Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted
earnings per share of $0.64 for the three months ended March 31,
2023, compared to $0.23 per share in the fourth quarter of 2022 and
$0.59 per share in the same quarter last year. Net earnings for the
first quarter of 2023 amounted to $3.4 million, compared to $1.2
million in the prior quarter and $3.1 million for the first quarter
of 2022. For the three months ended March 31, 2023, the return on
average assets was 0.90%, the return on average equity was 12.04%,
and the efficiency ratio was 70.1%.
In making this announcement, Michael E.
Scheopner, President and Chief Executive Officer of Landmark, said,
“We are pleased with our first quarter results, which included
continued solid loan growth, lower expenses, and good credit
quality. Compared to the fourth quarter 2022, total gross loans
increased by $19.6 million, or 9.4% on an annualized basis.
Deposits decreased $6.6 million, or 2.1%, during the first quarter
of 2023 as expected mainly due to a seasonal decline in public fund
deposit balances. We experienced very little deposit runoff in the
wake of the bank closures in March and we are very confident in the
strength of our deposit base and our overall liquidity. Net
interest income increased $2.3 million, or 26.6%, compared to the
first quarter of 2022 but declined $939,000, or 7.9%, from the
prior quarter as rising interest rates impacted our funding costs.
Net interest margin increased to 3.31% during the first quarter of
2023 as compared to 2.99% in the first quarter of last year but
declined from 3.53% in the prior quarter. Non-interest income
declined 1.9% compared to the same period last year due to lower
gains on sales of residential mortgage loans but increased $683,000
from the prior quarter as a result of investment securities losses
of $750,000 taken in the fourth quarter 2022. This quarter
non-interest expense declined $3.6 million from the prior quarter
mainly due to lower expenses overall and acquisition costs of $3.0
million in the prior quarter that did not reoccur in the first
quarter 2023. “
Mr. Scheopner continued, “Credit quality remains
very strong as non-accrual loans and delinquencies continue to
remain low. Landmark recorded net loan charge-offs of $47,000 in
the first quarter of 2023 compared to net loan recoveries of
$82,000 in the first quarter of 2022 and net loan charge-offs of
$67,000 in the fourth quarter of 2022. Non-accrual loans totaled
$3.3 million or 0.38% of gross loans at March 31, 2023 and have
declined $1.4 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 $10.3 million at March 31, 2023, or 1.18%
of period end gross loans. The adoption of Accounting Standards
Update 2016-13, Financial Instruments - Credit Losses (Topic 326),
commonly referred to as “CECL,” on January 1, 2023, resulted in an
increase of $1.5 million in our allowance for credit losses. Our
equity to assets ratio totaled 7.74% while loans to deposits
totaled 66.4%.”
Total assets at March 31, 2023 were $1.5
billion, total gross loans were $869.8 million and total deposits
were $1.3 billion.Landmark’s Board of Directors declared a cash
dividend of $0.21 per share, to be paid May 31, 2023, to common
stockholders of record as of the close of business on May 17,
2023.
Management will host a conference call to
discuss the Company’s financial results at 10:00 a.m. (Central
time) on Wednesday, May 3, 2023. Investors may participate via
telephone by dialing (833) 470-1428 and using access code 507849. A
replay of the call will be available through June 2, 2023, by
dialing (866) 813-9403 and using access code 453843.
SUMMARY OF FIRST QUARTER
RESULTS
Net Interest Income
Net interest income in the first quarter of 2023
amounted to $10.9 million representing a decrease of $939,000
compared to the previous quarter. This decrease in net interest
income was due mainly to higher interest expense on deposits and
borrowed funds but offset mainly by growth in interest income on
loans. The net interest margin totaled 3.31% during the first
quarter compared to 3.53% in the prior quarter. Compared to the
previous quarter, interest income on loans increased $275,000, or
2.5%, to $11.4 million due to both higher rates and balances while
the average tax-equivalent yield on the loan portfolio increased 14
basis points to 5.43%. Interest income on investment securities
grew to $3.1 million on slightly lower average balances but higher
rates. The average tax-equivalent yield on investment securities
totaled 2.68% this quarter compared to 2.56% in the prior
quarter.
