Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted
earnings per share of $0.23 for the three months ended December 31,
2022, compared to $0.48 per share in the third quarter of 2022 and
$0.60 per share in the same quarter last year. Net earnings for the
fourth quarter of 2022 amounted to $1.2 million, compared to $2.5
million in the prior quarter and $3.1 million for the fourth
quarter of 2021. For the three months ended December 31, 2022, the
return on average assets was 0.32%, the return on average equity
was 4.50%, and the efficiency ratio was 66.8%. Effective October 1,
2022, Landmark completed its acquisition of Freedom Bancshares,
Inc. (“Freedom”), and Freedom’s results of operations are included
in Landmark’s fourth quarter results. Excluding acquisition costs
of $3.0 million, adjusted net earnings for the fourth quarter of
2022 would have been $3.5 million or $0.67 of diluted earnings per
share, while the return on average assets would have been 0.92%,
and the return on average equity would have been 13.04%. The
adjusted results excluding acquisition costs are a non-GAAP
financial measure to make the periods more comparable.
For the year ended December 31, 2022, diluted
earnings per share totaled $1.88 compared to $3.42 during 2021. Net
earnings for 2022 amounted to $9.9 million, compared to $18.0
million in 2021. For the year ended December 31, 2022, the return
on average assets was 0.73% and the return on average equity was
8.25%. Excluding the acquisition costs mentioned above, the
adjusted net earnings for 2022 would have been $12.4 million or
$2.37 of diluted earnings per share, while the adjusted return on
average assets and the return on average equity would have been
0.92% and 10.39%, respectively.
In making this announcement, Michael E.
Scheopner, President and Chief Executive Officer of Landmark, said,
“We are pleased with the assimilation of Freedom’s associates and
customers to date, and our core system conversion is scheduled for
late first quarter which will provide opportunities for additional
synergies. While our fourth quarter results were impacted by costs
associated with the acquisition and losses on sales of investment
securities, these strategic moves position us well for 2023 and
beyond. Loan growth remained strong during the fourth quarter, and
we experienced solid growth in net interest income over the prior
quarter. Deposits also increased this quarter. Compared to the
third quarter 2022 and excluding $118.0 million of loans acquired
in connection with the acquisition of Freedom, total gross loans
increased by $20.8 million, or 11.6% on an annualized basis. Net
interest income also grew by 25.8% while our net interest margin
increased to 3.53% during the fourth quarter of 2022. Non-interest
income declined $1.8 million compared to the same period last year
mostly the result of lower gains on sales of residential mortgage
loans. We also recorded a $750,000 loss on sale of lower yielding
investment securities that we had strategically sold this quarter.
Excluding the $150.4 million of deposits assumed in the acquisition
from Freedom, deposit balances increased by $33.1 million, or 11.7%
on an annualized basis, as compared to September 30, 2022.”
Mr. Scheopner continued, “Credit quality remains
very strong and non-accrual loans and delinquencies continue to
decline. Landmark recorded net loan charge-offs of $67,000 in the
fourth quarter of 2022 compared to net loan recoveries of $43,000
in the prior quarter and $9,000 in the fourth quarter of 2021.
Non-accrual loans totaled $3.3 million or 0.39% of gross loans at
December 31, 2022 and have declined $1.9 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 $8.8 million at
December 31, 2022, or 1.03% of period end loans. Our equity to
assets ratio totaled 7.41% while loans to deposits totaled
64.7%.”
Total assets at December 31, 2022 were $1.5
billion, total gross loans were $850.2 million and total deposits
were $1.3 billion. On October 1, 2022, Landmark completed the
acquisition of Freedom, a one-bank holding company with gross loans
of $118.0 million and deposits of $150.4 million. Landmark’s newest
branch, acquired from this acquisition, is in Overland Park, Kansas
and expands our presence in the Kansas City market.
Landmark’s Board of Directors declared a cash
dividend of $0.21 per share, to be paid March 1, 2023, to common
stockholders of record as of the close of business on February 15,
2023.
Management will host a conference call to
discuss the Company’s financial results at 10:00 a.m. (Central
time) on Wednesday, February 1, 2023. Investors may participate via
telephone by dialing (844) 200-6205 and using access code 653744. A
replay of the call will be available through March 2, 2023, by
dialing (866) 813-9403 and using access code 490365.
