Landmark Bancorp, Inc. (NASDAQ:LARK) Q3 2024 Earnings Conference Call October 31, 2024 11:00 AM ET Company Participants Abby Wendel – President and Chief Executive Officer Mark Herpich – Chief Financial Officer Raymond McLanahan – Chief Credit Officer Conference Call Participants Ross Haberman – RLH Investments Operator Hello, everyone, and welcome to today's Landmark Bancorp Third Quarter Earnings Call. My name is Seb, and I'll be the operator for your call today. [Operator Instructions] I will now hand th ...

Financial Performance - Landmark Bancorp reported diluted earnings per share of $0.72 for Q3 2024, a 30.5% increase from the prior quarter and a 36.5% increase year-over-year[1]. - Net earnings for Q3 2024 reached $3.9 million, up from $3.0 million in Q2 2024 and $2.9 million in Q3 2023, reflecting a 30.5% quarter-over-quarter growth and a 36.6% year-over-year growth[1][3]. - Basic earnings per share rose to $0.72, up from $0.55 in the previous quarter, marking a 30.9% increase[19]. - Net earnings for the quarter were $3,931,000, representing an increase of 30.6% from $3,012,000 in the previous quarter[19]. Loan and Deposit Growth - Total loans increased by $21.3 million, or 8.6% annualized, driven by strong growth in residential mortgage, agriculture, and commercial real estate loans[3]. - As of September 30, 2024, gross loans totaled $1.0 billion, with a loan-to-deposit ratio of 77.6%[10][11]. - Total deposits rose to $1,275,502 thousand, compared to $1,250,482 thousand in the prior quarter, marking an increase of 2.00%[17]. - The net loans increased to $990,242 thousand from $969,089 thousand, showing a growth of 2.37%[17]. Income and Expenses - Net interest income grew by 5.7% to $11.6 million, with a net interest margin expanding to 3.30% from 3.21% in the prior quarter[6]. - Total interest income for the three months ended September 30, 2024, was $19,022,000, an increase of 4.6% from $18,180,000 in the previous quarter[19]. - Non-interest income totaled $4.3 million, an increase of $533,000, or 14.3%, from the previous quarter, primarily due to higher fees and a gain on the sale of a former branch[7]. - Total non-interest expense decreased to $10,559,000 from $11,095,000 in the previous quarter, a reduction of 4.8%[19]. Asset Management - Total assets as of September 30, 2024, increased to $1,563,651 thousand from $1,560,754 thousand as of June 30, 2024, reflecting a growth of 0.12%[17]. - Total gross loans reached $1,001,849 thousand, up from $980,575 thousand in the previous quarter, representing a growth of 2.73%[17]. - Cash and cash equivalents decreased to $21,211 thousand from $23,889 thousand, a decline of 11.16%[17]. - Investment securities available-for-sale totaled $411,012 thousand, down from $420,459 thousand, a decrease of 1.06%[17]. Equity and Capital - Stockholders' equity increased to $139.7 million, with a book value of $25.39 per share, up from $128.3 million and $23.45 per share in the prior quarter[12]. - The common stock remained stable at $55, with additional paid-in capital increasing to $89,532 thousand from $89,469 thousand[17]. - Retained earnings increased to $60,549 thousand from $57,774 thousand, reflecting a growth of 4.83%[17]. - Total stockholders' equity rose to $139,691 million, up from $128,254 million[24]. Credit Quality - The allowance for credit losses was $11.5 million, or 1.15% of total gross loans, with a provision for credit losses of $500,000 recorded in Q3 2024[13]. - Non-performing loans rose to $13.4 million, or 1.34% of gross loans, compared to $5.0 million, or 0.51% of gross loans in the prior quarter[14]. - Total non-performing assets increased to $13,843 thousand, up from $5,435 thousand[21]. - Loans 30-89 days delinquent rose to $7,301 thousand, compared to $1,872 thousand previously[21]. Efficiency and Returns - Return on average assets increased to 1.00% for September 30, 2024, compared to 0.78% for June 30, 2024[20]. - Return on average equity improved to 11.82% for September 30, 2024, up from 9.72% for June 30, 2024[20]. - The efficiency ratio improved to 66.5% for September 30, 2024, down from 67.9% for June 30, 2024[20]. - Tangible equity increased to $104,585 million, compared to $92,977 million previously[24].

