Group 1 - Landmark Bancorp (NASDAQ: LARK) is the holding company for Landmark National Bank, which operates nearly 30 branches across 23 communities in Kansas [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Group 1 - Landmark Bancorp (NASDAQ: LARK) is the holding company for Landmark National Bank, which is headquartered in Kansas and operates nearly 30 branches across 23 communities in the state [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income for continuous cash flow [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Accessibility StatementSkip Navigation NEW YORK, Sept. 16, 2025 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Landmark Bancorp, Inc. (NASDAQ: LARK) on behalf of the company's shareholders. The investigation seeks to determine whether Landmark Bancorp, Inc.'s directors breached their fiduciary duties in connection with recent corporate actions. If you are a shareholder of Landmark Bancorp, Inc. and are interested in obtaining additional information about your rights and options ...

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides the Company's unaudited financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the Company's unaudited consolidated financial statements, including balance sheets, statements of earnings, comprehensive income, stockholders' equity, and cash flows, along with detailed notes providing further context on investments, loans, intangible assets, borrowings, revenue, fair value measurements, and regulatory capital [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Presents the Company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :----- | | Total Assets | $1,624,865 | $1,574,142 | +$50,723 | | Cash and cash equivalents | $25,038 | $20,275 | +$4,763 | | Loans, net | $1,103,407 | $1,039,221 | +$64,186 | | Total Liabilities | $1,476,489 | $1,437,927 | +$38,562 | | Total Deposits | $1,273,901 | $1,328,766 | -$54,865 | | FHLB and other borrowings | $155,110 | $53,046 | +$102,064 | | Total Stockholders' Equity | $148,376 | $136,215 | +$12,161 | [Consolidated Statements of Earnings](index=5&type=section&id=Consolidated%20Statements%20of%20Earnings) Details the Company's revenues, expenses, and net earnings over specific reporting periods | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net earnings | $4,404 | $3,012 | $9,105 | $5,790 | | Basic EPS | $0.76 | $0.52 | $1.58 | $1.01 | | Diluted EPS | $0.75 | $0.52 | $1.56 | $1.01 | | Dividends per share | $0.21 | $0.20 | $0.42 | $0.40 | | Total interest income | $20,098 | $18,180 | $39,440 | $35,925 | | Total interest expense | $6,415 | $7,206 | $12,638 | $14,204 | | Net interest income | $13,683 | $10,974 | $26,802 | $21,721 | | Provision for credit losses | $1,000 | $- | $1,000 | $300 | | Total non-interest income | $3,626 | $3,720 | $6,984 | $7,120 | | Total non-interest expense | $10,961 | $11,095 | $21,722 | $21,646 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net earnings and other comprehensive income items, reflecting total changes in equity from non-owner sources | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net earnings | $4,404 | $3,012 | $9,105 | $5,790 | | Net unrealized holding gains (losses) on AFS securities | $3,189 | $(402) | $6,949 | $(2,859) | | Other comprehensive income (loss) | $2,417 | $(303) | $5,268 | $(2,158) | | Total comprehensive income | $6,821 | $2,709 | $14,373 | $3,632 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in equity components, including net earnings, dividends, and other comprehensive income | Metric | Balance at January 1, 2025 (in thousands) | Net Earnings (in thousands) | Other Comprehensive Income (in thousands) | Dividends Paid (in thousands) | Stock-based Compensation (in thousands) | Balance at June 30, 2025 (in thousands) | | :-------------------------------- | :---------------------------------------- | :-------------------------- | :---------------------------------------- | :---------------------------- | :-------------------------------------- | :---------------------------------------- | | Common stock | $58 | - | - | - | - | $58 | | Additional paid-in capital | $95,051 | - | - | - | $215 | $95,266 | | Retained earnings | $56,934 | $9,105 | - | $(2,427) | - | $63,612 | | Accumulated other comprehensive loss | $(15,828) | - | $5,268 | - | - | $(10,560) | | Total stockholders' equity | $136,215 | $9,105 | $5,268 | $(2,427) | $215 | $148,376 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (Six months ended June 30, in thousands) | 2025 | 2024 | | :-------------------------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $8,457 | $7,226 | | Net cash used in investing activities | $(40,483) | $(4,815) | | Net cash provided by (used in) financing activities | $36,789 | $(5,623) | | Net increase (decrease) in cash and cash equivalents | $4,763 | $(3,212) | | Cash and cash equivalents at end of period | $25,038 | $23,889 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the consolidated financial statements - The unaudited consolidated financial statements are prepared in accordance with Form 10-Q instructions and should be read in conjunction with the Company's most recent Annual Report on Form 10-K[29](index=29&type=chunk) - Management believes all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of financial statements have been reflected[29](index=29&type=chunk) - The results of the six-month interim period ended June 30, 2025, are not necessarily indicative of the results expected for the year ending December 31, 2025, or any other future time period[29](index=29&type=chunk) [Note 1. Interim Financial Statements](index=10&type=section&id=Note%201.%20Interim%20Financial%20Statements) This note clarifies that the financial statements are unaudited, prepared per Form 10-Q, and should be read in conjunction with the latest 10-K. Management confirms all necessary adjustments for fair presentation have been made, and prior year amounts have been reclassified for consistency - Financial statements are unaudited and prepared in accordance with Form 10-Q, requiring review with the Company's latest Annual Report on Form 10-K[29](index=29&type=chunk) - Management's opinion is that all necessary adjustments for fair presentation have been reflected[29](index=29&type=chunk) - Interim results are not necessarily indicative of future periods[29](index=29&type=chunk) [Note 2. Investments](index=10&type=section&id=Note%202.