340 |
|
|
|
492 |
|
|
|
702 |
|
|
|
993 |
|
Amortization of mortgage servicing rights and other
intangibles |
|
|
335 |
|
|
|
316 |
|
|
|
412 |
|
|
|
651 |
|
|
|
849 |
|
Professional fees |
|
|
415 |
|
|
|
451 |
|
|
|
431 |
|
|
|
866 |
|
|
|
823 |
|
Acquisition costs |
|
|
221 |
|
|
|
- |
|
|
|
- |
|
|
|
221 |
|
|
|
- |
|
Other |
|
|
1,559 |
|
|
|
1,723 |
|
|
|
1,727 |
|
|
|
3,282 |
|
|
|
3,467 |
|
Total non-interest expense |
|
|
9,022 |
|
|
|
8,838 |
|
|
|
9,190 |
|
|
|
17,860 |
|
|
|
18,263 |
|
Earnings before income
taxes |
|
|
3,672 |
|
|
|
3,870 |
|
|
|
6,263 |
|
|
|
7,542 |
|
|
|
13,006 |
|
Income tax expense |
|
|
639 |
|
|
|
737 |
|
|
|
1,283 |
|
|
|
1,376 |
|
|
|
2,659 |
|
Net earnings |
|
$ |
3,033 |
|
|
$ |
3,133 |
|
|
$ |
4,980 |
|
|
$ |
6,166 |
|
|
$ |
10,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.61 |
|
|
$ |
0.63 |
|
|
$ |
1.00 |
|
|
$ |
1.24 |
|
|
$ |
2.07 |
|
Diluted |
|
|
0.61 |
|
|
|
0.62 |
|
|
|
0.99 |
|
|
|
1.23 |
|
|
|
2.07 |
|
Dividends per share (1) |
|
|
0.21 |
|
|
|
0.21 |
|
|
|
0.19 |
|
|
|
0.42 |
|
|
|
0.38 |
|
Shares outstanding at end of
period (1) |
|
|
4,976,344 |
|
|
|
4,997,459 |
|
|
|
4,994,434 |
|
|
|
4,976,344 |
|
|
|
4,994,434 |
|
Weighted average common shares
outstanding - basic (1) |
|
|
4,988,416 |
|
|
|
4,997,459 |
|
|
|
4,990,507 |
|
|
|
4,992,912 |
|
|
|
4,990,507 |
|
Weighted average common shares
outstanding - diluted (1) |
|
|
5,002,425 |
|
|
|
5,017,055 |
|
|
|
4,997,473 |
|
|
|
5,009,822 |
|
|
|
4,997,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net interest
income |
|
$ |
9,094 |
|
|
$ |
8,840 |
|
|
$ |
10,185 |
|
|
$ |
17,934 |
|
|
$ |
19,986 |
|
(1) Share and per share values at or for the
periods ended June 30, 2021 have been adjusted to give effect to
the 5% stock dividend paid during December 2021.
LANDMARK BANCORP, INC. AND
SUBSIDIARIESSelect Ratios and Other Data
(unaudited)
(Dollars in thousands, except per share amounts) |
|
As of or for the three months ended, |
|
|
Six months ended, |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Performance
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
0.93 |
% |
|
|
0.97 |
% |
|
|
1.59 |
% |
|
|
0.95 |
% |
|
|
1.68 |
% |
Return on average equity (1) |
|
|
10.04 |
% |
|
|
9.59 |
% |
|
|
15.40 |
% |
|
|
9.81 |
% |
|
|
16.22 |
% |
Net interest margin (1)(2) |
|
|
3.05 |
% |
|
|
2.99 |
% |
|
|
3.53 |
% |
|
|
3.02 |
% |
|
|
3.53 |
% |
Effective tax rate |
|
|
17.4 |
% |
|
|
19.0 |
% |
|
|
20.5 |
% |
|
|
18.2 |
% |
|
|
20.4 |
% |
Efficiency ratio (3) |
|
|
69.1 |
% |
|
|
72.7 |
% |
|
|
58.9 |
% |
|
|
70.9 |
% |
|
|
59.1 |
% |
Non-interest income to total income (3) |
|
|
29.9 |
% |
|
|
28.5 |
% |
|
|
35.3 |
% |
|
|
29.2 |
% |
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
477,035 |
|
|
$ |
421,996 |
|
|
$ |
334,936 |
|
|
$ |
449,667 |
|
|
$ |
318,353 |
|
Loans |
|
|
653,013 |
|
|
|
636,032 |
|
|
|
709,872 |
|
|
|
644,569 |
|
|
|
719,985 |
|
Assets |
|
|
1,307,112 |
|
|
|
1,305,813 |
|
|
|
1,253,995 |
|
|
|
1,306,446 |
|
|
|
1,242,155 |
|
Interest-bearing deposits |
|
|
791,257 |
|
|
|
792,354 |
|
|
|
771,728 |
|
|
|
791,803 |
|
|
|
767,243 |
|
Subordinated debentures and other borrowings |
|
|
28,632 |
|
|
|
28,476 |
|
|
|
26,038 |
|
|
|
28,554 |
|
|
|
26,805 |
|
Stockholders’ equity |
|
|
121,147 |
|
|
|
132,429 |
|
|
$ |
129,744 |
|
|
|
126,757 |
|
|
$ |
128,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tax equivalent