SUMMARY OF
FOURTH QUARTER RESULTS
Net Interest Income
Net interest income amounted to $11.9 million
for the three months ended December 31, 2022, an increase of $2.8
million, or 30.1% over the fourth quarter of 2021. The growth in
net interest income compared with the same period last year was the
result of growth in interest income of $4.8 million partially
offset by an increase in interest expense of $2.0 million. The
increase in interest income was mainly the result of higher rates
and balances of both loans and investment securities while growth
in interest-bearing liabilities and higher rates resulted in
increased interest expense. Total gross loans totaled increased
$187.8 million (includes $118.0 of acquired Freedom loans) in the
fourth quarter of 2022 to $850.2 million compared to the same
period last year while loan yields increased to 5.29%. Investment
securities balances also increased by $108.6 million compared to
the fourth quarter of 2021 and the tax- equivalent yield on these
balances grew to 2.56%. Total deposits grew by $152.2 million
(including Freedom acquired deposits of $150.4 million) over the
same period last year while other borrowings also grew by $39.2
million. The average rate on interest-bearing liabilities increased
this quarter to 0.99% compared to 0.17% last year in the fourth
quarter and 0.55% in the prior quarter. Average net
interest-earning assets increased $190.7 million to $1.4 billion
this quarter compared to the same period last year. On a
tax-equivalent basis, the net interest margin totaled 3.53% in the
fourth quarter of 2022, compared to 3.21% in the prior quarter and
3.17% in the fourth quarter of 2021.
Non-Interest Income
Non-interest income totaled $2.8 million for the
fourth quarter of 2022, a decrease of $1.8 million, or 38.8%,
compared to the same period last year and $717,000, or 20.3%, from
the previous quarter. The decrease in non-interest income during
the fourth quarter of 2022 compared to the same period last year
was primarily due to a decline of $1.4 million in gains on sales of
one-to-four family residential real estate loans as higher interest
rates and low housing inventories reduced originations of these
fixed rate loans compared to the prior quarter and the same quarter
last year. Higher mortgage rates, however, resulted in an increase
in originations of adjustable-rate loans in the fourth quarter of
2022. Fees and service charges increased $169,000, or 7.0%, over
the same period last year and increased $61,000 compared to the
prior quarter mainly due to increased deposit-related income.
Losses of $750,000 and $353,000 were recorded in the fourth and
third quarters of 2022, respectively, on the sale of certain low
yielding investment securities in our portfolio.
Non-Interest Expense
During the fourth quarter of 2022, non-interest
expense totaled $14.0 million, an increase of $4.4 million, or
46.1%, over the same period in 2021 and $4.5 million, or 47.5%
higher than in the prior quarter. The increase in non-interest
expense was primarily due to $3.0 million of acquisition costs in
the fourth quarter of 2022 compared to $134,000 in the prior
quarter and none in the same period of 2021. Higher costs for
compensation and benefits, occupancy and equipment and other
non-interest expenses were primarily due to the costs associated
with operating a new branch facility from the Freedom acquisition
this quarter, while amortization expense increased due to the core
deposit intangible recorded for the acquisition. During the fourth
quarter of 2022, a valuation allowance of $354,000 was recorded on
real estate owned and was included in other non-interest
expense.
Income Tax Expense
Landmark recorded an income tax benefit of
$466,000 in the fourth quarter of 2022 compared to income tax
expense of $522,000 in the third quarter of 2022 and $1.0 million
in the fourth quarter of 2021. The effective tax rate decreased to
(62.5%) in the fourth quarter of 2022 compared to 24.8% in the
fourth quarter of 2021 and 17.3% in the third quarter of 2022. The
fourth quarter of 2022 included the recognition of $465,000 of
previously unrecognized tax benefits, which reduced the effective
tax rate in the period.
Balance Sheet Highlights
As of December 31, 2022, gross loans totaled
$850.2 million, an increase of $138.9 million since September 30,
2022. The growth in loans was primarily due to the acquisition of
Freedom’s $118.0 million loan portfolio coupled with core growth of
$20.9 million in loans this quarter. During the quarter, loan
growth was comprised of commercial real estate (growth of $75.4
million), commercial (growth of $28.8 million), residential real
estate (growth of $31.5 million), and construction loans (growth of
$4.6 million). Investment securities increased $8.7 million, during
the fourth quarter of 2022, however gross unrealized net losses on
these investment securities decreased from $41.0 million at
September 30, 2022 to $33.2 million at December 31, 2022. Excluding
the $150.4 million of deposits assumed in the Freedom acquisition,
deposit balances increased $33.1 million, or 11.7% on an annualized
basis, to $1.3 billion at December 31, 2022. The increase in
deposits was mainly driven by seasonal growth in public fund
deposit accounts. Other borrowings increased by $22.1 million this
quarter, primarily due to $22.2 million of repurchase agreements
assumed in the Freedom acquisition. At December 31, 2022, the loan
to deposits ratio was 64.7% compared to 62.9% in the prior quarter
and 56.9% in the same period last year.
