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Landmark Bancorp, Inc. Announces Third Quarter Earnings Per Share of $0.50 Declares Cash Dividend of $0.21 per Share and 5% Stock Dividend

Landmark Bancorp, Inc.
Landmark Bancorp, Inc.

Manhattan, KS, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.50 for the three months ended September 30, 2022, compared to $0.61 per share in the second quarter of 2022 and $0.90 per share in the same quarter last year. Net earnings for the third quarter of 2022 amounted to $2.5 million, compared to $3.0 million in the prior quarter and $4.5 million for the third quarter of 2021. For the three months ended September 30, 2022, the return on average assets was 0.76%, the return on average equity was 8.33%, and the efficiency ratio was 69.6%. The previously announced acquisition of Freedom Bancshares, Inc. was completed prior to the opening of business on October 1, 2022 and their financial information is not included in Landmark’s third quarter results.

For the first nine months of 2022, diluted earnings per share totaled $1.73 compared to $2.97 during the same period of 2021. Net earnings for the first nine months of 2022 amounted to $8.7 million, compared to $14.9 million in the first nine months of 2021. For the nine months ended September 30, 2022, the return on average assets was 0.89% and the return on average equity was 9.33%.

In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “This quarter’s loan growth remained robust, and we experienced solid growth in net interest income over the prior quarter. Compared to the second quarter 2022, total gross loans increased by $41.4 million, or 24.5% on an annualized basis, as a result of greater demand for residential and commercial real estate loans and commercial and agricultural loans. Net interest income also grew by 24.7% on an annualized basis compared to the prior quarter due to higher loan and investment balances and higher rates, which were partially offset by higher deposit rates and borrowing costs. Our net interest margin increased to 3.21%. Non-interest income declined $1.9 million compared to the same period last year mostly the result of lower gains on sales of residential mortgage loans while fees and service charges increased 10.7%. We also recorded a $353,000 loss on sale of lower yielding investment securities that we had strategically sold this quarter. Non-interest expense totaled $9.5 million in the third quarter 2022 and was mostly flat with the third quarter last year and included $134,000 in costs associated with the acquisition of Freedom Bancshares, Inc. Total deposits declined slightly this quarter but have increased by $50.5 million, or 4.7% as compared to September 30, 2021.”

Mr. Scheopner continued, “Credit quality remains very strong and non-accrual loans and delinquencies continue to decline. Landmark recorded net loan recoveries of $43,000 in the third quarter of 2022 compared to net loan charge-offs of $42,000 in the prior quarter and $397,000 in the third quarter of 2021. Non-accrual loans totaled $4.8 million or 0.68% of gross loans at September 30, 2022 and have declined $5.0 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 $8.9 million at September 30, 2022, or 1.25% of period end loans and we recorded a provision for loan losses of $500,000 this quarter primarily due to the increased loan balances. Our equity to assets ratio totaled 7.78% while loans to deposits totaled 62.9%.”

Total assets at September 30, 2022 were $1.4 billion, total gross loans were $711.3 million and total deposits were $1.1 billion. On October 1, 2022, Landmark completed the acquisition Freedom Bancshares, Inc., a one-bank holding company with gross loans of $118.0 million and deposits of $150.4 million. Freedom Bank is located in Overland Park, Kansas and will expand Landmark’s presence in the Kansas City market.

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid November 30, 2022, to common stockholders of record as of the close of business on November 16, 2022. The Board of Directors also declared a 5% stock dividend payable on December 16, 2022, to common stockholders of record on December 2, 2022. This is the 22nd consecutive year that the Board has declared a 5% stock dividend. During the quarter the Company purchased 20,706 shares of treasury stock.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, November 3, 2022. Investors may participate via telephone by dialing (844) 200-6205 and using access code 523774. A replay of the call will be available through December 3, 2022, by dialing (866) 813-9403 and using access code 414179.

