Landmark Bancorp, Inc. Announces First Quarter Earnings Per Share of $0.51. Declares Cash Dividend of $0.21 per Share
Landmark Bancorp, Inc. reported diluted earnings per share of $0.51 for the first quarter of 2024, up from $0.48 in the previous quarter but down from $0.61 in the same period last year. Net earnings were $2.8 million, with a return on average assets of 0.72% and a return on average equity of 8.88%. Highlights include solid loan growth, controlled expenses, and good credit quality. Non-interest income increased, while non-interest expense saw a slight decline. The company declared a cash dividend of $0.21 per share, up 5% from the previous period.
Solid loan growth and controlled expenses in the first quarter of 2024.
Good credit quality with low net loan charge-offs and non-accrual loans.
Increased net interest margin and stable interest rates benefited the company.
Non-interest income increased, with gains offsetting previous losses.
Cash dividend increased by 5% to $0.21 per share, reflecting confidence in financial performance.
Net interest income decreased slightly due to higher interest costs on deposits.
Non-interest expense increased marginally, impacting overall expenses.
Income tax expense increased compared to the previous quarter.
Unrealized net losses on investment securities rose, influenced by higher interest rates.
The company reported a provision for credit losses of $300,000 related to growth in loans.
Insights
Manhattan, KS, May 01, 2024 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of
In announcing these results, Abby Wendel, President and Chief Executive Officer of Landmark, said, “We are pleased with our first quarter results, which included continued solid loan growth, controlled expenses, and good credit quality. Compared to the fourth quarter 2023, total gross loans increased by
Ms. Wendel continued, “The credit quality of our loan portfolio remains excellent. Landmark recorded net loan charge-offs of
Landmark’s Board of Directors declared a cash dividend of
Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, May 2, 2024. Investors may participate via telephone by dialing (833) 470-1428 and using access code 688391. A replay of the call will be available through June 1, 2024, by dialing (866) 813-9403 and using access code 260752.
SUMMARY OF FIRST QUARTER RESULTS
Net Interest Income
Net interest income in the first quarter of 2024 amounted to
Non-Interest Income
Non-interest income totaled
Non-Interest Expense
During the first quarter of 2024, non-interest expense totaled
Income Tax Expense
Landmark recorded income tax expense of
Liquidity Highlights
In addition to local retail, commercial and public fund deposits, Landmark 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, 2024, Landmark had collateral pledged to the Federal Home Loan Bank (“FHLB”) that would allow for an additional
As of March 31, 2024, Landmark had unpledged available-for-sale investment securities with a fair value of
Balance Sheet Highlights
As of March 31, 2024, gross loans totaled
Period end deposit balances decreased
Estimated uninsured deposits, excluding collateralized public fund deposits, totaled
Stockholders’ equity decreased slightly to
The allowance for credit losses totaled
Non-performing loans totaled
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.