Stockholders’ equity increased to $111.4 million
(book value of $21.38 per share) as of December 31, 2022, from
$105.5 million (book value of $20.20 per share) as of September 30,
2022, due mainly to a decrease in other comprehensive losses during
the fourth quarter of 2022 related to the decline in the unrealized
losses on investment securities mentioned above. The ratio of
equity to total assets decreased to 7.41% on December 31, 2022,
from 7.78% at September 30, 2022.
The allowance for loan losses totaled $8.8
million, or 1.03% of total gross loans on December 31, 2022,
compared to $8.9 million, or 1.25% of total gross loans on
September 30, 2022. Net loan charge-offs totaled $67,000 in the
fourth quarter of 2022, compared to net loan recoveries of $9,000
during the same quarter last year and $43,000 during the third
quarter of 2022. The ratio of annualized net loan charge-offs to
total average loans was 0.03% in the fourth quarter of 2022,
(0.01%) in the fourth quarter of last year and (0.02%) in the prior
quarter. No provision for loan losses was made in either the fourth
quarter of 2022 or 2021. A $500,000 provision for loan losses was
recorded in the third quarter of 2022 primarily due to the growth
in loans during the quarter.
Non-performing loans totaled $3.3 million, or
0.39% of gross loans, while loans 30-89 days delinquent totaled
$738,000, or 0.09% of gross loans, as of December 31, 2022. Real
estate owned totaled $0.9 million at December 31, 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.
Contacts: |
Michael E. Scheopner |
President and Chief Executive Officer |
Mark A. Herpich |
Chief Financial Officer |
(785) 565-2000 |
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; (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; (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
elimination of LIBOR and the development of a substitute; (x) the
effects of severe weather, natural disasters, widespread disease or
pandemics (including the COVID-19 pandemic), 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 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) declines in the value of our
investment portfolio; (xix) the ability to raise additional
capital; (xx) cyber-attacks; (xxi) declines in real estate values;
(xxii) the effects of fraud on the part of our employees,
customers, vendors or counterparties; and (xxiii) 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
SUBSIDIARIESConsolidated Balance Sheets
(unaudited)
(Dollars in thousands) |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,156 |
|
|
$ |
49,234 |
|
|
$ |
30,413 |
|
|
$ |
106,319 |
|
|
$ |
189,213 |
|
Interest-bearing deposits at other banks |
|
|
9,084 |
|
|
|
8,844 |
|
|
|
8,360 |
|
|
|
6,381 |
|
|
|
7,378 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasury securities |
|
|
123,111 |
|
|
|
127,445 |
|
|
|
135,459 |
|
|
|
119,882 |
|
|
|
42,675 |
|
U.S. federal agency obligations |
|
|
1,988 |
|
|
|
4,979 |
|
|
|
14,931 |
|
|
|
17,013 |
|
|
|
17,195 |
|
Municipal obligations, tax exempt |
|
|
127,262 |
|
|
|
128,392 |
|
|
|
134,994 |
|
|
|
130,915 |
|
|
|
137,984 |
|
Municipal obligations, taxable |
|
|
67,244 |
|
|
|
61,959 |
|
|
|
49,356 |
|
|
|
45,586 |
|
|
|
40,046 |
|
Agency mortgage-backed securities |
|
|
169,701 |
|
|
|
161,331 |
|
|
|
151,893 |
|
|
|
153,587 |
|
|
|
142,817 |
|
Investment securities available-for-sale, at fair value |