Interest expense on deposits increased $1.1
million in the first quarter 2023 mainly due to higher rates and
average balances on interest-bearing deposits. The average rate on
interest-bearing deposits increased this quarter to 1.18% compared
to 0.68% in the prior quarter. Interest expense on total borrowed
funds grew to $1.1 million as the average rate paid increased 99
basis points to 4.69%.
Non-Interest Income
Non-interest income totaled $3.5 million for the
first quarter of 2023, a decrease of $68,000, or 1.9%, compared to
the same period last year and an increase of $683,000, or 24.3%,
from the previous quarter. The decrease in non-interest income
during the first quarter of 2023 compared to the same period last
year was primarily due to a decline of $212,000 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 same quarter last year. Fees
and service charges increased $170,000, or 7.8%, over the same
period last year mainly due to increased deposit-related income. A
loss of $750,000 was recorded in the fourth of 2022 on the sale of
certain low yielding investment securities in our portfolio while
there were no security gains or losses in the first quarter of 2023
or 2022.
Non-Interest Expense
During the first quarter of 2023, non-interest
expense totaled $10.3 million, an increase of $1.5 million, or
17.0%, over the same period in 2022 but a decrease of $3.6 million,
or 25.9%, compared to the prior quarter. Compared to the same
period last year, higher costs this year for compensation and
benefits, occupancy and equipment, data processing and other
non-interest expenses were primarily due to higher operating costs
associated with the Freedom Bank acquisition, while amortization
expense increased $145,000 this quarter due to the core deposit
intangible recorded for this acquisition. The decrease in
non-interest expense compared to the prior quarter was primarily
due to acquisition costs of $3.0 million which did not reoccur.
Also, during the fourth quarter of 2022, a one-time valuation
allowance of $354,000 was recorded on certain real estate owned and
included in other non-interest expense.
Income Tax Expense
Landmark recorded income tax expense of $693,000
in the first quarter of 2023 compared to income tax expense of
$737,000 in the first quarter of 2022 and an income tax benefit of
$466,000 in the fourth quarter of 2022. The effective tax rate
decreased to 17.1% in the first quarter of 2023 compared to 19.0%
in the first quarter of 2022 and (62.5%) in the fourth 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.
Liquidity Highlights
In addition to local retail, commercial and
public fund deposits, the Company has access to multiple sources of
brokered deposits that can be utilized for liquidity. Landmark also
has diverse sources of liquidity available through both secured and
unsecured borrowing lines of credit. At March 31, 2023, Landmark
had collateral pledged to the Federal Home Loan Bank (“FHLB”) that
would allow for an additional $151.1 million of FHLB borrowings.
Additionally, investment securities were pledged to the Federal
Reserve discount window that creates a borrowing capacity with the
Federal Reserve of $64.6 million. Landmark also had various other
federal funds agreements, both secured and unsecured, with
correspondent banks totaling approximately $30.0 million in
available credit at March 31, 2023.
As of March 31, 2023, Landmark had unpledged
available-for-sale investment securities with a fair value of $71.8
million as well as approximately $111.9 million of pledged
investment securities in excess of required levels. The average
life of the Company’s investment portfolio is approximately 4.2
years and is projected to generate cash flow of $72.9 million over
the next 12 months.
Balance Sheet Highlights
As of March 31, 2023, gross loans totaled $869.8
million, an increase of $19.6 million, or 9.4% annualized since
December 31, 2022. During the quarter, loan growth was comprised of
commercial real estate (growth of $12.8 million), residential real
estate (growth of $9.1 million), consumer (growth of $2.2 million)
and construction and land loans (growth of $0.4 million).