%20Investments) The Company's investment portfolio includes available-for-sale (AFS) and held-to-maturity (HTM) securities. AFS securities decreased in fair value from $372.5 million to $352.4 million, with significant unrealized losses, particularly in municipal obligations and agency mortgage-backed securities, though management believes these are temporarily impaired. HTM securities remained stable | Investment Type | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | June 30, 2025 Gross Unrealized Losses (in thousands) | December 31, 2024 Gross Unrealized Losses (in thousands) | | :-------------------------------- | :-------------------------------------- | :---------------------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | | Available-for-sale | $352,442 | $372,512 | $(14,828) | $(21,094) | | Held-to-maturity | $3,448 | $3,290 | $(282) | $(382) | - Management determined that no allowance for credit losses for available-for-sale securities was needed at June 30, 2025, and December 31, 2024, believing unrealized losses were temporary[35](index=35&type=chunk) - Securities with carrying values of **$288.7 million** (June 30, 2025) and **$305.3 million** (December 31, 2024) were pledged to secure public funds, repurchase agreements, and borrowings[39](index=39&type=chunk) [Note 3. Loans and Allowance for Credit Losses](index=14&type=section&id=Note%203.%20Loans%20and%20Allowance%20for%20Credit%20Losses) Gross loans increased to $1.12 billion at June 30, 2025, from $1.05 billion at December 31, 2024, with growth across most categories, especially residential and commercial real estate. The allowance for credit losses increased to $13.8 million (1.23% of gross loans) from $12.8 million (1.22%), driven by loan growth and higher reserves for individually evaluated non-accrual loans. Non-accrual loans increased to $17.0 million | Loan Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Total gross loans | $1,117,784 | $1,052,353 | | Allowance for credit losses | $(13,762) | $(12,825) | | Loans, net | $1,103,407 | $1,039,221 | | Credit Quality Indicator | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Non-accrual loans | $16,984 | $13,115 | | Loans past due 30-89 days and accruing | $4,321 | $6,201 | | Classified loans | $34,989 | $26,079 | - The provision for credit losses was **$1.0 million** for both the three and six months ended June 30, 2025, compared to **$0** and **$300,000** respectively in 2024, primarily due to loan growth and higher reserves against individually evaluated non-accrual loans[122](index=122&type=chunk)[123](index=123&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=21&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) The Company's goodwill was not impaired as of December 31, 2024, and management concluded it was not impaired at June 30, 2025. Core deposit intangible assets, amortized over ten years, had a net carrying amount of $2.28 million at June 30, 2025 - Goodwill was not impaired as of December 31, 2024, and management believes it was not impaired at June 30, 2025[54](index=54&type=chunk) | Intangible Asset | June 30, 2025 Net Carrying Amount (in thousands) | December 31, 2024 Net Carrying Amount (in thousands) | | :----------------------------- | :--------------------------------------------- | :----------------------------------------------- | | Core deposit intangible assets | $2,275 | $2,578 | | Year | Estimated Amortization Expense (in thousands) | | :---------------- | :------------------------------------ | | Remainder of 2025 | $285 | | 2026 | $512 | | 2027 | $436 | | 2028 | $360 | | 2029 | $284 | | 2030 | $208 | | Thereafter | $190 | | Total | $2,275 | [Note 5. Mortgage Loan Servicing](index=22&type=section&id=Note%205.%20Mortgage%20Loan%20Servicing) The principal balance of mortgage loans serviced for others decreased to $635.8 million at June 30, 2025, from $653.8 million at December 31, 2024. Mortgage servicing rights (MSRs) had a fair value of $8.8 million at June 30, 2025, down from $9.6 million at December 31, 2024, with specific valuation assumptions detailed | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Principal balance of mortgage loans serviced for others | $635,757 | $653,797 | | Fair value of mortgage servicing rights | $8,800 | $9,600 | - Gross service fee income related to mortgage loans serviced for others was **$404,000** for the three months ended June 30, 2025, and **$819,000** for the six months ended June 30, 2025[58](index=58&type=chunk) - The Company had a mortgage repurchase reserve of **$115,000** at June 30, 2025, and charged **$81,000** of losses against the reserve during the six months ended June 30, 2025[60](index=60&type=chunk) [Note 6. Earnings per Share](index=23&type=section&id=Note%206.%20Earnings%20per%20Share) Basic EPS for Q2 2025 was $0.76 and diluted EPS was $0.75, based on weighted average common shares outstanding of 5,782,555 and 5,840,923, respectively. For the six months ended June 30, 2025, basic EPS was $1.58 and diluted EPS was $1.56 | Metric | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :------------------------------------ | :------------------------------- | :----------------------------- | | Net earnings (in thousands) | $4,404 | $9,105 | | Weighted average common shares outstanding - basic | 5,782,555 | 5,780,930 | | Weighted average common shares outstanding - diluted | 5,840,923 | 5,827,844 | | Basic EPS | $0.76 | $1.58 | | Diluted EPS | $0.75 | $1.56 | - The Board of Directors declared a cash dividend of **$0.21 per share** to be paid August 27, 2025[61](index=61&type=chunk) [Note 7. Federal Home Loan Bank Borrowings and Other Borrowings](index=23&type=section&id=Note%207.%20Federal%20Home%20Loan%20Bank%20Borrowings%20and%20Other%20Borrowings) FHLB borrowings significantly increased to $151.6 million at June 30, 2025, from $48.8 million at December 31, 2024. The Bank's total borrowing capacity with the FHLB was $304.5 million, with $111.4 million available. The Company also has a $5.0 million line of credit and a $3.5 million outstanding borrowing from an unrelated financial institution | Borrowing Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | FHLB borrowings | $151,600 | $48,800 | | Total FHLB borrowing capacity | $304,500 | $281,200 | | Available FHLB borrowing capacity | $111,400 | $171,000 | | Outstanding balance on line of credit from unrelated financial institution | $0 | $0 | | Outstanding borrowing from unrelated financial institution | $3,500 | $4,200 | - The FHLB line of credit accrues interest at the federal funds rate plus **0.15%** (**4.59%** at June 30, 2025)[62](index=62&type=chunk) - The Company had no borrowings through the Federal Reserve discount window at June 30, 2025, while its borrowing capacity was **$44.5 million**[64](index=64&type=chunk) [Note 8. Repurchase Agreements](index=24&type=section&id=Note%208.%20Repurchase%20Agreements) Repurchase agreements, collateralized by investment securities, decreased to $5.8 million at June 30, 2025, from $13.8 million at December 31, 2024. These are primarily overnight agreements secured by U.S. treasury securities | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Repurchase agreements | $5,825 | $13,808 | | Investment securities as collateral | $10,800 | $15,200 | - Repurchase agreements are comprised of non-insured customer funds and are secured by investment securities held by a third-party financial institution[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 9. Revenue from Contracts with Customers](index=24&type=section&id=Note%209.