|
|
489,306 |
|
|
|
484,106 |
|
|
|
486,633 |
|
|
|
466,983 |
|
|
|
380,717 |
|
Investment securities held-to-maturity |
|
|
3,524 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Bank stocks, at cost |
|
|
5,470 |
|
|
|
6,641 |
|
|
|
2,881 |
|
|
|
2,856 |
|
|
|
2,905 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family residential real estate |
|
|
236,982 |
|
|
|
205,466 |
|
|
|
192,517 |
|
|
|
169,514 |
|
|
|
166,081 |
|
Construction and land |
|
|
22,725 |
|
|
|
18,119 |
|
|
|
23,092 |
|
|
|
25,408 |
|
|
|
27,644 |
|
Commercial real estate |
|
|
304,074 |
|
|
|
228,669 |
|
|
|
209,879 |
|
|
|
196,736 |
|
|
|
198,472 |
|
Commercial |
|
|
173,415 |
|
|
|
144,582 |
|
|
|
137,929 |
|
|
|
127,226 |
|
|
|
132,154 |
|
Paycheck Protection Program (PPP) |
|
|
21 |
|
|
|
410 |
|
|
|
652 |
|
|
|
5,218 |
|
|
|
17,179 |
|
Agriculture |
|
|
84,283 |
|
|
|
86,114 |
|
|
|
78,240 |
|
|
|
82,484 |
|
|
|
94,267 |
|
Municipal |
|
|
2,026 |
|
|
|
2,036 |
|
|
|
2,076 |
|
|
|
2,212 |
|
|
|
2,050 |
|
Consumer |
|
|
26,664 |
|
|
|
25,911 |
|
|
|
25,531 |
|
|
|
24,751 |
|
|
|
24,541 |
|
Total gross loans |
|
|
850,190 |
|
|
|
711,307 |
|
|
|
669,916 |
|
|
|
633,549 |
|
|
|
662,388 |
|
Net deferred loan (fees) costs and loans in process |
|
|
(250 |
) |
|
|
(311 |
) |
|
|
229 |
|
|
|
(43 |
) |
|
|
(380 |
) |
Allowance for loan losses |
|
|
(8,791 |
) |
|
|
(8,858 |
) |
|
|
(8,315 |
) |
|
|
(8,357 |
) |
|
|
(8,775 |
) |
Loans, net |
|
|
841,149 |
|
|
|
702,138 |
|
|
|
661,830 |
|
|
|
625,149 |
|
|
|
653,233 |
|
Loans held for sale |
|
|
2,488 |
|
|
|
2,741 |
|
|
|
6,264 |
|
|
|
5,424 |
|
|
|
4,795 |
|
Bank owned life insurance |
|
|
37,323 |
|
|
|
32,672 |
|
|
|
32,483 |
|
|
|
32,293 |
|
|
|
32,106 |
|
Premises and equipment, net |
|
|
24,327 |
|
|
|
20,628 |
|
|
|
20,679 |
|
|
|
20,919 |
|
|
|
20,803 |
|
Goodwill |
|
|
32,199 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
Other intangible assets, net |
|
|
4,006 |
|
|
|
36 |
|
|
|
52 |
|
|
|
67 |
|
|
|
84 |
|
Mortgage servicing rights |
|
|
3,813 |
|
|
|
3,980 |
|
|
|
4,025 |
|
|
|
4,128 |
|
|
|
4,193 |
|
Real estate owned, net |
|
|
934 |
|
|
|
1,288 |
|
|
|
1,288 |
|
|
|
1,288 |
|
|
|
2,551 |
|
Other assets |
|
|
26,088 |
|
|
|
25,456 |
|
|
|
19,911 |
|
|
|
17,095 |
|
|
|
13,458 |
|
Total assets |
|
$ |
1,502,867 |
|
|
$ |
1,355,296 |
|
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
|
410,142 |
|
|
|
347,942 |
|
|
|
343,107 |
|
|
|
350,342 |
|
|
|
350,005 |
|
Money market and checking |
|
|
626,659 |
|
|
|
504,973 |
|
|
|
520,056 |
|
|
|
517,936 |
|
|
|
536,868 |
|
Savings |
|
|
170,570 |
|
|
|
170,988 |
|
|
|
170,419 |
|
|
|
167,823 |
|
|
|
155,501 |
|
Certificates of deposit |
|
|
93,278 |
|
|
|
93,234 |
|
|
|
97,885 |
|
|
|
103,464 |
|
|
|
106,107 |
|
Total deposits |
|
|
1,300,649 |
|
|
|
1,117,137 |
|
|
|
1,131,467 |
|
|
|
1,139,565 |
|
|
|
1,148,481 |
|
Federal Home Loan Bank borrowings |
|
|
8,200 |
|
|
|
74,900 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Subordinated debentures |
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
Other borrowings |
|
|
38,402 |
|
|
|
16,349 |
|
|
|
6,223 |
|
|
|
7,004 |
|
|
|
7,403 |
|
Accrued interest and other liabilities |
|
|
22,532 |
|
|
|
19,775 |
|
|
|
15,708 |
|
|
|
14,701 |
|
|
|
15,790 |
|
Total liabilities |
|
|
1,391,434 |
|
|
|
1,249,812 |
|
|
|
1,175,049 |
|
|
|
1,182,921 |
|
|
|