SUMMARY OF THIRD QUARTER RESULTS

Net Interest Income

Net interest income amounted to $9.5 million for the three months ended September 30, 2022, compared to $9.6 million in the same period last year and $8.9 million in the second quarter of 2022. The decrease of $162,000, or 1.7%, from the third quarter of 2021 was primarily the result of a decrease in interest on loans of $436,000 or 5.2% due mainly to lower interest and fees earned on PPP loans which declined by $1.6 million from the third quarter 2021 and carried higher average rates. Net interest income, however, increased $553,000 from the second quarter 2022 due mainly to loan growth and higher yields on loans and investment securities. Average loan balances totaled $687.7 million in the third quarter of 2022 compared to $668.0 million in the third quarter of 2021 and $653.0 million in the second quarter of 2022. The average tax-equivalent yield on the loan portfolio was 4.63% in the third quarter of 2022 compared to 5.03% in the same quarter last year and 4.40% in the prior quarter. Interest costs on interest-bearing deposits totaled 0.39% in the third quarter of 2022, 0.13% in the third quarter of 2021 and 0.18% in the prior quarter. On a tax-equivalent basis, the net interest margin totaled 3.21% in the third quarter of 2022, compared to 3.05% in the prior quarter and 3.36% in the third quarter of 2021.

Non-Interest Income

Non-interest income totaled $3.5 million for the third quarter of 2022, a decrease of $1.9 million, or 35.4%, compared to the same period last year and $267,000, or 7.0%, from the previous quarter. The decrease in non-interest income during the third quarter of 2022 compared to the same period last year was primarily due to a decrease of $1.6 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 which are normally sold. Higher mortgage rates however resulted in an increase in originations of adjustable-rate loans this quarter which are kept in the Company’s loan portfolio. Fees and service charges increased $243,000, or 10.7%, over the same period last year and increased $131,000 compared to the prior quarter mainly due to increased deposit-related income. A loss of $353,000 was recorded in the third quarter of 2022 on the sale of certain low yielding investment securities in our portfolio.

Non-Interest Expense

During the third quarter of 2022, non-interest expense totaled $9.5 million, a slight increase over the same period last year and $436,000, or 4.8% higher than in the prior quarter. Compared to the same quarter last year, higher costs for occupancy and equipment and acquisition costs were offset by lower compensation, data processing and intangible amortization expense. The increase in occupancy and equipment was related to building maintenance costs as well as increased utilities and other building expense. Compared to the prior quarter, non-interest expense increased primarily due to increased costs for occupancy and equipment and higher other non-interest expense, primarily increased costs for software and captive insurance losses.

Income Tax Expense

Landmark recorded income tax expense of $522,000 in the third quarter of 2022 compared to $1.1 million in the third quarter of 2021 and $639,000 in the second quarter of 2022. The effective tax rate decreased to 17.3% in the third quarter of 2022 compared to 19.8% in the third quarter of 2021 and 17.4% in the second quarter of 2022, primarily due to lower pretax earnings.

Balance Sheet Highlights

As of September 30, 2022, gross loans totaled $711.3 million, an increase of $41.4 million, or 24.5% annualized, since June 30, 2022. The growth in loans was primarily due to increases of $18.8 million in commercial real estate, $12.9 million in one-to-four family residential real estate, $7.9 million in agriculture and $6.7 million in commercial loans. Investment securities decreased $2.5 million, or 2.1% annualized, during the third quarter of 2022 primarily due to an increase in our unrealized losses as higher interest rates impacted the fair value of our portfolio. Gross unrealized net losses totaled $41.0 million at September 30, 2022 compared to $24.0 million at June 30, 2022. Deposits decreased $14.3 million to $1.1 billion at September 30, 2022 mainly due to lower balances of investments savings, interest checking and certificates of deposits. Other borrowings increased by $10.1 million primarily due to $10.0 million of debt issued in conjunction with the Freedom Bancshares, Inc. acquisition. At September 30, 2022, the loan to deposits ratio was 62.9% compared to 58.5% in the prior quarter and 61.6% in the same period last year.