%20Revenue%20from%20Contracts%20with%20Customers) Non-interest income, including service charges on deposit accounts, interchange income, and gains on sales of loans, totaled $3.6 million for Q2 2025 and $7.0 million for YTD 2025. Overdraft fees and interchange income saw decreases compared to the prior year | Non-Interest Income (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Overdraft fees | $880 | $992 | $1,764 | $1,953 | | Interchange income | $676 | $777 | $1,263 | $1,461 | | Gains on sales of loans, net | $740 | $648 | $1,302 | $1,160 | | Total non-interest income | $3,626 | $3,720 | $6,984 | $7,120 | - Service charges on deposit accounts are recognized for transaction-based, account maintenance, and overdraft services[72](index=72&type=chunk) - Interchange fees from debit cardholder transactions are recognized daily[73](index=73&type=chunk) [Note 10. Fair Value of Financial Instruments and Fair Value Measurements](index=25&type=section&id=Note%2010.%20Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) The Company categorizes financial instruments into Level 1, 2, or 3 based on input observability. Available-for-sale securities are primarily Level 1 (U.S. treasury) and Level 2 (municipal, agency MBS). Loans held for sale and derivative financial instruments are Level 2. Loans, net, and accrued interest receivable have significant Level 3 inputs - Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market[75](index=75&type=chunk) - Level 1 inputs are quoted prices for identical assets/liabilities in active markets; Level 2 are significant other observable inputs; Level 3 are significant unobservable inputs[75](index=75&type=chunk)[76](index=76&type=chunk) | Financial Instrument (Assets, June 30, 2025, in thousands) | Carrying Amount | Fair Value (Total) | Level 1 | Level 2 | Level 3 | | :------------------------------------------------------- | :---------------- | :----------------- | :------ | :------ | :-------- | | Cash and cash equivalents | $25,038 | $25,038 | $25,038 | $- | $- | | Investment securities available-for-sale | $352,442 | $352,442 | $51,624 | $300,818 | $- | | Loans, net | $1,103,407 | $1,102,118 | $- | $- | $1,102,118 | | Loans held for sale | $4,773 | $4,773 | $- | $4,773 | $- | [Note 11. Regulatory Capital Requirements](index=29&type=section&id=Note%2011.%20Regulatory%20Capital%20Requirements) Both the Company and the Bank met all "well capitalized" regulatory capital adequacy requirements at June 30, 2025, and December 31, 2024, including the capital conservation buffer. The Bank's actual capital ratios exceeded minimum requirements - Management believes the Company and the Bank met all capital adequacy requirements to which they were subject as of June 30, 2025, and December 31, 2024[89](index=89&type=chunk) - The Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action[92](index=92&type=chunk) | Capital Ratio (Company, June 30, 2025) | Actual Ratio | Minimum for Adequacy (incl. buffer) | | :------------------------------------- | :----------- | :---------------------------------- | | Leverage | 9.32% | 4.0% | | Common Equity Tier 1 Capital | 10.57% | 7.0% | | Tier 1 Capital | 12.34% | 8.5% | | Total Risk Based Capital | 13.49% | 10.5% | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=31&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial performance and condition for the periods ended June 30, 2025. It highlights significant increases in net earnings driven by higher net interest income and lower interest expense, alongside changes in asset quality, liability distribution, and liquidity management strategies - Net earnings increased by **46.2%** to **$4.4 million** in Q2 2025 and by **57.3%** to **$9.1 million** in YTD 2025, primarily due to increased net interest income and lower interest expense[106](index=106&type=chunk) - The Company's strategy focuses on holding and acquiring quality assets while growing commercial, commercial real estate (CRE), and agriculture loan portfolios[98](index=98&type=chunk) - The Company maintains strong capital and liquidity, with a stable, conservative, retail-based, and FDIC-insured deposit portfolio[131](index=131&type=chunk) [Overview](index=31&type=section&id=Overview) Landmark Bancorp, Inc. operates as a financial holding company through Landmark National Bank and Landmark Risk Management, Inc., providing banking and insurance services. The Bank focuses on attracting deposits and originating various loans, with a strategy to grow quality assets and loan portfolios. The Company declared its 96th consecutive quarterly dividend, maintaining a strong capital and liquidity position - Landmark Bancorp, Inc. is a financial holding company engaged in banking (Landmark National Bank) and insurance (Landmark Risk Management, Inc.)[98](index=98&type=chunk) - The Bank's strategy involves holding and acquiring quality assets and growing commercial, commercial real estate, and agriculture loan portfolios[98](index=98&type=chunk) - The Company declared its **96th consecutive quarterly dividend** and maintains a strong capital and liquidity position[104](index=104&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Critical%20Accounting%20Policies) The Company's critical accounting policies, including the allowance for credit losses and accounting for business combinations, involve significant management judgment. No material changes to these policies were reported since the December 31, 2024 Annual Report on Form 10-K - Critical accounting policies relate to the allowance for credit losses and accounting for business combinations, requiring significant management judgment[105](index=105&type=chunk) - No material changes to critical accounting policies were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[105](index=105&type=chunk) [Summary of Results](index=32&type=section&id=Summary%20of%20Results) Net earnings for the second quarter of 2025 increased by 46.2% to $4.4 million, and for the first six months of 2025, they increased by 57.3% to $9.1 million. This growth was primarily driven by higher net interest income due to increased loan balances and lower interest expense from reduced short-term interest rates | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :------ | :------ | :------- | :------- | | Net earnings (in millions) | $4.4 | $3.0 | $9.1 | $5.8 | | Basic EPS | $0.76 | $0.52 | $1.58 | $1.01 | | Return on average assets | 1.11% | 0.78% | 1.16% | 0.75% | | Return on average equity | 12.25% | 9.72% | 12.96% | 9.30% | | Net interest margin | 3.83% | 3.21% | 3.80% | 3.16% | - The increase in net earnings was primarily related to an increase in net interest income, driven by growth in interest income on loans due to increased average loan balances and lower interest expense due to lower short-term interest rates[106](index=106&type=chunk) [Interest Income](index=32&type=section&id=Interest%20Income) Total interest income increased by 10.6% to $20.1 million in Q2 2025 and by 9.8% to $39.4 million in YTD 2025. This growth was primarily due to a 14.4% increase in interest income on loans, driven by higher average loan balances and yields. Interest income on investment securities decreased due to lower average balances, despite higher yields | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Total