1,193,325 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
52 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Additional paid-in capital |
|
|
84,273 |
|
|
|
79,329 |
|
|
|
79,284 |
|
|
|
79,206 |
|
|
|
79,120 |
|
Retained earnings |
|
|
52,174 |
|
|
|
58,114 |
|
|
|
56,662 |
|
|
|
54,677 |
|
|
|
52,593 |
|
Treasury stock, at cost |
|
|
- |
|
|
|
(1,040 |
) |
|
|
(538 |
) |
|
|
- |
|
|
|
- |
|
Accumulated other comprehensive (loss) income |
|
|
(25,066 |
) |
|
|
(30,969 |
) |
|
|
(18,156 |
) |
|
|
(10,420 |
) |
|
|
3,880 |
|
Total stockholders’ equity |
|
|
111,433 |
|
|
|
105,484 |
|
|
|
117,302 |
|
|
|
123,513 |
|
|
|
135,643 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,502,867 |
|
|
$ |
1,355,296 |
|
|
$ |
1,292,351 |
|
|
$ |
1,306,434 |
|
|
$ |
1,328,968 |
|
LANDMARK BANCORP, INC. AND
SUBSIDIARIESConsolidated Statements of Earnings
(unaudited)
(Dollars in thousands, except
per share amounts) |
|
Three months ended, |
|
|
Year ended, |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
11,101 |
|
|
$ |
8,025 |
|
|
$ |
7,907 |
|
|
$ |
33,473 |
|
|
$ |
33,612 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,356 |
|
|
|
1,783 |
|
|
|
836 |
|
|
|
6,735 |
|
|
|
3,192 |
|
Tax-exempt |
|
|
786 |
|
|
|
780 |
|
|
|
737 |
|
|
|
3,018 |
|
|
|
3,022 |
|
Total interest income |
|
|
14,243 |
|
|
|
10,588 |
|
|
|
9,480 |
|
|
|
43,226 |
|
|
|
39,826 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,452 |
|
|
|
771 |
|
|
|
223 |
|
|
|
2,776 |
|
|
|
1,023 |
|
Borrowed funds |
|
|
905 |
|
|
|
366 |
|
|
|
121 |
|
|
|
1,570 |
|
|
|
483 |
|
Total interest expense |
|
|
2,357 |
|
|
|
1,137 |
|
|
|
344 |
|
|
|
4,346 |
|
|
|
1,506 |
|
Net interest income |
|
|
11,886 |
|
|
|
9,451 |
|
|
|
9,136 |
|
|
|
38,880 |
|
|
|
38,320 |
|
Provision for loan losses |
|
|
- |
|
|
|
500 |
|
|
|
- |
|
|
|
- |
|
|
|
500 |
|
Net interest income after provision for loan losses |
|
|
11,886 |
|
|
|
8,951 |
|
|
|
9,136 |
|
|
|
38,880 |
|
|
|
37,820 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
2,572 |
|
|
|
2,511 |
|
|
|
2,403 |
|
|
|
9,651 |
|
|
|
8,857 |
|
Gains on sales of loans, net |
|
|
417 |
|
|
|
1,049 |
|
|
|
1,823 |
|
|
|
3,444 |
|
|
|
10,487 |
|
Bank owned life insurance |
|
|
214 |
|
|
|
189 |
|
|
|
192 |
|
|
|
780 |
|
|
|
686 |
|
(Losses) gains on sales of investment securities, net |
|
|
(750 |
) |
|
|
(353 |
) |
|
|
- |
|
|
|
(1,103 |
) |
|
|
1,138 |
|
Other |
|
|
359 |
|
|
|
133 |
|
|
|
180 |
|
|
|
928 |
|
|
|
1,093 |
|
Total non-interest income |
|
|
2,812 |
|
|
|
3,529 |
|
|
|
4,598 |
|
|
|
13,700 |
|
|
|
22,261 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
5,626 |
|
|
|
5,051 |
|
|
|
5,061 |
|
|
|
20,405 |
|
|
|
20,157 |
|
Occupancy and equipment |
|
|
1,373 |
|
|
|
1,335 |
|
|
|
1,214 |
|
|
|
5,118 |
|
|
|
4,482 |
|
Data processing |
|
|
495 |
|
|
|
383 |
|
|
|
525 |
|
|
|
1,580 |
|
|
|
2,016 |
|
Amortization of mortgage servicing rights and other
intangibles |
|
|
481 |
|
|
|
314 |
|
|
|
376 |
|
|
|
1,446 |
|
|
|
1,601 |
|
Professional fees |
|
|
554 |
|
|
|
472 |
|
|
|
595 |
|
|
|
1,892 |
|
|
|
1,831 |
|
Acquisition costs |
|
|
3,043 |
|
|
|
134 |
|
|
|
- |
|
|
|
3,398 |
|
|
|
- |
|
Other |
|
|
2,380 |
|
|
|
1,769 |
|
|
|
1,779 |
|
|
|
7,431 |
|
|
|
7,169 |
|
Total non-interest expense |
|
|
13,952 |
|
|
|
9,458 |
|
|
|
9,550 |
|
|
|
41,270 |
|
|
|
37,256 |
|
Earnings before income
taxes |
|
|
746 |
|
|
|
3,022 |
|
|
|
4,184 |
|
|
|