Stockholders’ equity decreased to $105.5 million (book value of $21.21 per share) as of September 30, 2022, from $117.3 million (book value of $23.57 per share) as of June 30, 2022, due mainly to an increase in other comprehensive losses and the purchase of the Company’s common stock totaling $502,000. The increase in other comprehensive losses this quarter resulted from an increase in unrealized losses on the Company’s investment securities portfolio due to the increased interest rate environment this quarter. As a result of these items, the ratio of equity to total assets decreased to 7.78% on September 30, 2022, from 9.08% at June 30, 2022.

The allowance for loan losses totaled $8.9 million, or 1.25% of total gross loans (excluding PPP loans) on September 30, 2022, compared to $8.3 million, or 1.24% of total gross loans (excluding PPP loans) on June 30, 2022. No allowance for loan losses has been allocated to PPP loans because they are guaranteed by the SBA. Net loan recoveries totaled $43,000 in the third quarter of 2022, compared to net loan charge-offs of $397,000 during the same quarter last year and $42,000 during the second quarter of 2022. The ratio of annualized net loan charge-offs to total average loans was (0.02%) in the third quarter of 2022, 0.24% in the third quarter of last year and 0.03% in the prior quarter. 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. No provision for loan losses was made in either the same quarter last year or in the prior quarter.

During the third quarter of 2022, non-performing loans totaled $4.8 million, or 0.68% of gross loans, while loans 30-89 days delinquent totaled $657,000, or 0.09% of gross loans, as of September 30, 2022. Real estate owned totaled $1.3 million at September 30, 2022.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 30 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and operations, as well as changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (ii) the strength of the local, national and international economies; (iii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters; (iv) changes in interest rates and prepayment rates of our assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) timely development and acceptance of new products and services; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) our risk management framework; (ix) interruptions in information technology and telecommunications systems and third-party services; (x) changes and uncertainty in benchmark interest rates, including the elimination of LIBOR and the development of a substitute; (xi) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xii) the loss of key executives or employees; (xiii) changes in consumer spending; (xiv) integration of acquired businesses; (xv) unexpected outcomes of existing or new litigation; (xvi) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvii) the economic impact of armed conflict or terrorist acts involving the United States; (xviii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xix) declines in the value of our investment portfolio; (xx) the ability to raise additional capital; (xxi) cyber-attacks; (xxii) declines in real estate values; (xxiii) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxiv) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

Contacts:

Michael E. Scheopner

President and Chief Executive Officer

Mark A. Herpich

Chief Financial Officer

(785) 565-2000

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

(Dollars in thousands)

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

49,234

 

 

$

30,413

 

 

$

106,319

 

 

$

189,213

 

 

$

117,314

 

Interest-bearing deposits at other banks

 

 

8,844

 

 

 

8,360

 

 

 

6,381

 

 

 

7,378

 

 

 

7,629

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

127,445

 

 

 

135,459

 

 

 

119,882

 

 

 

42,675

 

 

 

40,314

 

U.S. federal agency obligations

 

 

4,979

 

 

 

14,931

 

 

 

17,013

 

 

 

17,195

 

 

 

17,297

 

Municipal obligations, tax exempt

 

 

128,392

 

 

 

134,994

 

 

 

130,915

 

 

 

137,984

 

 

 

140,788

 

Municipal obligations, taxable

 

 

61,959

 

 

 

49,356

 

 

 

45,586

 

 

 

40,046

 

 

 

38,988

 

Agency mortgage-backed securities

 

 

161,331

 

 

 

151,893

 

 

 

153,587

 

 

 

142,817

 

 

 

133,502

 

Investment securities available-for-sale, at fair value

 

 

484,106

 

 

 

486,633

 

 

 

466,983

 

 

 