interest income | $20,098 | $18,180 | $39,440 | $35,925 | | Interest income on loans | $17,186 | $15,022 | $33,581 | $29,512 | | Average loan balances | $1,100,000 | $955,100 | $1,100,000 | $950,400 | | Yields on loans | 6.37% | 6.33% | 6.36% | 6.25% | | Interest income on investment securities | $2,864 | $3,118 | $5,763 | $6,310 | | Average investment securities balances | $363,900 | $437,100 | $370,500 | $447,000 | | Yields on investment securities | 3.34% | 3.04% | 3.32% | 2.99% | [Interest Expense](index=33&type=section&id=Interest%20Expense) Total interest expense decreased by $791,000 to $6.4 million in Q2 2025 and by $1.6 million to $12.6 million in YTD 2025. This reduction was primarily due to lower rates on deposits and borrowings, partially offset by an increase in average interest-bearing deposit balances | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Total interest expense | $6,415 | $7,206 | $12,638 | $14,204 | | Interest expense on deposits | $5,144 | $5,673 | $10,380 | $11,130 | | Cost of interest-bearing deposits | 2.14% | 2.44% | 2.15% | 2.39% | | Average interest-bearing deposit balances | $965,200 | $936,200 | $972,500 | $935,800 | | Interest expense on borrowings | $1,271 | $1,533 | $2,258 | $3,074 | | Rates on borrowings | 4.98% | 5.81% | 5.03% | 5.76% | [Net Interest Income](index=33&type=section&id=Net%20Interest%20Income) Net interest income increased by 24.7% to $13.7 million in Q2 2025 and by 23.4% to $26.8 million in YTD 2025, primarily due to higher interest income on loans and lower interest expense. The net interest margin (tax-equivalent) improved to 3.83% in Q2 2025 and 3.80% in YTD 2025 | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Net interest income | $13,683 | $10,974 | $26,802 | $21,721 | | Net interest margin (tax-equivalent) | 3.83% | 3.21% | 3.80% | 3.16% | - Accretion of purchase accounting adjustments increased net interest income by **$196,000** in Q2 2025 and **$380,000** in YTD 2025, primarily related to fair value adjustments on loans acquired in the Freedom Bank transaction[113](index=113&type=chunk)[114](index=114&type=chunk) [Average Assets/Liabilities](index=34&type=section&id=Average%20Assets%2FLiabilities) Average interest-earning assets increased to $1.45 billion in Q2 2025 and $1.44 billion in YTD 2025, primarily driven by loan growth. Average interest-bearing liabilities also increased, but the average cost decreased, leading to an improved interest rate spread and net interest margin | Metric (Q2) | 2025 Average Balance (in thousands) | 2025 Average Yield/Cost | 2024 Average Balance (in thousands) | 2024 Average Yield/Cost | | :-------------------------------- | :---------------------------------- | :---------------------- | :---------------------------------- | :---------------------- | | Total interest-earning assets | $1,451,911 | 5.60% | $1,397,940 | 5.29% | | Total interest-bearing liabilities | $1,067,555 | 2.41% | $1,042,287 | 2.78% | | Interest rate spread | | 3.19% | | 2.51% | | Net interest margin | | 3.83% | | 3.21% | | Metric (YTD) | 2025 Average Balance (in thousands) | 2025 Average Yield/Cost | 2024 Average Balance (in thousands) | 2024 Average Yield/Cost | | :-------------------------------- | :---------------------------------- | :---------------------- | :---------------------------------- | :---------------------- | | Total interest-earning assets | $1,441,973 | 5.56% | $1,404,061 | 5.20% | | Total interest-bearing liabilities | $1,063,052 | 2.40% | $1,043,172 | 2.74% | | Interest rate spread | | 3.16% | | 2.46% | | Net interest margin | | 3.80% | | 3.16% | [Rate/Volume Table](index=36&type=section&id=Rate%2FVolume%20Table) The increase in net interest income for both the three and six months ended June 30, 2025, was primarily driven by a positive rate effect, particularly from lower interest expense on deposits and borrowings, combined with a positive volume effect from loans | Change in Net Interest Margin (in thousands) | Q2 2025 vs 2024 (Volume) | Q2 2025 vs 2024 (Rate) | Q2 2025 vs 2024 (Net) | YTD 2025 vs 2024 (Volume) | YTD 2025 vs 2024 (Rate) | YTD 2025 vs 2024 (Net) | | :----------------------------------------- | :----------------------- | :--------------------- | :-------------------- | :------------------------ | :---------------------- | :--------------------- | | Interest income | $1,391 | $502 | $1,893 | $1,947 | $1,554 | $3,501 | | Interest expense | $156 | $(947) | $(791) | $100 | $(1,666) | $(1,566) | | Net interest margin | $1,235 | $1,449 | $2,684 | $1,847 | $3,220 | $5,067 | [Provision for Credit Losses](index=36&type=section&id=Provision%20for%20Credit%20Losses) A $1.0 million provision for credit losses on loans was recorded in Q2 2025 and YTD 2025, compared to no provision in Q2 2024 and $300,000 in YTD 2024. This increase was primarily due to loan growth and higher reserves against individually evaluated non-accrual loans. Net loan charge-offs were $40,000 in Q2 2025 and $63,000 in YTD 2025, contrasting with net recoveries in the prior year periods | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Provision for credit losses | $1,000 | $- | $1,000 | $300 | | Net loan charge-offs (recoveries) | $40 | $(52) | $63 | $(45) | - The provision increase was primarily due to loan growth and higher reserves against individually evaluated loans on non-accrual[122](index=122&type=chunk) [Non-interest Income](index=36&type=section&id=Non-interest%20Income) Total non-interest income decreased by 2.5% to $3.6 million in Q2 2025 and by 1.9% to $7.0 million in YTD 2025. This decline was mainly due to lower fees and service charges on deposit accounts, partially offset by increased gains on sales of residential real estate loans and bank-owned life insurance income | Non-Interest Income (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Total non-interest income | $3,626 | $3,720 | $6,984 | $7,120 | | Fees and service charges | $2,476 | $2,691 | $4,864 | $5,152 | | Gains on sales of loans, net | $740 | $648 | $1,302 | $1,160 | | Increase in cash surrender value of bank owned life insurance | $278 | $248 | $550 | $493 | - The decrease in fees and service charges was primarily due to lower fees related to deposit accounts[125](index=125&type=chunk)[126](index=126&type=chunk) [Non-interest Expense](index=36&type=section&id=Non-interest%20Expense) Total non-interest expense decreased by 1.2% to $11.0 million in Q2 2025 but increased by 0.4% to $21.7 million in YTD 2025. The Q2 decrease was mainly due to a valuation allowance on real estate held for sale in the prior year, while the YTD increase was driven by higher compensation and benefits due to additional staffing and benefit costs | Non-Interest Expense (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Total non-interest expense | $10,961 | $11,095 | $21,722 | $21,646 | | Compensation and benefits | $6,234 | $5,504 | $12,388 | $11,036 | | Valuation allowance on real estate held for sale | $- | $979 | $- | $1,108 | | Data processing | $629 | $492 | $1,025 | $973 | - The increase in compensation and benefits was due to additional