Financial Performance - Net earnings for Q2 2024 were $3.0 million, a decrease of $350,000 or 10.4% from Q2 2023's $3.4 million[83]. - Total non-interest income decreased by $109,000, or 2.9%, to $3.7 million in the second quarter of 2024, primarily due to a decrease in gains on sales of loans[100]. - Non-interest expense increased by $746,000, or 7.2%, to $11.1 million in the second quarter of 2024, mainly due to higher other non-interest expenses[102]. - The provision for credit losses for the first six months of 2024 was $300,000, compared to $299,000 in the same period of 2023[98]. - The company reported a return on average assets of 0.78% for Q2 2024, down from 0.88% in Q2 2023[83]. Interest Income and Expenses - Interest income for Q2 2024 increased by $2.4 million, or 14.9%, to $18.2 million compared to Q2 2023[84]. - Interest income on loans rose by $2.4 million, or 19.0%, to $15.0 million in Q2 2024, driven by higher yields and average balances[84]. - Interest expense for Q2 2024 increased by $2.2 million to $7.2 million, with interest-bearing deposits rising from 1.57% in Q2 2023 to 2.44% in Q2 2024[87]. - Net interest income for Q2 2024 increased by $141,000, or 1.3%, to $11.0 million compared to Q2 2023[89]. - The net interest margin for Q2 2024 remained stable at 3.21%, the same as in Q2 2023[89]. Assets and Liabilities - Total assets increased, with average loan balances rising from $873.9 million in Q2 2023 to $955.1 million in Q2 2024[84]. - The company reported a total of $1,550,739 in assets as of June 30, 2024, compared to $1,518,373 in the previous year[94]. - Total deposits decreased by $65.8 million, or 5.0%, to $1.3 billion at June 30, 2024[112]. - Non-interest-bearing deposits were $360.6 million, or 28.8% of total deposits, at June 30, 2024[113]. - Total borrowings increased by $62.7 million to $161.7 million at June 30, 2024, primarily due to an increase in FHLB borrowings[115]. Capital and Dividends - The dividend payout ratio for Q2 2024 was 38.18%, up from 32.31% in Q2 2023[83]. - A quarterly cash dividend of $0.21 per share was paid to stockholders during the quarter ended June 30, 2024[123]. - The company met all capital adequacy requirements as of June 30, 2024, and is considered "well capitalized" under regulatory standards[123]. - Approximately $1.3 million was available to be paid as dividends to the company by the bank without prior regulatory approval as of June 30, 2024[124]. Interest Rate and Sensitivity - The interest rate spread decreased to 2.51%, compared to 2.65% in the previous year[92]. - Interest rate sensitivity simulations indicated a potential decrease in net interest income of 15.0% with a 300 basis point rise in interest rates[128]. Credit Quality - The allowance for credit losses on loans was $10.9 million, or 1.11% of gross loans outstanding, as of June 30, 2024[107]. - Outstanding loan commitments, excluding standby letters of credit, amounted to $211.1 million as of June 30, 2024[121]. - The company had $125.3 million borrowed on its line of credit with the FHLB as of June 30, 2024, with additional borrowing capacity of $256.9 million[119].