yield/cost (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
1.97 |
% |
|
|
1.83 |
% |
|
|
2.02 |
% |
|
|
1.90 |
% |
|
|
2.19 |
% |
Loans |
|
|
4.40 |
% |
|
|
4.59 |
% |
|
|
5.00 |
% |
|
|
4.49 |
% |
|
|
4.83 |
% |
Total interest-bearing assets |
|
|
3.23 |
% |
|
|
3.10 |
% |
|
|
3.67 |
% |
|
|
3.16 |
% |
|
|
3.66 |
% |
Interest-bearing deposits |
|
|
0.18 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
Subordinated debentures and other borrowings |
|
|
3.06 |
% |
|
|
2.30 |
% |
|
|
2.20 |
% |
|
|
2.68 |
% |
|
|
1.82 |
% |
Repurchase agreements |
|
|
0.46 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.32 |
% |
|
|
0.16 |
% |
Total interest-bearing liabilities |
|
|
0.26 |
% |
|
|
0.16 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
9.08 |
% |
|
|
9.45 |
% |
|
|
10.58 |
% |
|
|
|
|
|
|
|
|
Tangible equity to tangible assets (3) |
|
|
7.82 |
% |
|
|
8.22 |
% |
|
|
9.30 |
% |
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
23.57 |
|
|
$ |
24.72 |
|
|
$ |
26.50 |
|
|
|
|
|
|
|
|
|
Tangible book value per share (3) |
|
$ |
20.04 |
|
|
$ |
21.19 |
|
|
$ |
22.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward
of allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
8,357 |
|
|
$ |
8,775 |
|
|
$ |
9,271 |
|
|
$ |
8,775 |
|
|
$ |
8,775 |
|
Charge-offs |
|
|
(76 |
) |
|
|
(53 |
) |
|
|
(228 |
) |
|
|
(129 |
) |
|
|
(292 |
) |
Recoveries |
|
|
34 |
|
|
|
135 |
|
|
|
120 |
|
|
|
169 |
|
|
|
180 |
|
Provision for loan losses |
|
|
- |
|
|
|
(500 |
) |
|
|
- |
|
|
|
(500 |
) |
|
|
500 |
|
Ending balance |
|
$ |
8,315 |
|
|
$ |
8,357 |
|
|
$ |
9,163 |
|
|
$ |
8,315 |
|
|
$ |
9,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
$ |
4,887 |
|
|
$ |
4,676 |
|
|
$ |
13,297 |
|
|
|
|
|
|
|
|
|
Accruing loans over 90 days past due |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Real estate owned |
|
|
1,288 |
|
|
|
1,288 |
|
|
|
1,385 |
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
6,175 |
|
|
$ |
5,964 |
|
|
$ |
14,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days delinquent |
|
$ |
877 |
|
|
$ |
846 |
|
|
$ |
1,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to deposits |
|
|
58.49 |
% |
|
|
54.86 |
% |
|
|
62.51 |
% |
|
|
|
|
|
|
|
|
Loans 30-89 days delinquent and still accruing to gross loans
outstanding |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.27 |
% |
|
|
|
|
|
|
|
|
Total non-performing loans to gross loans outstanding |
|
|
0.73 |
% |
|
|
0.74 |
% |
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
Total non-performing assets to total assets |
|
|
0.48 |
% |
|
|
0.46 |
% |
|
|
1.17 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to gross loans outstanding |
|
|
1.24 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to gross loans outstanding excluding PPP
loans |
|
|
1.24 |
% |
|
|
1.33 |
% |
|
|
1.47 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to total non-performing loans |
|
|
170.15 |
% |
|
|
178.72 |
% |
|
|
68.91 |
% |
|
|
|
|
|
|
|
|
Net loan charge-offs to average loans (1) |
|
|
0.03 |
% |
|
|
-0.05 |
% |
|
|
0.06 |
% |
|
|
-0.01 |
% |
|
|
0.03 |
% |
(1) Information is annualized.(2) Net interest margin is
presented on a fully tax equivalent basis, using a 21% federal tax
rate.(3) Non-GAAP financial measures. See the “Non-GAAP Financial
Measures” section of this press release for a reconciliation to the
most comparable GAAP equivalent.