staffing and higher benefit costs[127](index=127&type=chunk)[128](index=128&type=chunk) [Income Tax Expense](index=37&type=section&id=Income%20Tax%20Expense) Income tax expense increased to $944,000 in Q2 2025 and $2.0 million in YTD 2025, with the effective tax rate rising to 17.7% for both periods. This increase was attributed to higher earnings before taxes while tax-exempt income remained consistent | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :----------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Income tax expense | $944 | $587 | $1,959 | $1,105 | | Effective tax rate | 17.7% | 16.3% | 17.7% | 16.0% | - The increase in the effective tax rate was due to higher earnings before taxes while tax-exempt income was consistent[129](index=129&type=chunk)[130](index=130&type=chunk) [Financial Condition](index=37&type=section&id=Financial%20Condition) The Company's financial condition remains strong despite sluggish economic conditions, elevated inflation, and high interest rates. It maintains robust capital and liquidity, a stable deposit portfolio, and actively manages interest rate and concentration risks. Asset quality remains strong, with management focused on resolving problem loans - Economic conditions remained sluggish with elevated inflation and high interest rates impacting the economy[131](index=131&type=chunk) - The Company maintains strong capital and liquidity, and a stable, conservative deposit portfolio, with a significant majority being retail-based and FDIC-insured[131](index=131&type=chunk) - Asset quality has remained strong, with management actively working to resolve problem credits[131](index=131&type=chunk) [Asset Quality and Distribution](index=37&type=section&id=Asset%20Quality%20and%20Distribution) Total assets were $1.6 billion at June 30, 2025. The allowance for credit losses on loans increased to $13.8 million (1.23% of gross loans) from $12.8 million (1.22%) at December 31, 2024, driven by loan growth and higher reserves for individually evaluated non-accrual loans. Classified loans and non-accrual loans increased, while loans past due 30-89 days decreased - Total assets were **$1.6 billion** at June 30, 2025[132](index=132&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Allowance for credit losses on loans | $13.8 million | $12.8 million | | Allowance for credit losses as % of gross loans | 1.23% | 1.22% | | Classified loans | $35.0 million | $26.1 million | | Loans past due 30-89 days and accruing | $4.3 million | $6.2 million | | Non-accrual loans | $17.0 million | $13.1 million | - The increase in allowance for credit losses was primarily due to loan growth and higher reserves against individually evaluated loans on non-accrual[133](index=133&type=chunk) [Liability Distribution](index=38&type=section&id=Liability%20Distribution) Total deposits decreased by $54.9 million (4.1%) to $1.3 billion at June 30, 2025, primarily due to seasonal declines in public funds and brokered deposits. Non-interest-bearing deposits increased slightly, while money market and checking accounts decreased significantly due to a reduction in brokered deposits. Certificates of deposit increased, driven by brokered CDs. Total borrowings increased by $94.1 million to $182.6 million, mainly due to FHLB line of credit borrowings | Deposit Type (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total deposits | $1,273,901 | $1,328,766 | | Non-interest-bearing demand | $351,993 | $351,595 | | Money market and checking | $562,919 | $636,963 | | Savings | $148,092 | $145,514 | | Certificates of deposit | $210,897 | $194,694 | - Total borrowings increased by **$94.1 million** to **$182.6 million** at June 30, 2025, primarily due to an increase in FHLB line of credit borrowings[142](index=142&type=chunk) - Approximately **94.9%** of total deposits were considered core deposits at June 30, 2025[140](index=140&type=chunk) [Cash Flows](index=38&type=section&id=Cash%20Flows) For the first six months of 2025, cash and cash equivalents increased by $4.8 million. Operating activities generated $8.5 million, investing activities used $40.5 million (primarily due to loan growth), and financing activities provided $36.8 million (driven by increased borrowings offsetting deposit decreases) | Cash Flow Activity (Six months ended June 30, in thousands) | 2025 | 2024 | | :-------------------------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $8,457 | $7,226 | | Net cash used in investing activities | $(40,483) | $(4,815) | | Net cash provided by (used in) financing activities | $36,789 | $(5,623) | | Net increase (decrease) in cash and cash equivalents | $4,763 | $(3,212) | [Liquidity](index=38&type=section&id=Liquidity) The Company maintains strong liquidity with $380.9 million in liquid assets at June 30, 2025. It has access to additional funds through FHLB advances ($111.4 million available), Federal Reserve discount window ($44.5 million capacity), correspondent bank agreements ($30.0 million available), and existing lines of credit - Liquid assets (cash and cash equivalents, investment securities available-for-sale) totaled **$380.9 million** at June 30, 2025[144](index=144&type=chunk) - Available FHLB borrowing capacity was **$111.4 million** at June 30, 2025[145](index=145&type=chunk) - The Company had **$44.5 million** in borrowing capacity with the Federal Reserve and **$30.0 million** in available credit from correspondent banks, with no outstanding borrowings[145](index=145&type=chunk) [Off Balance Sheet Arrangements](index=39&type=section&id=Off%20Balance%20Sheet%20Arrangements) The Company had $2.2 million in outstanding standby letters of credit at June 30, 2025, which are contingent commitments secured by customer collateral. Additionally, it had $202 million in outstanding loan commitments, excluding standby letters of credit, and anticipates sufficient funds to meet these - Outstanding standby letters of credit totaled **$2.2 million** at June 30, 2025[146](index=146&type=chunk) - The Company had outstanding loan commitments, excluding standby letters of credit, of **$202 million** at June 30, 2025[147](index=147&type=chunk) - Standby letters of credit are subject to the same credit policies, underwriting standards, and approval process as loans and are mostly secured[146](index=146&type=chunk) [Capital](index=39&type=section&id=Capital) Both the Company and the Bank met all regulatory capital adequacy requirements, including the capital conservation buffer, as of June 30, 2025, and December 31, 2024. Management believes they continue to be "well capitalized" - The Company and the Bank met all capital adequacy requirements, including the capital conservation buffer, at June 30, 2025, and December 31, 2024[148](index=148&type=chunk) - Banking organizations are required to maintain a capital conservation buffer of **2.5%** to pay dividends and make other capital distributions without restriction[148](index=148&type=chunk) - Management believes the Bank exceeded its minimum capital requirements and was categorized as "well