Investment securities increased $863,000, during the first quarter
of 2023, while gross unrealized net losses on these investment
securities decreased from $33.2 million at December 31, 2022 to
$26.5 million at March 31, 2023. Deposit balances decreased $6.6
million, or 2.1% on an annualized basis, to $1.3 billion at March
31, 2023. The decrease in deposits was mainly driven by seasonal
decline in public fund deposit accounts. Growth in non-interest
demand (growth of $11.8 million) and certificate of deposit
accounts (growth of $20.9 million) this quarter was mainly offset
by lower money market and interest checking accounts. Average
borrowings, including Federal Home Loan Bank debt and repurchase
agreements declined $2.6 million this quarter. At March 31, 2023,
the loan to deposits ratio was 66.4% compared to 64.7% in the prior
quarter and 54.9% in the same period last year.
Total deposits include uninsured deposits of
$224.7 million and $192.9 million as of March 31, 2023 and December
31, 2022, respectively. This represents less than 18% of our total
deposits at March 31, 2023 and compares favorably with other
similar community banking organizations. Over 99% of Landmark’s
total deposits were considered core deposits at March 31, 2023.
These deposit balances are from retail, commercial and public fund
customers located in the markets where the Company has bank branch
locations.
Stockholders’ equity increased to $117.7 million
(book value of $22.58 per share) as of March 31, 2023, from $111.4
million (book value of $21.38 per share) as of December 31, 2022,
mainly due to a decrease in other comprehensive losses during the
first quarter of 2023 related to the decline in the unrealized
losses on investment securities mentioned above but offset by the
after-tax CECL adjustment of $1.2 million. The ratio of equity to
total assets increased to 7.74% on March 31, 2023, from 7.41% on
December 31, 2022.
The allowance for credit losses totaled $10.3
million, or 1.18% of total gross loans on March 31, 2023, compared
to $8.8 million, or 1.03% of total gross loans on December 31,
2022. The increase in the allowance for credit losses was primarily
due to a $1.5 million increase related to the adoption of CECL on
January 1, 2023. Net loan charge-offs totaled $47,000 in the first
quarter of 2023, compared to $67,000 during the fourth quarter of
2022 and net loan recoveries of $82,000 during the same quarter
last year. The ratio of annualized net loan charge-offs to total
average loans was 0.02% in the first quarter of 2023, (0.05%) in
the first quarter of last year and 0.03% in the prior quarter. A
provision for credit losses of $49,000 was made in the first
quarter of 2023 related to unfunded loan commitments and
held-to-maturity investments securities. No provision for credit
losses was recorded in the fourth quarter of 2022 while a credit
provision of $500,000 was recorded in the first quarter 2022.
Non-performing loans totaled $3.3 million, or
0.38% of gross loans, while loans 30-89 days delinquent totaled
$1.5 million, or 0.17% of gross loans, as of March 31, 2023. Real
estate owned totaled $0.9 million at March 31, 2023.