11,310 |
|
|
|
22,825 |
|
Income tax expense |
|
|
(466 |
) |
|
|
522 |
|
|
|
1,037 |
|
|
|
1,432 |
|
|
|
4,814 |
|
Net earnings |
|
$ |
1,212 |
|
|
$ |
2,500 |
|
|
$ |
3,147 |
|
|
$ |
9,878 |
|
|
$ |
18,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.23 |
|
|
$ |
0.48 |
|
|
$ |
0.60 |
|
|
$ |
1.89 |
|
|
$ |
3.43 |
|
Diluted |
|
|
0.23 |
|
|
|
0.48 |
|
|
|
0.60 |
|
|
|
1.88 |
|
|
|
3.42 |
|
Dividends per share (1) |
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.18 |
|
|
|
0.80 |
|
|
|
0.73 |
|
Shares outstanding at end of
period (1) |
|
|
5,213,232 |
|
|
|
5,221,966 |
|
|
|
5,247,332 |
|
|
|
5,213,232 |
|
|
|
5,247,332 |
|
Weighted average common shares
outstanding - basic (1) |
|
|
5,214,698 |
|
|
|
5,228,270 |
|
|
|
5,247,294 |
|
|
|
5,230,749 |
|
|
|
5,244,273 |
|
Weighted average common shares
outstanding - diluted (1) |
|
|
5,228,490 |
|
|
|
5,242,073 |
|
|
|
5,267,143 |
|
|
|
5,245,765 |
|
|
|
5,259,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net interest
income |
|
$ |
12,089 |
|
|
$ |
9,657 |
|
|
$ |
9,335 |
|
|
$ |
39,680 |
|
|
$ |
39,136 |
|
(1 |
) |
Share and per share values at or for the periods ended September
30, 2022 and December 31, 2021 have been adjusted to give effect to
the 5% stock dividend paid during December 2022. |
LANDMARK BANCORP, INC. AND
SUBSIDIARIESSelect Ratios and Other Data
(unaudited)
|
|
As of or for the |
|
|
As of or for the |
|
(Dollars in thousands, except
per share amounts) |
|
three months ended, |
|
|
year ended, |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Performance
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
0.32 |
% |
|
|
0.77 |
% |
|
|
0.98 |
% |
|
|
0.73 |
% |
|
|
1.43 |
% |
Return on average equity (1) |
|
|
4.50 |
% |
|
|
8.42 |
% |
|
|
9.25 |
% |
|
|
8.25 |
% |
|
|
13.68 |
% |
Net interest margin (1)(2) |
|
|
3.53 |
% |
|
|
3.21 |
% |
|
|
3.17 |
% |
|
|
3.21 |
% |
|
|
3.39 |
% |
Effective tax rate |
|
|
-62.5 |
% |
|
|
17.3 |
% |
|
|
24.8 |
% |
|
|
12.7 |
% |
|
|
21.1 |
% |
Efficiency ratio (3) |
|
|
66.8 |
% |
|
|
69.6 |
% |
|
|
68.3 |
% |
|
|
69.4 |
% |
|
|
61.8 |
% |
Non-interest income to total income (3) |
|
|
23.1 |
% |
|
|
29.1 |
% |
|
|
33.6 |
% |
|
|
27.4 |
% |
|
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
504,495 |
|
|
$ |
494,283 |
|
|
$ |
383,508 |
|
|
$ |
474,732 |
|
|
$ |
343,059 |
|
Loans |
|
|
832,285 |
|
|
|
687,716 |
|
|
|
652,691 |
|
|
|
702,247 |
|
|
|
689,908 |
|
Assets |
|
|
1,507,454 |
|
|
|
1,307,866 |
|
|
|
1,276,079 |
|
|
|
1,357,479 |
|
|
|
1,255,696 |
|
Interest-bearing deposits |
|
|
850,041 |
|
|
|
782,533 |
|
|
|
758,061 |
|
|
|
804,146 |
|
|
|
765,537 |
|
Subordinated debentures and other borrowings |
|
|
65,521 |
|
|
|
37,532 |
|
|
|
21,651 |
|
|
|
36,712 |
|
|
|
21,653 |
|
Repurchase agreements |
|
|
31,533 |
|
|
|
7,411 |
|
|
|
7,982 |
|
|
|
13,239 |
|
|
|
5,915 |
|
Stockholders’ equity |
|
$ |
106,782 |
|
|
$ |
119,100 |
|
|
|
135,015 |
|
|
$ |
119,792 |
|
|
|
131,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tax equivalent
yield/cost (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
2.56 |
% |
|
|
2.18 |
% |
|
|
1.77 |
% |
|
|
2.15 |
% |
|
|
1.99 |
% |
Loans |
|
|
5.29 |
% |
|
|
4.63 |
% |
|
|
4.81 |
% |
|
|
4.77 |
% |
|
|
4.88 |
% |
Total interest-bearing assets |
|
|
4.22 |
% |
|
|
3.59 |
% |
|
|
3.29 |
% |
|
|
3.56 |
% |
|
|
3.52 |
% |
Interest-bearing deposits |
|
|
0.68 |
% |
|
|
0.39 |