capitalized"[148](index=148&type=chunk) [Dividends](index=39&type=section&id=Dividends) The Company paid a quarterly cash dividend of $0.21 per share in Q2 2025. The ability to pay dividends is subject to maintaining adequate regulatory capital and is limited by the requirement to pay interest on subordinated debentures before common stock dividends - A quarterly cash dividend of **$0.21 per share** was paid during the quarter ended June 30, 2025[149](index=149&type=chunk) - The payment of dividends is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations[150](index=150&type=chunk) - Interest payments on subordinated debentures must be paid before dividends on capital stock, with the right to defer interest for up to **20 consecutive quarters**[151](index=151&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Company is exposed to interest rate risk, which is managed through its Asset/Liability Management Committee using earnings simulation models and interest sensitivity analyses. Simulations indicate potential negative impacts on net interest income from rising interest rates (e.g., -11.8% for a 300 basis point rise) and smaller negative impacts from falling rates - Interest rate risk is defined as the exposure of net interest income and fair value of financial instruments to movements in interest rates[152](index=152&type=chunk) - The Asset/Liability Management Committee monitors the interest rate sensitivity of the balance sheet using earnings simulation models and interest sensitivity analyses[153](index=153&type=chunk) | Scenario (1-year horizon) | June 30, 2025 Dollar Change in Net Interest Income (in thousands) | June 30, 2025 Percent Change in Net Interest Income | | :------------------------ | :-------------------------------------------------------------- | :-------------------------------------------------- | | 300 basis point rising | $(6,204) | (11.8)% | | 200 basis point rising | $(4,190) | (7.9)% | | 100 basis point rising | $(2,174) | (4.1)% | | 100 basis point falling | $38 | 0.1% | | 200 basis point falling | $(1,007) | (1.9)% | | 300 basis point falling | $(1,410) | (2.7)% | [ITEM 4. CONTROLS AND PROCEDURES](index=42&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the quarter - The Company's disclosure controls and procedures were effective as of June 30, 2025[158](index=158&type=chunk) - No changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025, materially affected or are reasonably likely to materially affect internal control over financial reporting[159](index=159&type=chunk) [SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995](index=41&type=section&id=SAFE%20HARBOR%20STATEMENT%20UNDER%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995) This section provides a safe harbor statement for forward-looking statements, identifying them by specific terminology and noting that actual results may differ materially due to various factors. It advises against undue reliance on such statements and refers to the 10-K for additional risk factors - The document contains forward-looking statements, generally identifiable by words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions[155](index=155&type=chunk) - The ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and various factors could have a material adverse effect on operations and future prospects[156](index=156&type=chunk) - Undue reliance should not be placed on forward-looking statements, and additional information concerning business risks is included in the Company's Annual Report on Form 10-K[156](index=156&type=chunk) [PART II – OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=43&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) There are no material pending legal proceedings against the Company or its subsidiaries, other than routine litigation incidental to their businesses - There are no material pending legal proceedings to which the Company or its subsidiaries is a party or which any of their property is subject, other than ordinary routine litigation incidental to their respective businesses[162](index=162&type=chunk) [ITEM 1A. RISK FACTORS](index=43&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the risk factors set forth under Part I, Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[163](index=163&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=43&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The Company did not purchase any of its equity securities during the quarter ended June 30, 2025. As of that date, 157,456 shares remained available for repurchase under the March 2020 Repurchase Program | Period | Total number of shares purchased | Average price paid per share | Maximum number of shares that may yet be purchased under the plans | | :---------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------------------- | | April 1-30, 2025 | - | $- | 157,456 | | May 1-31, 2025 | - | $- | 157,456 | | June 1-30, 2025 | - | $- | 157,456 | | Total | - | $- | 157,456 | - As of June 30, 2025, there were **157,456 shares** remaining available for repurchase under the March 2020 Repurchase Program[164](index=164&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=43&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported for the period - No defaults upon senior securities[165](index=165&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=43&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the Company - Not applicable[166](index=166&type=chunk) [ITEM 5. OTHER INFORMATION](index=43&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - During the quarter ended June 30, 2025, none of the Company's directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement[167](index=167&type=chunk) [ITEM 6. EXHIBITS](index=44&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including corporate organizational documents, certifications from the CEO and CFO, and interactive data files in Inline XBRL format - Exhibits include Amended and Restated Certificate of Incorporation, Bylaws, CEO/CFO certifications (Rule 13a-14(a)/15d-14(a) and 18 U.S.C. Section 1350), and Interactive Data Files (Inline XBRL)[168](index=168&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) The report was duly signed on August 13, 2025, by Abigail M. Wendel, President and Chief Executive Officer, and Mark A. Herpich, Vice President, Secretary, Treasurer, and Chief Financial Officer - The report was signed by Abigail M. Wendel, President and Chief Executive Officer, and Mark A. Herpich, Vice President, Secretary, Treasurer, and Chief Financial Officer, on August 13, 2025[170](index=170&type=chunk)

Total revenues were driven largely by robust net interest income. Net interest income rose 24.7% year over year to $13.7 million and improved 4.3% sequentially. Return on average assets stood at 1.11%, while return on average equity came in at 12.25%, both up from the prior-year quarter. Net Interest & Non-Interest Metrics Shares of Landmark Bancorp, Inc. (LARK) have declined 3.8% since reporting results for the second quarter of 2025. This compares with the S&P 500 index's 0.6% growth over the same time fr ...