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 31 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 (2), 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, 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 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) 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
SUBSIDIARIESConsolidated Balance Sheets
(unaudited)
(Dollars in thousands) |
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,764 |
|
|
$ |
23,156 |
|
|
$ |
49,234 |
|
|
$ |
30,413 |
|
|
$ |
106,319 |
|
|
$ |
189,213 |
|
Interest-bearing deposits at other banks |
|
|
8,586 |
|
|
|
9,084 |
|
|
|
8,844 |
|
|
|
8,360 |
|
|
|
6,381 |
|
|
|
7,378 |
|
Investment securities available-for-sale, at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasury securities |
|
|
121,759 |
|
|
|
123,111 |
|
|
|
127,445 |
|
|
|
135,459 |
|
|
|
119,882 |
|
|
|
42,675 |
|
U.S. federal agency obligations |
|
|
1,993 |
|
|
|
1,988 |
|
|
|
4,979 |
|
|
|
14,931 |
|
|
|
17,013 |
|
|
|
17,195 |
|
Municipal obligations, tax exempt |
|
|
128,281 |
|
|
|
127,262 |
|
|
|
128,392 |
|
|
|
134,994 |
|
|
|
130,915 |
|
|
|
137,984 |
|
Municipal obligations, taxable |
|
|
73,468 |
|
|
|
67,244 |
|
|
|
61,959 |
|
|
|
49,356 |
|
|
|
45,586 |
|
|
|
40,046 |
|
Agency mortgage-backed securities |
|
|
164,669 |
|
|
|
169,701 |
|
|
|
161,331 |
|
|
|
151,893 |
|
|
|
153,587 |
|
|
|
142,817 |
|
Total investment securities available-for-sale |
|
|
490,170 |
|
|
|
489,306 |
|
|
|
484,106 |
|
|
|
486,633 |
|
|
|
466,983 |
|
|
|
380,717 |
|
Investment securities held-to-maturity |
|
|
3,467 |
|
|
|
3,524 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Bank stocks, at cost |
|
|
6,876 |
|
|
|
5,470 |
|
|
|
6,641 |
|
|
|
2,881 |
|
|
|
2,856 |
|
|
|
2,905 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family residential real estate |
|
|
246,079 |
|
|
|
236,982 |
|
|
|
205,466 |
|
|
|
192,517 |
|
|
|
169,514 |
|
|
|
166,081 |
|
Construction and land |
|
|
23,137 |
|
|
|
22,725 |
|
|
|
18,119 |
|
|
|
23,092 |
|
|
|
25,408 |
|
|
|
27,644 |
|
Commercial real estate |
|
|
316,900 |
|
|
|
304,074 |
|
|
|
228,669 |
|
|
|
209,879 |
|
|
|
196,736 |
|
|
|
198,472 |
|
Commercial |
|
|
172,331 |
|
|
|
173,415 |
|
|
|
144,582 |
|
|
|
137,929 |
|
|
|
127,226 |
|
|
|
132,154 |
|
Paycheck Protection Program (PPP) |
|
|
21 |
|
|
|
21 |
|
|
|
410 |
|
|
|
652 |
|
|
|
5,218 |
|
|
|
17,179 |
|
Agriculture |
|
|
80,499 |
|
|
|
84,283 |
|
|
|
86,114 |
|
|
|
78,240 |
|
|
|
82,484 |
|
|
|
94,267 |
|
Municipal |
|
|
2,004 |
|
|
|
2,026 |
|
|
|
2,036 |
|
|
|
2,076 |
|
|
|
2,212 |
|
|
|
2,050 |
|
Consumer |
|
|
28,835 |
|
|
|
26,664 |
|
|
|
25,911 |
|
|
|
25,531 |
|
|
|
24,751 |
|
|
|
24,541 |
|
Total gross loans |
|
|
869,806 |
|
|
|
850,190 |
|
|
|
711,307 |
|
|
|
669,916 |
|
|
|
633,549 |
|
|
|
662,388 |
|
Net deferred loan (fees) costs and loans in process |
|
|
2 |
|
|
|
(250 |
) |
|
|
(311 |
) |
|
|
229 |
|
|
|
(43 |
) |
|
|
(380 |
) |
Allowance for credit losses |
|
|
(10,267 |
) |
|
|
(8,791 |
) |
|
|
(8,858 |
) |
|
|
(8,315 |
) |
|
|
(8,357 |
) |
|
|
(8,775 |
) |
Loans, net |
|
|
859,541 |
|
|
|
841,149 |
|
|
|
702,138 |
|
|
|
661,830 |
|
|
|
625,149 |
|
|
|
653,233 |
|