Contact: |
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 timing of rate changes, if any, by the Federal Reserve; (x) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
(Dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,468 | $ | 27,101 | $ | 23,821 | $ | 20,038 | $ | 23,764 | ||||||||||
Interest-bearing deposits at other banks | 4,920 | 4,918 | 5,904 | 8,336 | 8,586 | |||||||||||||||
Investment securities available-for-sale, at fair value: | ||||||||||||||||||||
U.S. treasury securities | 93,683 | 95,667 | 118,341 | 121,480 | 121,759 | |||||||||||||||
U.S. federal agency obligations | - | - | - | - | 1,993 | |||||||||||||||
Municipal obligations, tax exempt | 118,445 | 120,623 | 115,706 | 124,451 | 128,281 | |||||||||||||||
Municipal obligations, taxable | 75,371 | 79,083 | 73,993 | 77,713 | 73,468 | |||||||||||||||
Agency mortgage-backed securities | 149,777 | 157,396 | 148,817 | 160,734 | 164,669 | |||||||||||||||
Total investment securities available-for-sale | 437,276 | 452,769 | 456,857 | 484,378 | 490,170 | |||||||||||||||
Investment securities held-to-maturity | 3,584 | 3,555 | 3,525 | 3,496 | 3,467 | |||||||||||||||
Bank stocks, at cost | 7,850 | 8,123 | 8,009 | 9,445 | 6,876 | |||||||||||||||
Loans: | ||||||||||||||||||||
One-to-four family residential real estate | 312,833 | 302,544 | 289,571 | 259,655 | 246,079 | |||||||||||||||
Construction and land | 24,823 | 21,090 | 21,657 | 22,016 | 23,137 | |||||||||||||||
Commercial real estate | 323,397 | 320,962 | 323,427 | 314,889 | 316,900 | |||||||||||||||
Commercial | 181,945 | 180,942 | 185,831 | 181,424 | 172,331 | |||||||||||||||
Paycheck Protection Program (PPP) | - | - | - | - | 21 | |||||||||||||||
Agriculture | 86,808 | 89,680 | 84,560 | 84,345 | 80,499 | |||||||||||||||
Municipal | 5,690 | 4,507 | 3,200 | 2,711 | 2,004 | |||||||||||||||
Consumer | 28,544 | 28,931 | 29,180 | 28,219 | 28,835 | |||||||||||||||
Total gross loans | 964,040 | 948,656 | 937,426 | 893,259 | 869,806 | |||||||||||||||
Net deferred loan (fees) costs and loans in process | (578 | ) | (429 | ) | (396 | ) | (261 | ) | 2 | |||||||||||
Allowance for credit losses | (10,851 | ) | (10,608 | ) | (10,970 | ) | (10,449 | ) | (10,267 | ) | ||||||||||
Loans, net | 952,611 | 937,619 | 926,060 | 882,549 | 859,541 | |||||||||||||||
Loans held for sale, at fair value | 2,697 | 853 | 1,857 | 3,900 | 1,839 | |||||||||||||||
Bank owned life insurance | 38,578 | 38,333 | 38,090 | 37,764 | 37,541 | |||||||||||||||
Premises and equipment, net | 20,696 | 19,709 | 23,911 | 24,027 | 24,241 | |||||||||||||||
Goodwill | 32,377 | 32,377 | 32,377 | 32,199 | 32,199 | |||||||||||||||
Other intangible assets, net | 3,071 | 3,241 | 3,414 | 3,612 | 3,809 | |||||||||||||||
Mortgage servicing rights | 2,977 | 3,158 | 3,368 | 3,514 | 3,652 | |||||||||||||||
Real estate owned, net | 428 | 928 | 934 | 934 | 934 | |||||||||||||||
Other assets | 29,684 | 28,988 | 29,459 | 25,148 | 24,198 | |||||||||||||||
Total assets | $ | 1,553,217 | $ | 1,561,672 | $ | 1,557,586 | $ | 1,539,340 | $ | 1,520,817 | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing demand | 364,386 | 367,103 | 395,046 | 382,410 | 421,971 | |||||||||||||||
Money market and checking | 583,315 | 613,613 | 586,651 | 606,474 | 588,366 | |||||||||||||||
Savings | 154,000 | 152,381 | 157,112 | 160,426 | 169,504 | |||||||||||||||
Certificates of deposit | 191,823 | 183,154 | 169,225 | 131,661 | 114,189 | |||||||||||||||
Total deposits | 1,293,524 | 1,316,251 | 1,308,034 | 1,280,971 | 1,294,030 | |||||||||||||||
FHLB and other borrowings | 74,716 | 64,662 | 74,567 | 76,185 | 37,804 | |||||||||||||||