Financial Data and Key Metrics Changes - Net income for the second quarter totaled $4.4 million, an increase from $3 million in the same period last year, reflecting increased net interest income and controlled expenses [4] - Diluted earnings per share rose to $0.75, a 56% increase year-over-year [4] - Return on average assets was 1.11% and return on average equity was 12.25% [4] - Efficiency ratio improved to 62.8% compared to 67.9% in the second quarter of the previous year [12] Business Line Data and Key Metrics Changes - Total gross loans increased by $42.9 million or 16% on an annualized basis, reaching over $1.1 billion [5][13] - Net interest income grew by 4.3% compared to the previous quarter, totaling $13.7 million [8] - Noninterest income totaled $3.6 million, an increase of $268,000 compared to the prior quarter [11] Market Data and Key Metrics Changes - Total deposits decreased by $61.9 million on a linked quarter basis but increased by $23.4 million or 1.9% year-over-year [13] - The average interest rate on interest-bearing deposits decreased by three basis points to 2.14% [10] - The unemployment rate in Kansas remained stable at 3.8% as of June 30 [19] Company Strategy and Development Direction - The company is focused on maintaining solid credit quality and enhancing customer relationships while growing lending and fee businesses across all markets [21] - There are initiatives planned for the second half of the year to gather more deposits through the branch network [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being adequately provisioned for credit losses, with expectations for nonperforming loans to trend positively in the upcoming quarters [27][28] - The company is optimistic about loan demand and aims to support growth with a high-quality deposit base [34] Other Important Information - The allowance for credit losses was $13.8 million, representing 1.23% of total loans [5][11] - A cash dividend of 21¢ per share was declared, marking the ninety-sixth consecutive quarterly cash dividend since the company's formation [6] Q&A Session Summary Question: Commentary on loan provisions and nonaccruals - Management believes they are adequately provisioned, with the $1 million provision primarily due to loan growth, and expects trends in nonperforming loans to improve [27][28] Question: Insights on deposit decline and Federal Home Loan Bank borrowings - Management noted that the decline in deposits was likely seasonal and emphasized strategies to enhance deposit gathering through their branch network [30][31]

Core Viewpoint - Landmark Bancorp reported a net income of $4.4 million and diluted EPS of $0.75 for Q2 2025, showing strong year-over-year growth but a slight decline from Q1 2025 highs. The bank's loan growth and net interest income remained robust, although deposit trends and asset quality require close monitoring [1][2]. Financial Performance - EPS (GAAP) for Q2 2025 was $0.75, up 44.2% year-over-year from $0.52 in Q2 2024, but down from $0.81 in Q1 2025 [2]. - Net interest income increased to $13.7 million, a 24.7% rise from $10.97 million in Q2 2024 and up from $13.1 million in Q1 2025 [2][5]. - Net earnings were $4.4 million, a 46.1% increase from $3.0 million in Q2 2024, but a slight decrease from $4.7 million in Q1 2025 [2]. - Return on average assets was 1.11%, up 0.33 percentage points year-over-year [2]. Business Overview - Landmark Bancorp operates as a community-oriented bank, providing a range of loan products including residential, commercial real estate, and agricultural loans across Kansas and the Kansas City metro area [3][4]. Loan Portfolio and Growth - The loan portfolio expanded by $42.9 million during the quarter, with significant growth in residential real estate loans ($21.5 million), commercial real estate loans ($10.9 million), and commercial loans ($13.4 million) [6]. - Total gross loans reached $1.12 billion, with strong demand noted in commercial and mortgage segments [6]. Deposit Trends - Deposit balances were $1.27 billion, reflecting a decline of $61.9 million from the previous quarter but an increase of $23.4 million year-over-year [7]. - The loan-to-deposit ratio increased to 86.6%, up from 79.5% in Q1 2025, as total borrowings rose by $105.9 million to support loan growth [7]. Asset Quality - Non-performing loans grew to $17.0 million, or 1.52% of gross loans, up from 1.24% in Q1 2025, although early-stage delinquencies improved [9]. - A provision for credit losses of $1.0 million was recorded, reflecting growth in the loan book and increased reserves for non-accrual loans [9]. Capital Strength - Equity to assets increased to 9.13%, up from 9.04% in the previous quarter, and tangible book value per share improved to $19.66 [10]. - The company declared a quarterly dividend of $0.21 per share, up from $0.20 in Q2 2024, indicating a commitment to shareholder returns [10]. Future Outlook - Management did not provide formal financial guidance but emphasized a focus on growing higher-yielding loans, maintaining expense control, and upholding credit discipline [11]. - Ongoing monitoring of deposit trends, asset quality, and competitive landscape in regional markets is expected [12].