Loans held for sale |
|
|
1,839 |
|
|
|
2,488 |
|
|
|
2,741 |
|
|
|
6,264 |
|
|
|
5,424 |
|
|
|
4,795 |
|
Bank owned life insurance |
|
|
37,541 |
|
|
|
37,323 |
|
|
|
32,672 |
|
|
|
32,483 |
|
|
|
32,293 |
|
|
|
32,106 |
|
Premises and equipment, net |
|
|
24,241 |
|
|
|
24,327 |
|
|
|
20,628 |
|
|
|
20,679 |
|
|
|
20,919 |
|
|
|
20,803 |
|
Goodwill |
|
|
32,199 |
|
|
|
32,199 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
|
|
17,532 |
|
Other intangible assets, net |
|
|
3,809 |
|
|
|
4,006 |
|
|
|
36 |
|
|
|
52 |
|
|
|
67 |
|
|
|
84 |
|
Mortgage servicing rights |
|
|
3,652 |
|
|
|
3,813 |
|
|
|
3,980 |
|
|
|
4,025 |
|
|
|
4,128 |
|
|
|
4,193 |
|
Real estate owned, net |
|
|
934 |
|
|
|
934 |
|
|
|
1,288 |
|
|
|
1,288 |
|
|
|
1,288 |
|
|
|
2,551 |
|
Other assets |
|
|
24,198 |
|
|
|
26,088 |
|
|
|
25,456 |
|
|
|
19,911 |
|
|
|
17,095 |
|
|
|
13,458 |
|
Total assets |
|
$ |
1,520,817 |
|
|
$ |
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 |
|
|
421,971 |
|
|
|
410,142 |
|
|
|
347,942 |
|
|
|
343,107 |
|
|
|
350,342 |
|
|
|
350,005 |
|
Money market and checking |
|
|
588,366 |
|
|
|
626,659 |
|
|
|
504,973 |
|
|
|
520,056 |
|
|
|
517,936 |
|
|
|
536,868 |
|
Savings |
|
|
169,504 |
|
|
|
170,570 |
|
|
|
170,988 |
|
|
|
170,419 |
|
|
|
167,823 |
|
|
|
155,501 |
|
Certificates of deposit |
|
|
114,189 |
|
|
|
93,278 |
|
|
|
93,234 |
|
|
|
97,885 |
|
|
|
103,464 |
|
|
|
106,107 |
|
Total deposits |
|
|
1,294,030 |
|
|
|
1,300,649 |
|
|
|
1,117,137 |
|
|
|
1,131,467 |
|
|
|
1,139,565 |
|
|
|
1,148,481 |
|
Federal Home Loan Bank borrowings |
|
|
37,804 |
|
|
|
8,200 |
|
|
|
74,900 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Subordinated debentures |
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
|
|
21,651 |
|
Other borrowings |
|
|
28,750 |
|
|
|
38,402 |
|
|
|
16,349 |
|
|
|
6,223 |
|
|
|
7,004 |
|
|
|
7,403 |
|
Accrued interest and other liabilities |
|
|
20,864 |
|
|
|
22,532 |
|
|
|
19,775 |
|
|
|
15,708 |
|
|
|
14,701 |
|
|
|
15,790 |
|
Total liabilities |
|
|
1,403,099 |
|
|
|
1,391,434 |
|
|
|
1,249,812 |
|
|
|
1,175,049 |
|
|
|
1,182,921 |
|
|
|
1,193,325 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
52 |
|
|
|
52 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Additional paid-in capital |
|
|
84,413 |
|
|
|
84,273 |
|
|
|
79,329 |
|
|
|
79,284 |
|
|
|
79,206 |
|
|
|
79,120 |
|
Retained earnings |
|
|
53,231 |
|
|
|
52,174 |
|
|
|
58,114 |
|
|
|
56,662 |
|
|
|
54,677 |
|
|
|
52,593 |
|
Treasury stock, at cost |
|
|
- |
|
|
|
- |
|
|
|
(1,040 |
) |
|
|
(538 |
) |
|
|
- |
|
|
|
- |
|
Accumulated other comprehensive (loss) income |
|
|
(19,978 |
) |
|
|
(25,066 |
) |
|
|
(30,969 |
) |
|
|
(18,156 |
) |
|
|
(10,420 |
) |
|
|
3,880 |
|
Total stockholders’ equity |
|
|
117,718 |
|
|
|
111,433 |
|
|
|
105,484 |
|
|
|
117,302 |
|
|
|
123,513 |
|
|
|
135,643 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,520,817 |
|
|
$ |
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, |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
11,376 |
|
|
$ |
11,101 |
|
|
$ |
7,191 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,317 |
|
|
|
2,267 |
|
|
|
991 |
|
Tax-exempt |
|
|
786 |
|
|
|
786 |
|
|
|
722 |