% |
|
|
0.12 |
% |
|
|
0.35 |
% |
|
|
0.13 |
% |
Subordinated debentures and other borrowings |
|
|
4.83 |
% |
|
|
3.58 |
% |
|
|
2.14 |
% |
|
|
3.88 |
% |
|
|
2.18 |
% |
Repurchase agreements |
|
|
1.36 |
% |
|
|
1.45 |
% |
|
|
0.20 |
% |
|
|
1.10 |
% |
|
|
0.19 |
% |
Total interest-bearing liabilities |
|
|
0.99 |
% |
|
|
0.55 |
% |
|
|
0.17 |
% |
|
|
0.51 |
% |
|
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
7.41 |
% |
|
|
7.78 |
% |
|
|
10.21 |
% |
|
|
|
|
|
|
|
|
Tangible equity to tangible assets (3) |
|
|
5.13 |
% |
|
|
6.57 |
% |
|
|
9.00 |
% |
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
21.38 |
|
|
$ |
20.20 |
|
|
$ |
25.85 |
|
|
|
|
|
|
|
|
|
Tangible book value per share (3) |
|
$ |
14.43 |
|
|
$ |
16.84 |
|
|
$ |
22.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward of
allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
8,858 |
|
|
$ |
8,315 |
|
|
$ |
8,766 |
|
|
$ |
8,775 |
|
|
$ |
8,775 |
|
Charge-offs |
|
|
(101 |
) |
|
|
(106 |
) |
|
|
(70 |
) |
|
|
(336 |
) |
|
|
(978 |
) |
Recoveries |
|
|
34 |
|
|
|
149 |
|
|
|
79 |
|
|
|
352 |
|
|
|
478 |
|
Provision for loan losses |
|
|
- |
|
|
|
500 |
|
|
|
- |
|
|
|
- |
|
|
|
500 |
|
Ending balance |
|
$ |
8,791 |
|
|
$ |
8,858 |
|
|
$ |
8,775 |
|
|
$ |
8,791 |
|
|
$ |
8,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
$ |
3,326 |
|
|
$ |
4,823 |
|
|
$ |
5,230 |
|
|
|
|
|
|
|
|
|
Accruing loans over 90 days past due |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Real estate owned |
|
|
934 |
|
|
|
1,288 |
|
|
|
2,551 |
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
4,260 |
|
|
$ |
6,111 |
|
|
$ |
7,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days delinquent |
|
$ |
738 |
|
|
$ |
657 |
|
|
$ |
1,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to deposits |
|
|
64.67 |
% |
|
|
62.85 |
% |
|
|
56.88 |
% |
|
|
|
|
|
|
|
|
Loans 30-89 days delinquent and still accruing to gross loans
outstanding |
|
|
0.09 |
% |
|
|
0.09 |
% |
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
Total non-performing loans to gross loans outstanding |
|
|
0.39 |
% |
|
|
0.68 |
% |
|
|
0.79 |
% |
|
|
|
|
|
|
|
|
Total non-performing assets to total assets |
|
|
0.28 |
% |
|
|
0.45 |
% |
|
|
0.59 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to gross loans outstanding |
|
|
1.03 |
% |
|
|
1.25 |
% |
|
|
1.32 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to gross loans outstanding excluding PPP
loans |
|
|
1.03 |
% |
|
|
1.25 |
% |
|
|
1.36 |
% |
|
|
|
|
|
|
|
|
Allowance for loan losses to total non-performing loans |
|
|
264.31 |
% |
|
|
183.66 |
% |
|
|
167.78 |
% |
|
|
|
|
|
|
|
|
Net loan charge-offs to average loans (1) |
|
|
0.03 |
% |
|
|
-0.02 |
% |
|
|
-0.01 |
% |
|
|
0.00 |
% |
|
|
0.07 |
% |
(1 |
) |
Information is annualized. |
(2 |
) |
Net interest margin is presented on a fully tax equivalent basis,
using a 21% federal tax rate. |
(3 |
) |
Non-GAAP financial measures. See the “Non-GAAP Financial Measures”
section of this press release for a reconciliation to the most
comparable GAAP equivalent. |
LANDMARK BANCORP, INC. AND
SUBSIDIARIESNon-GAAP Finacials Measures
(unaudited)
|
|
As of or for the |
|
|
As of or for the |
|
(Dollars in thousands, except
per share amounts) |
|
three months ended, |
|
|
Year ended, |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
1,212 |
|
|
$ |
2,500 |
|
|
$ |
3,147 |
|
|
$ |