Financial Data and Key Metrics Changes - Landmark reported net earnings of $3 million in Q2 2024, with earnings per share of $0.55, a return on average assets of 0.78%, and a return on average equity of 9.72% [4][7] - The efficiency ratio for the second quarter was 67.9%, and net interest income grew by 2.1% compared to the previous quarter [4][5] - The net interest margin expanded to 3.21% in Q2 2024, up from 3.12% in Q1 2024 [10] Business Line Data and Key Metrics Changes - Total gross loans increased by $16.5 million, reaching $980.6 million, with a 6.9% annualized growth rate [13][16] - Net interest income totaled $11 million, an increase of $227,000 from the previous quarter, primarily due to increased interest income on loans [8][10] - Non-interest income rose to $3.7 million, an increase of $320,000 from the prior quarter, driven by higher fees and gains on mortgage loan sales [11] Market Data and Key Metrics Changes - The Kansas unemployment rate was reported at 3.1% as of June 30, indicating a healthy economic environment [18] - Home prices in Kansas increased by 6.3% in the first half of the year compared to the same period in 2023, with homes selling quickly [19] Company Strategy and Development Direction - The company is focusing on expanding its presence with high-quality banking products and services, particularly in Kansas City [20] - Landmark aims to maintain a conservative approach to risk management while enhancing operational efficiency [6] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with core performance, highlighting strong loan growth and solid credit quality [20] - The company anticipates increased interest in fixed-rate mortgage products as rates decline [24] Other Important Information - The Board of Directors declared a cash dividend of $0.21 per share, marking the 92nd consecutive quarterly cash dividend since the company's formation [6] - The allowance for credit losses stood at $10.9 million, representing 1.11% of gross loans, indicating strong credit quality [11][17] Q&A Session Summary Question: Insights on the mortgage business and recent rate changes - Management noted a recent uptick in interest for adjustable-rate mortgages and expects more interest in fixed products as rates decline [24] Question: Impact of potential Fed rate cuts on margins - Management indicated that they are well-positioned to benefit from potential rate cuts, as many of their borrowings will re-price favorably [26] Question: Anticipated large expenditures in the near future - Management confirmed no unusual or non-core expenditures are expected, aside from the sale of a former branch building [27]

Exhibit 99.1 PRESS RELEASE FOR IMMEDIATE RELEASE Contact: August 5, 2024 Mark A. Herpich Chief Financial Officer (785) 565-2000 Landmark Bancorp, Inc. Announces Second Quarter Earnings Per Share of $0.55 Declares Cash Dividend of $0.21 per Share (Manhattan, KS, August 5, 2024) – Landmark Bancorp, Inc. ("Landmark"; Nasdaq: LARK) reported diluted earnings per share of $0.55 for the three months ended June 30, 2024, compared to $0.51 per share in the first quarter of 2024 and $0.61 per share in the same quarte ...

Manhattan, KS, July 16, 2024 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (Nasdaq: LARK) announced that it will release earnings for the second quarter of 2024 after the market closes on Monday, August 5, 2024. The Company will host a conference call to discuss these results on Tuesday, August 6, 2024 at 10:00 am (CT). Investors may listen to the Company's earnings call via telephone by dialing (833) 470-1428 and using access code 974885. Investors are encouraged to call the dial-in number at least 5 minutes ...

Commission File Number 0-33203 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ (Address of principal executive offices) (Zip code) LANDMARK BANCORP, INC. (Exact name of registrant as specified in ...

Landmark Bancorp, Inc. (NASDAQ:LARK) Q1 2024 Results Conference Call May 2, 2024 11:00 AM ET Company Participants Abby Wendel - CEO Mark Herpich - CFO Raymond McLanahan - Chief Credit Officer Conference Call Participants Ross Haberman - Rlh Investments Operator Ladies and gentlemen, thank you for standing by. Welcome to the Landmark Bancorp Inc. 2024 First Quarter Earnings Call [Operator Instructions]. I would now like to hand the conference call over to Abby Wendel, CEO. Please go ahead. Abby Wendel Thank ...

FOR IMMEDIATE RELEASE Contact: May 1, 2024 Mark A. Herpich Chief Financial Officer (785) 565-2000 Exhibit 99.1 PRESS RELEASE Landmark Bancorp, Inc. Announces First Quarter Earnings Per Share of $0.51 Declares Cash Dividend of $0.21 per Share (Manhattan, KS, May 1, 2024) – Landmark Bancorp, Inc. ("Landmark"; Nasdaq: LARK) reported diluted earnings per share of $0.51 for the three months ended March 31, 2024, compared to $0.48 per share in the fourth quarter of 2023 and $0.61 per share in the same quarter las ...

Manhattan, KS, May 01, 2024 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (("Landmark", NASDAQ:LARK) reported diluted earnings per share of $0.51 for the three months ended March 31, 2024, compared to $0.48 per share in the fourth quarter of 2023 and $0.61 per share in the same quarter last year. Net earnings for the first quarter of 2024 amounted to $2.8 million, compared to $2.6 million in the prior quarter and $3.4 million for the first quarter of 2023. For the three months ended March 31, 2024, the return ...