Subordinated debentures | 21,651 | 21,651 | 21,651 | 21,651 | 21,651 | |||||||||||||||
Repurchase agreements | 15,895 | 12,714 | 20,592 | 22,293 | 28,750 | |||||||||||||||
Accrued interest and other liabilities | 20,760 | 19,480 | 23,185 | 20,887 | 20,864 | |||||||||||||||
Total liabilities | 1,426,546 | 1,434,758 | 1,448,029 | 1,421,987 | 1,403,099 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 55 | 55 | 52 | 52 | 52 | |||||||||||||||
Additional paid-in capital | 89,364 | 89,208 | 84,568 | 84,475 | 84,413 | |||||||||||||||
Retained earnings | 55,912 | 54,282 | 57,280 | 55,498 | 53,231 | |||||||||||||||
Treasury stock, at cost | (249 | ) | (75 | ) | - | - | - | |||||||||||||
Accumulated other comprehensive (loss) income | (18,411 | ) | (16,556 | ) | (32,343 | ) | (22,672 | ) | (19,978 | ) | ||||||||||
Total stockholders’ equity | 126,671 | 126,914 | 109,557 | 117,353 | 117,718 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,553,217 | $ | 1,561,672 | $ | 1,557,586 | $ | 1,539,340 | $ | 1,520,817 |
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)
(Dollars in thousands, except per share amounts) | Three months ended, | |||||||||||
March 31, | December 31, | March 31, | ||||||||||
2024 | 2023 | 2023 | ||||||||||
Interest income: | ||||||||||||
Loans | $ | 14,490 | $ | 14,223 | $ | 11,376 | ||||||
Investment securities: | ||||||||||||
Taxable | 2,428 | 2,453 | 2,317 | |||||||||
Tax-exempt | 764 | 761 | 786 | |||||||||
Interest-bearing deposits at banks | 63 | 49 | 98 | |||||||||
Total interest income | 17,745 | 17,486 | 14,577 | |||||||||
Interest expense: | ||||||||||||
Deposits | 5,457 | 4,879 | 2,539 | |||||||||
FHLB and other borrowings | 1,022 | 1,203 | 567 | |||||||||
Subordinated debentures | 412 | 422 | 364 | |||||||||
Repurchase agreements | 107 | 96 | 160 | |||||||||
Total interest expense | 6,998 | 6,600 | 3,630 | |||||||||
Net interest income | 10,747 | 10,886 | 10,947 | |||||||||
Provision for credit losses | 300 | 50 | 49 | |||||||||
Net interest income after provision for credit losses | 10,447 | 10,836 | 10,898 | |||||||||
Non-interest income: | ||||||||||||
Fees and service charges | 2,461 | 2,763 | 2,358 | |||||||||
Gains on sales of loans, net | 512 | 255 | 693 | |||||||||
Bank owned life insurance | 245 | 242 | 218 | |||||||||
Losses on sales of investment securities, net | - | (1,246 | ) | - | ||||||||
Other | 182 | 240 | 226 | |||||||||
Total non-interest income | 3,400 | 2,254 | 3,495 | |||||||||
Non-interest expense: | ||||||||||||
Compensation and benefits | 5,532 | 5,756 | 5,542 | |||||||||
Occupancy and equipment | 1,390 | 1,429 | 1,369 | |||||||||
Data processing | 481 | 462 | 589 | |||||||||
Amortization of mortgage servicing rights and other intangibles | 412 | 437 | 461 | |||||||||
Professional fees | 647 | 730 | 491 | |||||||||
Other | 2,089 | 1,748 | 1,891 | |||||||||
Total non-interest expense | 10,551 | 10,562 | 10,343 | |||||||||
Earnings before income taxes | 3,296 | 2,528 | 4,050 | |||||||||
Income tax expense | 518 | (111 | ) | 693 | ||||||||
Net earnings | $ | 2,778 | $ | 2,639 | $ | 3,357 | ||||||
Net earnings per share (1) | ||||||||||||
Basic | $ | 0.51 | $ | 0.48 | $ | 0.61 | ||||||
Diluted | 0.51 | 0.48 | 0.61 | |||||||||
Dividends per share (1) | 0.21 | 0.20 | 0.20 | |||||||||
Shares outstanding at end of period (1) | 5,473,867 | 5,477,595 | 5,476,354 | |||||||||
Weighted average common shares outstanding - basic (1) | 5,469,954 | 5,481,119 | 5,473,781 | |||||||||
Weighted average common shares outstanding - diluted (1) | 5,474,852 | 5,481,119 | 5,481,722 | |||||||||
Tax equivalent net interest income | $ | 10,925 | $ | 11,017 | $ | 11,144 |