380,717

 

 

 

370,889

 

Bank stocks, at cost

 

 

6,641

 

 

 

2,881

 

 

 

2,856

 

 

 

2,905

 

 

 

2,985

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One-to-four family residential real estate

 

 

205,466

 

 

 

192,517

 

 

 

169,514

 

 

 

166,081

 

 

 

161,120

 

Construction and land

 

 

18,119

 

 

 

23,092

 

 

 

25,408

 

 

 

27,644

 

 

 

26,658

 

Commercial real estate

 

 

228,669

 

 

 

209,879

 

 

 

196,736

 

 

 

198,472

 

 

 

193,455

 

Commercial

 

 

144,582

 

 

 

137,929

 

 

 

127,226

 

 

 

132,154

 

 

 

135,790

 

Paycheck Protection Program (PPP)

 

 

410

 

 

 

652

 

 

 

5,218

 

 

 

17,179

 

 

 

28,671

 

Agriculture

 

 

86,114

 

 

 

78,240

 

 

 

82,484

 

 

 

94,267

 

 

 

91,305

 

Municipal

 

 

2,036

 

 

 

2,076

 

 

 

2,212

 

 

 

2,050

 

 

 

2,115

 

Consumer

 

 

25,911

 

 

 

25,531

 

 

 

24,751

 

 

 

24,541

 

 

 

25,624

 

Total gross loans

 

 

711,307

 

 

 

669,916

 

 

 

633,549

 

 

 

662,388

 

 

 

664,738

 

Net deferred loan (fees) costs and loans in process

 

 

(311

)

 

 

229

 

 

 

(43

)

 

 

(380

)

 

 

936

 

Allowance for loan losses

 

 

(8,858

)

 

 

(8,315

)

 

 

(8,357

)

 

 

(8,775

)

 

 

(8,766

)

Loans, net

 

 

702,138

 

 

 

661,830

 

 

 

625,149

 

 

 

653,233

 

 

 

656,908

 

Loans held for sale

 

 

2,741

 

 

 

6,264

 

 

 

5,424

 

 

 

4,795

 

 

 

8,929

 

Bank owned life insurance

 

 

32,672

 

 

 

32,483

 

 

 

32,293

 

 

 

32,106

 

 

 

31,914

 

Premises and equipment, net

 

 

20,628

 

 

 

20,679

 

 

 

20,919

 

 

 

20,803

 

 

 

20,361

 

Goodwill

 

 

17,532

 

 

 

17,532

 

 

 

17,532

 

 

 

17,532

 

 

 

17,532

 

Other intangible assets, net

 

 

36

 

 

 

52

 

 

 

67

 

 

 

84

 

 

 

104

 

Mortgage servicing rights

 

 

3,980

 

 

 

4,025

 

 

 

4,128

 

 

 

4,193

 

 

 

4,201

 

Real estate owned, net

 

 

1,288

 

 

 

1,288

 

 

 

1,288

 

 

 

2,551

 

 

 

2,578

 

Other assets

 

 

25,456

 

 

 

19,911

 

 

 

17,095

 

 

 

13,458

 

 

 

13,190

 

Total assets

 

$

1,355,296

 

 

$

1,292,351

 

 

$

1,306,434

 

 

$

1,328,968

 

 

$

1,254,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand

 

 

347,942

 

 

 

343,107

 

 

 

350,342

 

 

 

350,005

 

 

 

317,827

 

Money market and checking

 

 

504,973

 

 

 

520,056

 

 

 

517,936

 

 

 

536,868

 

 

 

488,213

 

Savings

 

 

170,988

 

 

 

170,419

 

 

 

167,823

 

 

 

155,501

 

 

 

151,380

 

Certificates of deposit

 

 

93,234

 

 

 

97,885

 

 

 

103,464

 

 

 

106,107

 

 

 

109,267

 

Total deposits

 

 

1,117,137

 

 

 

1,131,467

 