|
Interest-bearing deposits at banks |
|
|
98 |
|
|
|
89 |
|
|
|
62 |
|
Total interest income |
|
|
14,577 |
|
|
|
14,243 |
|
|
|
8,966 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2,539 |
|
|
|
1,452 |
|
|
|
195 |
|
Borrowed funds |
|
|
1,091 |
|
|
|
905 |
|
|
|
126 |
|
Total interest expense |
|
|
3,630 |
|
|
|
2,357 |
|
|
|
321 |
|
Net interest income |
|
|
10,947 |
|
|
|
11,886 |
|
|
|
8,645 |
|
Provision for credit
losses |
|
|
49 |
|
|
|
- |
|
|
|
(500 |
) |
Net interest income after provision for credit losses |
|
|
10,898 |
|
|
|
11,886 |
|
|
|
9,145 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
|
2,358 |
|
|
|
2,572 |
|
|
|
2,188 |
|
Gains on sales of loans, net |
|
|
693 |
|
|
|
417 |
|
|
|
905 |
|
Bank owned life insurance |
|
|
218 |
|
|
|
214 |
|
|
|
187 |
|
(Losses) gains on sales of investment securities, net |
|
|
- |
|
|
|
(750 |
) |
|
|
- |
|
Other |
|
|
226 |
|
|
|
359 |
|
|
|
283 |
|
Total non-interest income |
|
|
3,495 |
|
|
|
2,812 |
|
|
|
3,563 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
5,542 |
|
|
|
5,626 |
|
|
|
4,775 |
|
Occupancy and equipment |
|
|
1,369 |
|
|
|
1,373 |
|
|
|
1,233 |
|
Data processing |
|
|
589 |
|
|
|
495 |
|
|
|
340 |
|
Amortization of mortgage servicing rights and other
intangibles |
|
|
461 |
|
|
|
481 |
|
|
|
316 |
|
Professional fees |
|
|
491 |
|
|
|
554 |
|
|
|
451 |
|
Acquisition costs |
|
|
- |
|
|
|
3,043 |
|
|
|
- |
|
Other |
|
|
1,891 |
|
|
|
2,380 |
|
|
|
1,723 |
|
Total non-interest expense |
|
|
10,343 |
|
|
|
13,952 |
|
|
|
8,838 |
|
Earnings before income
taxes |
|
|
4,050 |
|
|
|
746 |
|
|
|
3,870 |
|
Income tax expense |
|
|
693 |
|
|
|
(466 |
) |
|
|
737 |
|
Net earnings |
|
$ |
3,357 |
|
|
$ |
1,212 |
|
|
$ |
3,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.64 |
|
|
$ |
0.23 |
|
|
$ |
0.60 |
|
Diluted |
|
|
0.64 |
|
|
|
0.23 |
|
|
|
0.59 |
|
Dividends per share (1) |
|
|
0.21 |
|
|
|
0.20 |
|
|
|
0.20 |
|
Shares outstanding at end of
period (1) |
|
|
5,215,575 |
|
|
|
5,213,232 |
|
|
|
5,247,332 |
|
Weighted average common shares
outstanding - basic (1) |
|
|
5,213,125 |
|
|
|
5,214,698 |
|
|
|
5,247,332 |
|
Weighted average common shares
outstanding - diluted (1) |
|
|
5,220,688 |
|
|
|
5,228,490 |
|
|
|
5,267,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net interest
income |
|
$ |
11,144 |
|
|
$ |
12,089 |
|
|
$ |
8,840 |
|
(1 |
) |
Share and per share values at or for the periods ended March 31,
2022 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 |
|
(Dollars in thousands, except
per share amounts) |
|
three months ended, |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Performance
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
0.90 |
% |
|
|
0.32 |
% |
|
|
0.97 |
% |
Return on average equity (1) |
|
|
12.04 |
% |
|
|
4.50 |
% |
|
|
9.59 |
% |
Net interest margin (1)(2) |
|
|
3.31 |
% |
|
|
3.53 |
% |
|
|
2.99 |
% |
Effective tax rate |
|
|
17.1 |
% |
|
|
-62.5 |
% |
|
|
19.0 |
% |
Efficiency ratio (3) |
|
|
70.1 |
% |
|
|
66.8 |
% |
|
|
71.9 |
% |
Non-interest income to total income (3) |
|
|
24.2 |
% |
|
|
23.1 |
% |
|
|
28.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
499,538 |
|
|
$ |
504,495 |