(1) Share and per share values at or for the period ended March 31, 2023 have been adjusted to give effect to the
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select 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, | ||||||||||
2024 | 2023 | 2023 | ||||||||||
Performance ratios: | ||||||||||||
Return on average assets (1) | 0.72 | % | 0.67 | % | 0.90 | % | ||||||
Return on average equity (1) | 8.88 | % | 9.39 | % | 12.04 | % | ||||||
Net interest margin (1)(2) | 3.12 | % | 3.11 | % | 3.31 | % | ||||||
Effective tax rate | 15.7 | % | -4.4 | % | 17.1 | % | ||||||
Efficiency ratio (3) | 73.0 | % | 71.9 | % | 70.1 | % | ||||||
Non-interest income to total income (3) | 24.1 | % | 24.3 | % | 24.2 | % | ||||||
Average balances: | ||||||||||||
Investment securities | $ | 456,933 | $ | 463,763 | $ | 499,538 | ||||||
Loans | 945,737 | 934,333 | 850,331 | |||||||||
Assets | 1,555,662 | 1,555,742 | 1,511,077 | |||||||||
Interest-bearing deposits | 935,417 | 910,610 | 872,900 | |||||||||
FHLB and other borrowings | 72,618 | 84,408 | 45,217 | |||||||||
Subordinated debentures | 21,651 | 21,651 | 21,651 | |||||||||
Repurchase agreements | 14,371 | 13,785 | 27,548 | |||||||||
Stockholders’ equity | $ | 125,846 | $ | 111,560 | $ | 113,115 | ||||||
Average tax equivalent yield/cost (1): | ||||||||||||
Investment securities | 2.96 | % | 2.86 | % | 2.68 | % | ||||||
Loans | 6.16 | % | 6.04 | % | 5.43 | % | ||||||
Total interest-bearing assets | 5.11 | % | 4.97 | % | 4.39 | % | ||||||
Interest-bearing deposits | 2.35 | % | 2.13 | % | 1.18 | % | ||||||
FHLB and other borrowings | 5.66 | % | 5.65 | % | 5.09 | % | ||||||
Subordinated debentures | 7.65 | % | 7.73 | % | 6.82 | % | ||||||
Repurchase agreements | 2.99 | % | 2.79 | % | 2.36 | % | ||||||
Total interest-bearing liabilities | 2.70 | % | 2.54 | % | 1.52 | % | ||||||
Capital ratios: | ||||||||||||
Equity to total assets | 8.16 | % | 8.13 | % | 7.74 | % | ||||||
Tangible equity to tangible assets (3) | 6.01 | % | 5.98 | % | 5.50 | % | ||||||
Book value per share | $ | 23.14 | $ | 23.17 | $ | 21.50 | ||||||
Tangible book value per share (3) | $ | 16.67 | $ | 16.67 | $ | 14.92 | ||||||
Rollforward of allowance for credit losses (loans): | ||||||||||||
Beginning balance | $ | 10,608 | $ | 10,970 | $ | 8,791 | ||||||
Adoption of CECL | - | - | 1,523 | |||||||||
Charge-offs | (141 | ) | (442 | ) | (108 | ) | ||||||
Recoveries | 134 | 80 | 61 | |||||||||
Provision for credit losses for loans | 250 | - | - | |||||||||
Ending balance | $ | 10,851 | $ | 10,608 | $ | 10,267 | ||||||
Allowance for unfunded loan commitments | $ | 300 | $ | 250 | $ | 200 | ||||||
Non-performing assets: | ||||||||||||
Non-accrual loans | $ | 3,621 | $ | 2,391 | $ | 3,311 | ||||||
Accruing loans over 90 days past due | - | - | - | |||||||||
Real estate owned | 428 | 928 | 934 | |||||||||
Total non-performing assets | $ | 4,049 | $ | 3,319 | $ | 4,245 | ||||||
Loans 30-89 days delinquent | $ | 4,064 | $ | 1,582 | $ | 1,490 | ||||||
Other ratios: | ||||||||||||
Loans to deposits | 73.64 | % | 71.23 | % | 66.42 | % | ||||||
Loans 30-89 days delinquent and still accruing to gross loans outstanding | 0.42 | % | 0.17 | % | 0.17 | % | ||||||
Total non-performing loans to gross loans outstanding | 0.38 | % | 0.25 | % | 0.38 | % | ||||||
Total non-performing assets to total assets | 0.26 | % | 0.21 | % | 0.28 | % | ||||||
Allowance for credit losses to gross loans outstanding | 1.13 | % | 1.12 | % | 1.18 | % | ||||||
Allowance for credit losses to total non-performing loans | 299.67 | % | 443.66 | % | 310.09 | % | ||||||
Net loan charge-offs to average loans (1) | 0.00 | % | 0.15 | % | 0.02 | % |
(1) Information is annualized.