 

 

1,139,565

 

 

 

1,148,481

 

 

 

1,066,687

 

Federal Home Loan Bank borrowings

 

 

74,900

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subordinated debentures

 

 

21,651

 

 

 

21,651

 

 

 

21,651

 

 

 

21,651

 

 

 

21,651

 

Other borrowings

 

 

16,349

 

 

 

6,223

 

 

 

7,004

 

 

 

7,403

 

 

 

6,219

 

Accrued interest and other liabilities

 

 

19,775

 

 

 

15,708

 

 

 

14,701

 

 

 

15,790

 

 

 

24,571

 

Total liabilities

 

 

1,249,812

 

 

 

1,175,049

 

 

 

1,182,921

 

 

 

1,193,325

 

 

 

1,119,128

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

50

 

 

 

50

 

 

 

50

 

 

 

50

 

 

 

48

 

Additional paid-in capital

 

 

79,329

 

 

 

79,284

 

 

 

79,206

 

 

 

79,120

 

 

 

72,489

 

Retained earnings

 

 

58,114

 

 

 

56,662

 

 

 

54,677

 

 

 

52,593

 

 

 

56,957

 

Treasury stock, at cost

 

 

(1,040

)

 

 

(538

)

 

 

-

 

 

 

-

 

 

 

-

 

Accumulated other comprehensive (loss) income

 

 

(30,969

)

 

 

(18,156

)

 

 

(10,420

)

 

 

3,880

 

 

 

5,912

 

Total stockholders' equity

 

 

105,484

 

 

 

117,302

 

 

 

123,513

 

 

 

135,643

 

 

 

135,406

 

Total liabilities and stockholders' equity

 

$

1,355,296

 

 

$

1,292,351

 

 

$

1,306,434

 

 

$

1,328,968

 

 

$

1,254,534

 


LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)
  

(Dollars in thousands, except per share amounts)

 

Three months ended,

 

 

Nine months ended,

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

8,025

 

 

$

7,156

 

 

$

8,461

 

 

$

22,372

 

 

$

25,705

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,783

 

 

 

1,543

 

 

 

782

 

 

 

4,379

 

 

 

2,356

 

Tax-exempt

 

 

780

 

 

 

730

 

 

 

748

 

 

 

2,232

 

 

 

2,285

 

Total interest income

 

 

10,588

 

 

 

9,429

 

 

 

9,991

 

 

 

28,983

 

 

 

30,346

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

771

 

 

 

358

 

 

 

258

 

 

 

1,324

 

 

 

800

 

Borrowed funds

 

 

366

 

 

 

173

 

 

 

120

 

 

 

665

 

 

 

362

 

Total interest expense

 

 

1,137

 

 

 

531

 

 

 

378

 

 

 

1,989

 

 

 

1,162

 

Net interest income

 

 

9,451

 

 

 

8,898

 

 

 

9,613

 

 

 

26,994

 

 

 

29,184

 

Provision for (reversal of) loan losses

 

 

500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

500

 

Net interest income after provision for loan losses

 

 

8,951

 

 

 

8,898

 

 

 

9,613

 

 

 

26,994

 

 

 

28,684

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges

 

 

2,511

 

 

 

2,380

 

 

 

2,268

 

 

 

7,079

 

 

 

6,454

 

Gains on sales of loans, net

 

 

1,049

 

 

 

1,073

 

 

 

2,660

 

 

 

3,027

 

 

 

8,664

 

Bank owned life insurance

 

 

189

 

 

 

190

 

 

 

193

 

 

 

566

 

 

 

494

 

(Losses) gains on sales of investment securities, net

 

 

(353

)

 

 

-

 

 

 

30

 

 

 

(353

)

 

 

1,138

 

Other

 

 

133

 

 

 

153

 

 

 

314

 

 

 

569

 

 

 

913

 

Total non-interest income

 

 

3,529

 

 

 