9,878 |
|
|
$ |
18,011 |
|
Add: acquisition costs |
|
|
3,043 |
|
|
|
134 |
|
|
|
- |
|
|
|
3,398 |
|
|
|
- |
|
Less: income tax expense (effective tax rate of 24.5%) |
|
|
(746 |
) |
|
|
(33 |
) |
|
|
- |
|
|
|
(833 |
) |
|
|
- |
|
Adjusted net earnings (A) |
|
$ |
3,509 |
|
|
$ |
2,601 |
|
|
$ |
3,147 |
|
|
$ |
12,443 |
|
|
$ |
18,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted (B) |
|
|
5,228,490 |
|
|
|
5,242,073 |
|
|
|
5,267,143 |
|
|
|
5,245,765 |
|
|
|
5,259,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net earnings per share (A/B) |
|
$ |
0.67 |
|
|
$ |
0.50 |
|
|
$ |
0.60 |
|
|
$ |
2.37 |
|
|
$ |
3.42 |
|
Adjusted return on average assets (1) |
|
|
0.92 |
% |
|
|
0.79 |
% |
|
|
0.98 |
% |
|
|
0.92 |
% |
|
|
1.43 |
% |
Adjusted return on average equity (1) |
|
|
13.04 |
% |
|
|
8.66 |
% |
|
|
9.25 |
% |
|
|
10.39 |
% |
|
|
13.68 |
% |
(1 |
) |
Information is annualized. |
Non-GAAP financial
ratio reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
|
$ |
13,952 |
|
|
$ |
9,458 |
|
|
$ |
9,550 |
|
|
$ |
41,270 |
|
|
$ |
37,256 |
|
Less: foreclosure and real estate owned expense |
|
|
(393 |
) |
|
|
(32 |
) |
|
|
(124 |
) |
|
|
(457 |
) |
|
|
(415 |
) |
Less: amortization of other intangibles |
|
|
(200 |
) |
|
|
(16 |
) |
|
|
(20 |
) |
|
|
(248 |
) |
|
|
(102 |
) |
Less: acquisition costs |
|
|
(3,043 |
) |
|
|
(134 |
) |
|
|
- |
|
|
|
(3,398 |
) |
|
|
- |
|
Adjusted non-interest expense (A) |
|
|
10,316 |
|
|
|
9,276 |
|
|
|
9,406 |
|
|
|
37,167 |
|
|
|
36,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (B) |
|
|
11,886 |
|
|
|
9,451 |
|
|
|
9,136 |
|
|
|
38,880 |
|
|
|
38,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
2,812 |
|
|
|
3,529 |
|
|
|
4,598 |
|
|
|
13,700 |
|
|
|
22,261 |
|
Less: losses (gains) on sales of investment securities, net |
|
|
750 |
|
|
|
353 |
|
|
|
- |
|
|
|
1,103 |
|
|
|
(1,138 |
) |
Less: gains on sales of premises and equipment and foreclosed
assets |
|
|
- |
|
|
|
- |
|
|
|
28 |
|
|
|
(114 |
) |
|
|
4 |
|
Adjusted non-interest income (C) |
|
$ |
3,562 |
|
|
$ |
3,882 |
|
|
$ |
4,626 |
|
|
$ |
14,689 |
|
|
$ |
21,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (A/(B+C)) |
|
|
66.8 |
% |
|
|
69.6 |
% |
|
|
68.3 |
% |
|
|
69.4 |
% |
|
|
61.8 |
% |
Non-interest income to total income (C/(B+C)) |
|
|
23.1 |
% |
|
|
29.1 |
% |
|
|
33.6 |
% |
|
|
27.4 |
% |
|
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
$ |
111,433 |
|
|
$ |
105,484 |
|
|
$ |
135,643 |
|
|
|
|
|
|
|
|
|
Less: goodwill and other intangible assets |
|
|
(36,205 |
) |
|
|
(17,568 |
) |
|
|
(17,616 |
) |
|
|
|
|
|
|
|
|
Tangible equity (D) |
|
$ |
75,228 |
|
|
$ |
87,916 |
|
|
$ |
118,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,502,867 |
|
|
$ |
1,355,296 |
|
|
$ |
1,328,968 |
|
|
|
|
|
|
|
|
|
Less: goodwill and other intangible assets |
|
|
(36,205 |
) |
|
|
(17,568 |
) |
|
|
(17,616 |
) |
|
|
|
|
|
|
|
|
Tangible assets (E) |
|
$ |
1,466,662 |
|
|
$ |
1,337,728 |
|
|
$ |
1,311,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets (D/E) |
|
|
5.13 |
% |
|
|
6.57 |
% |
|
|
9.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period (F) |
|
|
5,213,232 |
|
|
|
5,221,966 |
|
|
|
5,247,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (D/F) |
|
$ |
14.43 |
|
|
$ |
16.84 |
|
|
$ |
22.49 |
|
|
|
|
|
|
|
|
|
Landmark Bancorp (NASDAQ:LARK)
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