|
|
$ |
421,996 |
|
Loans |
|
|
850,331 |
|
|
|
832,285 |
|
|
|
636,032 |
|
Assets |
|
|
1,511,077 |
|
|
|
1,507,454 |
|
|
|
1,305,813 |
|
Interest-bearing deposits |
|
|
872,900 |
|
|
|
850,041 |
|
|
|
792,354 |
|
Subordinated debentures and other borrowings |
|
|
66,868 |
|
|
|
65,521 |
|
|
|
21,651 |
|
Repurchase agreements |
|
|
27,548 |
|
|
|
31,533 |
|
|
|
6,825 |
|
Stockholders’ equity |
|
$ |
113,115 |
|
|
$ |
106,782 |
|
|
|
132,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tax equivalent
yield/cost (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
2.68 |
% |
|
|
2.56 |
% |
|
|
1.83 |
% |
Loans |
|
|
5.43 |
% |
|
|
5.29 |
% |
|
|
4.59 |
% |
Total interest-bearing assets |
|
|
4.39 |
% |
|
|
4.22 |
% |
|
|
3.10 |
% |
Interest-bearing deposits |
|
|
1.18 |
% |
|
|
0.68 |
% |
|
|
0.10 |
% |
Subordinated debentures and other borrowings |
|
|
5.65 |
% |
|
|
4.83 |
% |
|
|
2.30 |
% |
Repurchase agreements |
|
|
2.36 |
% |
|
|
1.36 |
% |
|
|
0.18 |
% |
Total interest-bearing liabilities |
|
|
1.52 |
% |
|
|
0.99 |
% |
|
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets |
|
|
7.74 |
% |
|
|
7.41 |
% |
|
|
9.45 |
% |
Tangible equity to tangible assets (3) |
|
|
5.50 |
% |
|
|
5.13 |
% |
|
|
8.22 |
% |
Book value per share |
|
$ |
22.58 |
|
|
$ |
21.38 |
|
|
$ |
23.54 |
|
Tangible book value per share (3) |
|
$ |
15.67 |
|
|
$ |
14.43 |
|
|
$ |
20.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollforward
of allowance for credit losses (loans): |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
8,791 |
|
|
$ |
8,858 |
|
|
$ |
8,775 |
|
Adoption of CECL |
|
|
1,523 |
|
|
|
- |
|
|
|
- |
|
Charge-offs |
|
|
(108 |
) |
|
|
(101 |
) |
|
|
(53 |
) |
Recoveries |
|
|
61 |
|
|
|
34 |
|
|
|
135 |
|
Provision for credit losses |
|
|
- |
|
|
|
- |
|
|
|
(500 |
) |
Ending balance |
|
$ |
10,267 |
|
|
$ |
8,791 |
|
|
$ |
8,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
$ |
3,311 |
|
|
$ |
3,326 |
|
|
$ |
4,676 |
|
Accruing loans over 90 days past due |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Real estate owned |
|
|
934 |
|
|
|
934 |
|
|
|
1,288 |
|
Total non-performing assets |
|
$ |
4,245 |
|
|
$ |
4,260 |
|
|
$ |
5,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days delinquent |
|
$ |
1,490 |
|
|
$ |
738 |
|
|
$ |
846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans to deposits |
|
|
66.42 |
% |
|
|
64.67 |
% |
|
|
54.86 |
% |
Loans 30-89 days delinquent and still accruing to gross loans
outstanding |
|
|
0.17 |
% |
|
|
0.09 |
% |
|
|
0.13 |
% |
Total non-performing loans to gross loans outstanding |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.74 |
% |
Total non-performing assets to total assets |
|
|
0.28 |
% |
|
|
0.28 |
% |
|
|
0.46 |
% |
Allowance for credit losses to gross loans outstanding |
|
|
1.18 |
% |
|
|
1.03 |
% |
|
|
1.32 |
% |
Allowance for credit losses to gross loans outstanding excluding
PPP loans |
|
|
1.18 |
% |
|
|
1.03 |
% |
|
|
1.33 |
% |
Allowance for credit losses to total non-performing loans |
|
|
310.09 |
% |
|
|
264.31 |
% |
|
|
178.72 |
% |
Net loan charge-offs to average loans (1) |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
-0.05 |