3,796

 

 

 

5,465

 

 

 

10,888

 

 

 

17,663

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

5,051

 

 

 

4,953

 

 

 

5,132

 

 

 

14,779

 

 

 

15,096

 

Occupancy and equipment

 

 

1,335

 

 

 

1,177

 

 

 

1,101

 

 

 

3,745

 

 

 

3,268

 

Data processing

 

 

383

 

 

 

362

 

 

 

498

 

 

 

1,085

 

 

 

1,491

 

Amortization of mortgage servicing rights and other intangibles

 

 

314

 

 

 

335

 

 

 

376

 

 

 

965

 

 

 

1,225

 

Professional fees

 

 

472

 

 

 

415

 

 

 

413

 

 

 

1,338

 

 

 

1,236

 

Acquisition costs

 

 

134

 

 

 

221

 

 

 

-

 

 

 

355

 

 

 

-

 

Other

 

 

1,769

 

 

 

1,559

 

 

 

1,923

 

 

 

5,051

 

 

 

5,390

 

Total non-interest expense

 

 

9,458

 

 

 

9,022

 

 

 

9,443

 

 

 

27,318

 

 

 

27,706

 

Earnings before income taxes

 

 

3,022

 

 

 

3,672

 

 

 

5,635

 

 

 

10,564

 

 

 

18,641

 

Income tax expense

 

 

522

 

 

 

639

 

 

 

1,118

 

 

 

1,898

 

 

 

3,777

 

Net earnings

 

$

2,500

 

 

$

3,033

 

 

$

4,517

 

 

$

8,666

 

 

$

14,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.50

 

 

$

0.61

 

 

$

0.90

 

 

$

1.74

 

 

$

2.98

 

Diluted

 

 

0.50

 

 

 

0.61

 

 

 

0.90

 

 

 

1.73

 

 

 

2.97

 

Dividends per share (1)

 

 

0.21

 

 

 

0.21

 

 

 

0.19

 

 

 

0.63

 

 

 

0.57

 

Shares outstanding at end of period (1)

 

 

4,973,301

 

 

 

4,976,344

 

 

 

4,997,618

 

 

 

4,973,301

 

 

 

4,997,618

 

Weighted average common shares outstanding - basic (1)

 

 

4,979,305

 

 

 

4,988,416

 

 

 

4,996,419

 

 

 

4,988,327

 

 

 

4,993,808

 

Weighted average common shares outstanding - diluted (1)

 

 

4,992,450

 

 

 

5,002,425

 

 

 

5,010,973

 

 

 

5,003,158

 

 

 

5,003,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent net interest income

 

$

9,657

 

 

$

9,094

 

 

$

9,815

 

 

$

27,591

 

 

$

29,800

 

(1) Share and per share values at or for the periods ended September 30, 2021 have been adjusted to give effect to the 5% stock dividend paid during December 2021.


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,

 

 

Nine months ended,

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

 

0.76

%

 

 

0.93

%

 

 

1.42

%

 

 

0.89

%

 

 

1.59

%

Return on average equity (1)

 

 

8.33

%

 

 

10.04

%

 

 

13.36

%

 

 

9.33

%

 

 

15.23

%

Net interest margin (1)(2)

 

 

3.21

%

 

 

3.05

%

 

 

3.36

%

 

 

3.08

%

 

 

3.47

%

Effective tax rate

 

 

17.3

%

 

 

17.4

%

 

 

19.8

%

 

 

18.0

%

 

 

20.3

%

Efficiency ratio (3)

 

 

69.6

%

 

 

69.1

%

 

 

61.2

%

 

 

70.4

%

 

 

59.8

%

Non-interest income to total income (3)

 

 

29.1

%

 

 

29.9

%

 

 

36.0

%

 

 

29.2

%

 

 

36.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

494,283

 

 

$

477,035

 

 

$

351,215

 

 

$

464,702

 

 

$

329,427

 