LANDMARK BANCORP, INC. AND
SUBSIDIARIESNon-GAAP Financials Measures
(unaudited)
(Dollars in thousands, except
per share amounts) |
|
As of or for the three months ended, |
|
|
Six months ended, |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Non-GAAP financial
ratio reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
|
$ |
9,022 |
|
|
$ |
8,838 |
|
|
$ |
9,190 |
|
|
$ |
17,860 |
|
|
$ |
18,263 |
|
Less: foreclosure and real estate owned expense |
|
|
(9 |
) |
|
|
(23 |
) |
|
|
(65 |
) |
|
|
(32 |
) |
|
|
(76 |
) |
Less: amortization of other intangibles |
|
|
(15 |
) |
|
|
(17 |
) |
|
|
(36 |
) |
|
|
(32 |
) |
|
|
(74 |
) |
Less: acquisition costs |
|
|
(221 |
) |
|
|
- |
|
|
|
- |
|
|
|
(221 |
) |
|
|
- |
|
Adjusted non-interest expense (A) |
|
|
8,777 |
|
|
|
8,798 |
|
|
|
9,089 |
|
|
|
17,575 |
|
|
|
18,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (B) |
|
|
8,898 |
|
|
|
8,645 |
|
|
|
9,980 |
|
|
|
17,543 |
|
|
|
19,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
3,796 |
|
|
|
3,563 |
|
|
|
5,473 |
|
|
|
7,359 |
|
|
|
12,198 |
|
Less: gains on sales of investment securities, net |
|
|
- |
|
|
|
- |
|
|
|
(33 |
) |
|
|
- |
|
|
|
(1,108 |
) |
Less: gains on sales of premises and equipment and foreclosed
assets |
|
|
- |
|
|
|
(114 |
) |
|
|
- |
|
|
|
(114 |
) |
|
|
(5 |
) |
Adjusted non-interest income (C) |
|
$ |
3,796 |
|
|
$ |
3,449 |
|
|
$ |
5,440 |
|
|
$ |
7,245 |
|
|
$ |
11,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (A/(B+C)) |
|
|
69.1 |
% |
|
|
72.7 |
% |
|
|
58.9 |
% |
|
|
70.9 |
% |
|
|
59.1 |
% |
Non-interest income to total income (C/(B+C)) |
|
|
29.9 |
% |
|
|
28.5 |
% |
|
|
35.3 |
% |
|
|
29.2 |
% |
|
|
36.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
$ |
117,302 |
|
|
$ |
123,513 |
|
|
$ |
132,356 |
|
|
|
|
|
|
|
|
|
Less: goodwill and other intangible assets |
|
|
(17,584 |
) |
|
|
(17,599 |
) |
|
|
(17,664 |
) |
|
|
|
|
|
|
|
|
Tangible equity (D) |
|
$ |
99,718 |
|
|
$ |
105,914 |
|
|
$ |
114,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,250,426 |
|
|
|
|
|
|
|
|
|
Less: goodwill and other intangible assets |
|
|
(17,584 |
) |
|
|
(17,599 |
) |
|
|
(17,664 |
) |
|
|
|
|
|
|
|
|
Tangible assets (E) |
|
$ |
1,274,767 |
|
|
$ |
1,288,835 |
|
|
$ |
1,232,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets (D/E) |
|
|
7.82 |
% |
|
|
8.22 |
% |
|
|
9.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period (F) |
|
|
4,976,344 |
|
|
|
4,997,459 |
|
|
|
4,994,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (D/F) |
|
$ |
20.04 |
|
|
$ |
21.19 |
|
|
$ |
22.96 |
|
|
|
|
|
|
|
|
|
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