% |
(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 |
|
(Dollars in thousands, except
per share amounts) |
|
three months ended, |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
3,357 |
|
|
$ |
1,212 |
|
|
$ |
3,133 |
|
Add: acquisition costs |
|
|
- |
|
|
|
3,043 |
|
|
|
- |
|
Less: income tax expense (effective tax rate of 24.5%) |
|
|
- |
|
|
|
(746 |
) |
|
|
- |
|
Adjusted net earnings (A) |
|
$ |
3,357 |
|
|
$ |
3,509 |
|
|
$ |
3,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted (B) |
|
|
5,220,688 |
|
|
|
5,228,490 |
|
|
|
5,267,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net earnings per share (A/B) |
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
0.59 |
|
Adjusted return on average assets (1) |
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
0.97 |
% |
Adjusted return on average equity (1) |
|
|
12.04 |
% |
|
|
13.04 |
% |
|
|
9.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Information is
annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
ratio reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
|
$ |
10,343 |
|
|
$ |
13,952 |
|
|
$ |
8,838 |
|
Less: foreclosure and real estate owned expense |
|
|
(17 |
) |
|
|
(393 |
) |
|
|
(124 |
) |
Less: amortization of other intangibles |
|
|
(197 |
) |
|
|
(200 |
) |
|
|
(17 |
) |
Less: acquisition costs |
|
|
- |
|
|
|
(3,043 |
) |
|
|
- |
|
Adjusted non-interest expense (A) |
|
|
10,129 |
|
|
|
10,316 |
|
|
|
8,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (B) |
|
|
10,947 |
|
|
|
11,886 |
|
|
|
8,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
3,495 |
|
|
|
2,812 |
|
|
|
3,563 |
|
Less: losses (gains) on sales of investment securities, net |
|
|
- |
|
|
|
750 |
|
|
|
- |
|
Less: gains on sales of premises and equipment and foreclosed
assets |
|
|
(1 |
) |
|
|
- |
|
|
|
(114 |
) |
Adjusted non-interest income (C) |
|
$ |
3,494 |
|
|
$ |
3,562 |
|
|
$ |
3,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (A/(B+C)) |
|
|
70.1 |
% |
|
|
66.8 |
% |
|
|
71.9 |
% |
Non-interest income to total income (C/(B+C)) |
|
|
24.2 |
% |
|
|
23.1 |
% |
|
|
28.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
$ |
117,718 |
|
|
$ |
111,433 |
|
|
$ |
123,513 |
|
Less: goodwill and other intangible assets |
|
|
(36,008 |
) |
|
|
(36,205 |
) |
|
|
(17,599 |
) |
Tangible equity (D) |
|
$ |
81,710 |
|
|
$ |
75,228 |
|
|
$ |
105,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,520,817 |
|
|
$ |
1,502,867 |
|
|
$ |
1,306,434 |
|
Less: goodwill and other intangible assets |
|
|
(36,008 |
) |
|
|
(36,205 |
) |
|
|
(17,599 |
) |
Tangible assets (E) |
|
$ |
1,484,809 |
|
|
$ |
1,466,662 |
|
|
$ |
1,288,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets (D/E) |
|
|
5.50 |
% |
|
|
5.13 |
% |
|
|
8.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period (F) |
|
|
5,215,575 |
|
|
|
5,213,232 |
|
|
|
5,247,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (D/F) |
|
$ |
15.67 |
|
|
$ |
14.43 |
|
|
$ |
20.18 |
|
Landmark Bancorp (NASDAQ:LARK)
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From Apr 2024 to May 2024
Landmark Bancorp (NASDAQ:LARK)
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From May 2023 to May 2024