(2) Net interest margin is presented on a fully tax equivalent basis, using a
(3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)
As of or for the | ||||||||||||
(Dollars in thousands, except per share amounts) | three months ended, | |||||||||||
March 31, | December 31, | March 31, | ||||||||||
2024 | 2023 | 2023 | ||||||||||
Non-GAAP financial ratio reconciliation: | ||||||||||||
Total non-interest expense | $ | 10,551 | $ | 10,562 | $ | 10,343 | ||||||
Less: foreclosure and real estate owned expense | (50 | ) | (40 | ) | (17 | ) | ||||||
Less: amortization of other intangibles | (170 | ) | (174 | ) | (197 | ) | ||||||
Less: acquisition costs | - | - | - | |||||||||
Adjusted non-interest expense (A) | 10,331 | 10,348 | 10,129 | |||||||||
Net interest income (B) | 10,747 | 10,886 | 10,947 | |||||||||
Non-interest income | 3,400 | 2,254 | 3,495 | |||||||||
Less: losses (gains) on sales of investment securities, net | - | 1,246 | - | |||||||||
Less: gains on sales of premises and equipment and foreclosed assets | 9 | - | (1 | ) | ||||||||
Adjusted non-interest income (C) | $ | 3,409 | $ | 3,500 | $ | 3,494 | ||||||
Efficiency ratio (A/(B+C)) | 73.0 | % | 71.9 | % | 70.1 | % | ||||||
Non-interest income to total income (C/(B+C)) | 24.1 | % | 24.3 | % | 24.2 | % | ||||||
Total stockholders’ equity | $ | 126,671 | $ | 126,914 | $ | 117,718 | ||||||
Less: goodwill and other intangible assets | (35,448 | ) | (35,618 | ) | (36,008 | ) | ||||||
Tangible equity (D) | $ | 91,223 | $ | 91,296 | $ | 81,710 | ||||||
Total assets | $ | 1,553,217 | $ | 1,561,672 | $ | 1,520,817 | ||||||
Less: goodwill and other intangible assets | (35,448 | ) | (35,618 | ) | (36,008 | ) | ||||||
Tangible assets (E) | $ | 1,517,769 | $ | 1,526,054 | $ | 1,484,809 | ||||||
Tangible equity to tangible assets (D/E) | 6.01 | % | 5.98 | % | 5.50 | % | ||||||
Shares outstanding at end of period (F) | 5,473,867 | 5,477,595 | 5,476,354 | |||||||||
Tangible book value per share (D/F) | $ | 16.67 | $ | 16.67 | $ | 14.92 |
FAQ
What were Landmark Bancorp's diluted earnings per share for the first quarter of 2024?
What was the net earnings for Landmark Bancorp in the first quarter of 2024?
What was Landmark Bancorp's return on average assets in the first quarter of 2024?
When is Landmark Bancorp's cash dividend of $0.21 per share payable?