Loans

 

 

687,716

 

 

 

653,013

 

 

 

667,952

 

 

 

659,109

 

 

 

702,450

 

Assets

 

 

1,307,866

 

 

 

1,307,112

 

 

 

1,261,954

 

 

 

1,306,938

 

 

 

1,248,827

 

Interest-bearing deposits

 

 

782,533

 

 

 

791,257

 

 

 

769,658

 

 

 

788,678

 

 

 

768,057

 

Subordinated debentures and other borrowings

 

 

37,532

 

 

 

21,651

 

 

 

21,655

 

 

 

27,003

 

 

 

21,654

 

Repurchase agreements

 

 

7,411

 

 

 

6,981

 

 

 

5,348

 

 

 

7,074

 

 

 

5,218

 

Stockholders' equity

 

$

119,100

 

 

$

121,147

 

 

$

134,167

 

 

$

124,177

 

 

$

130,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tax equivalent yield/cost (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

2.18

%

 

 

1.97

%

 

 

1.88

%

 

 

2.00

%

 

 

2.08

%

Loans

 

 

4.63

%

 

 

4.40

%

 

 

5.03

%

 

 

4.54

%

 

 

4.90

%

Total interest-bearing assets

 

 

3.59

%

 

 

3.23

%

 

 

3.49

%

 

 

3.31

%

 

 

3.61

%

Interest-bearing deposits

 

 

0.39

%

 

 

0.18

%

 

 

0.13

%

 

 

0.22

%

 

 

0.14

%

Subordinated debentures and other borrowings

 

 

3.58

%

 

 

3.06

%

 

 

2.14

%

 

 

3.10

%

 

 

2.19

%

Repurchase agreements

 

 

1.45

%

 

 

0.46

%

 

 

0.22

%

 

 

0.72

%

 

 

0.18

%

Total interest-bearing liabilities

 

 

0.55

%

 

 

0.26

%

 

 

0.19

%

 

 

0.32

%

 

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets

 

 

7.78

%

 

 

9.08

%

 

 

10.79

%

 

 

 

 

 

 

 

 

Tangible equity to tangible assets (3)

 

 

6.57

%

 

 

7.82

%

 

 

9.52

%

 

 

 

 

 

 

 

 

Book value per share

 

$

21.21

 

 

$

23.57

 

 

$

27.09

 

 

 

 

 

 

 

 

 

Tangible book value per share (3)

 

$

17.68

 

 

$

20.04

 

 

$

23.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rollforward of allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

8,315

 

 

$

8,357

 

 

$

9,163

 

 

$

8,775

 

 

$

8,775

 

Charge-offs

 

 

(106

)

 

 

(76

)

 

 

(616

)

 

 

(235

)

 

 

(908

)

Recoveries

 

 

149

 

 

 

34

 

 

 

219

 

 

 

318

 

 

 

399

 

Provision for loan losses

 

 

500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

500

 

Ending balance

 

$

8,858

 

 

$

8,315

 

 

$

8,766

 

 

$

8,858

 

 

$

8,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

4,823

 

 

$

4,887

 

 

$

9,829

 

 

 

 

 

 

 

 

 

Accruing loans over 90 days past due

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Real estate owned

 

 

1,288

 

 

 

1,288

 

 

 

2,578

 

 

 

 

 

 

 

 

 

Total non-performing assets

 

$

6,111

 

 

$

6,175

 

 

$

12,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days delinquent

 

$

657

 

 

$

877

 

 

$

1,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans to deposits

 

 

62.85

%

 

 

58.49

%

 

 

61.58

%

 

 

 

 

 

 

 

 

Loans 30-89 days delinquent and still accruing to gross loans outstanding

 

 

0.09

%

 

 

0.13

%

 

 

0.23

%

 

 

 

 

 

 

 

 

Total non-performing loans to gross loans outstanding

 

 

0.68

%

 

 

0.73

%

 

 

1.48

%

 

 

 

 

 

 

 

 

Total non-performing assets to total assets

 

 

0.45

%

 

 

0.48

%

 

 

0.99

%

 

 

 

 

 

 

 

 

Allowance for loan losses to gross loans outstanding

 

 

1.25

%

 

 

1.24

%

 

 

1.32

%

 

 

 

 

 

 

 

 

Allowance for loan losses to gross loans outstanding excluding PPP loans

 

 

1.25

%

 

 

1.24

%

 

 

1.38

%

 

 

 

 

 

 

 

 

Allowance for loan losses to total non-performing loans

 

 

183.66

%

 

 

170.15

%

 

 

89.19

%

 

 

 

 

 

 

 

 

Net loan charge-offs to average loans (1)

 

 

-0.02

%

 

 

0.03

%

 

 

0.24

%

 

 

-0.02

%

 

 

0.10

%

(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 SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)

 

 

As of or for the

 

 

 

 

(Dollars in thousands, except per share amounts)

 

three months ended,

 

 

Nine months ended,

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Non-GAAP financial ratio reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

$

9,458

 

 

$

9,022

 

 

$

9,443

 

 

$

27,318

 

 

$

27,706

 

Less: foreclosure and real estate owned expense

 

 

(32

)

 

 

(9

)

 

 

(215

)

 

 

(64

)

 

 

(291

)

Less: amortization of other intangibles

 

 

(16

)

 

 

(15

)

 

 

(28

)

 

 

(48

)

 

 

(102

)

Less: acquisition costs

 

 

(134

)

 

 

(221

)

 

 

-

 

 

 

(355

)

 

 

-

 

Adjusted non-interest expense (A)

 

 

9,276

 

 

 

8,777

 

 

 

9,200

 

 

 

26,851

 

 

 

27,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (B)

 

 

9,451

 

 

 

8,898

 

 

 

9,613

 

 

 

26,994

 

 

 

29,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

3,529

 

 

 

3,796

 

 

 

5,465

 

 

 

10,888

 

 

 

17,663

 

Less: losses (gains) on sales of investment securities, net

 

 

353

 

 

 

-

 

 

 

(30

)

 

 

353

 

 

 

(1,138

)

Less: gains on sales of premises and equipment and foreclosed assets

 

 

-

 

 

 

-

 

 

 

(19

)

 

 

(114

)

 

 

(24

)

Adjusted non-interest income (C)

 

$

3,882

 

 

$

3,796

 

 

$

5,416

 

 

$

11,127

 

 

$

16,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (A/(B+C))

 

 

69.6

%

 

 

69.1

%

 

 

61.2

%

 

 

70.4

%

 

 

59.8

%

Non-interest income to total income (C/(B+C))

 

 

29.1

%

 

 

29.9

%

 

 

36.0

%

 

 

29.2

%

 

 

36.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

105,484

 

 

$

117,302

 

 

$

135,406

 

 

 

 

 

 

 

 

 

Less: goodwill and other intangible assets

 

 

(17,568

)

 

 

(17,584

)

 

 

(17,636

)

 

 

 

 

 

 

 

 

Tangible equity (D)

 

$

87,916

 

 

$

99,718

 

 

$

117,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,355,296

 

 

$

1,292,351

 

 

$

1,254,534

 

 

 

 

 

 

 

 

 

Less: goodwill and other intangible assets

 

 

(17,568

)

 

 

(17,584

)

 

 

(17,636

)

 

 

 

 

 

 

 

 

Tangible assets (E)

 

$

1,337,728

 

 

$

1,274,767

 

 

$

1,236,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets (D/E)

 

 

6.57

%

 

 

7.82

%

 

 

9.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at end of period (F)

 

 

4,973,301

 

 

 

4,976,344

 

 

 

4,997,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (D/F)

 

$

17.68

 

 

$

20.04

 

 

$

23.57