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of Landmark Bancorp, Inc.'s financial performance for Q2 and H1 2025, highlighting key metrics and management's strategic commentary [Second Quarter 2025 Financial Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Overview) Landmark Bancorp, Inc. reported diluted earnings per share of $0.75 for Q2 2025, a decrease from the prior quarter but a significant increase compared to Q2 2024, with substantial year-over-year net earnings growth and improved profitability ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------- | :------ | :------ | :------ | | Diluted EPS ($) | $0.75 | $0.81 | $0.52 | | Net Earnings ($) | $4.4M | $4.7M | $3.0M | | Return on Average Assets (%) | 1.11% | | | | Return on Average Equity (%) | 12.25% | | | | Efficiency Ratio (%) | 62.8% | | | [First Six Months 2025 Financial Performance Overview](index=1&type=section&id=First%20Six%20Months%202025%20Financial%20Performance%20Overview) For the first six months of 2025, Landmark Bancorp, Inc. achieved strong growth in diluted earnings per share and net earnings compared to the same period in 2024, alongside improved returns on average assets and equity | Metric | H1 2025 | H1 2024 | | :----------------------- | :------ | :------ | | Diluted EPS ($) | $1.56 | $1.01 | | Net Earnings ($) | $9.1M | $5.8M | | Return on Average Assets (%) | 1.16% | | | Return on Average Equity (%) | 12.96% | | | Efficiency Ratio (%) | 63.4% | | [Management Commentary and Strategic Highlights](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Highlights) CEO Abby Wendel highlighted continued strong net earnings driven by robust loan growth, particularly in commercial, commercial real estate, and residential mortgage loans, alongside significant net interest income growth and net interest margin expansion, while maintaining solid credit quality and controlled expenses, and declaring a cash dividend - **Strong net earnings** driven by growth in loans and net interest income[5](index=5&type=chunk) - Total gross loans increased by **$42.9 million**, an annualized increase of **16.0%**[5](index=5&type=chunk) - Net interest income grew **24.7%** over the previous year, and net interest margin expanded to **3.83%**[5](index=5&type=chunk) - A cash dividend of **$0.21 per share** was declared[5](index=5&type=chunk) [Key Performance Indicators](index=1&type=section&id=Key%20Performance%20Indicators) Key performance indicators for Q2 2025 demonstrated substantial year-over-year improvements, including significant loan growth, an expanded net interest margin, and increased stockholders' equity, despite a quarterly decline in total deposits | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | | Total Gross Loans (QoQ Ann.) (%) | +16.0% | | | | Net Interest Margin (%) | 3.83% | 3.76% | 3.25% | | Net Interest Income (YoY) (%) | +24.7% | | | | Deposits (YoY) (%) | +1.9% | | | | Total Assets (QoQ Ann.) (%) | +11.9% | | | | Net Charge-offs ($) | $40K | | | | Stockholders' Equity ($) | +$5.7M | | | | Equity to Assets Ratio (%) | 9.13% | | | [Detailed Income Statement Analysis](index=2&type=section&id=Detailed%20Income%20Statement%20Analysis) This section analyzes the components of the income statement, including net interest income, non-interest income, non-interest expense, and income tax expense [Net Interest Income Analysis](index=2&type=section&id=Net%20Interest%20Income%20Analysis) Net interest income increased both sequentially and year-over-year, primarily driven by higher interest income on loans due to increased average balances and yields, coupled with lower interest expense on deposits, leading to a net interest margin expansion to 3.83% | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------- | :------ | :------ | :------ | | Net Interest Income ($) | $13.7M | $13.1M | $11.0M | | QoQ Change (%) | +4.3% | | | | YoY Change (%) | +24.7% | | | | Net Interest Margin (%) | 3.83% | 3.76% | 3.25% | - Increase driven by higher interest income on loans (**$791K increase to $17.2M**) and lower interest expense on deposits (**$92K decrease**)[9](index=9&type=chunk) [Non-Interest Income Analysis](index=2&type=section&id=Non-Interest%20Income%20Analysis) Non-interest income for Q2 2025 increased from the prior quarter, mainly attributable to higher gains on sales of loans and an increase in fees and service charges | Metric | Q2 2025 | Q1 2025 | | :-------------------------- | :------ | :------ | | Total Non-Interest Income ($) | $3.6M | $3.4M | | Gains on Sales of Loans ($) | +$178K | | | Fees and Service Charges ($) | +$88K | | [Non-Interest Expense Analysis](index=2&type=section&id=Non-Interest%20Expense%20Analysis) Non-interest expense saw a modest increase quarter-over-quarter, primarily due to higher data processing expenses and other non-interest expenses, partially mitigated by a reduction in professional fees | Metric | Q2 2025 | Q1 2025 | | :-------------------- | :------ | :------ | | Total Non-Interest Expense ($) | $11.0M | $10.8M | | QoQ Change (%) | +1.9% | | | Data Processing Expense ($) | +$233K | | | Other Non-Interest Expense ($) | +$101K | | - Increase in data processing expense due to additional services and account growth; increase in other non-interest expense due to higher losses at captive insurance subsidiary[11](index=11&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense) Income tax expense slightly decreased in Q2 2025 compared to Q1 2025, with the effective tax rate remaining stable | Metric | Q2 2025 | Q1 2025 | | :---------------- | :------ | :------ | | Income Tax Expense ($) | $944K | $1.0M | | Effective Tax Rate (%) | 17.7% | 17.8% | [Balance Sheet and Asset Quality Review](index=2&type=section&id=Balance%20Sheet%20and%20Asset%20Quality%20Review) This section reviews the company's balance sheet components, including loans, investment securities, deposits, borrowings, stockholders' equity, and credit quality metrics [Loans and Investment Securities](index=2&type=section&id=Loans%20and%20Investment%20Securities) Gross loans reached $1.1 billion, showing significant annualized growth driven by increases in residential real estate, commercial, and commercial real estate loans, while investment securities available-for-sale decreased slightly, and pre-tax unrealized net losses on the portfolio improved | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Gross Loans ($) | $1.1B | $1.07B | | Loan Growth (QoQ annualized) (%) | +16.0% | | | Investment Securities Available-for-Sale ($) | $352.4M | $356.0M | | Pre-tax Unrealized Net Losses (Inv. Sec.) ($) | $13.9M | $17.1M | - Loan growth primarily comprised of one-to-four family residential real estate (**+$21.5M**), commercial (**+$13.4M**), and commercial real estate (**+$10.9M**)[13](index=13&type=chunk) [Deposits and Borrowings](index=2&type=section&id=Deposits%20and%20Borrowings) Period-end deposit balances decreased, primarily due to declines in money market, checking, and non-interest-bearing demand deposits, partially offset by an increase in certificates of deposit, while total borrowings increased to fund asset growth and compensate for lower deposit balances, resulting in a higher loan-to-deposits ratio | Metric | June 30, 2025 | March 31, 2025 | | :-------------------- | :------------ | :------------- | | Total Deposits ($) | $1.3B | $1.34B | | Total Borrowings ($) | $155.1M | $48.8M | | Loan to Deposits Ratio (%) | 86.6% | 79.5% | - Decline in deposits driven by decreases in money market and checking accounts (**-$50.5M**) and non-interest-bearing demand deposits (**-$16.5M**)[14](index=14&type=chunk) - Total borrowings increased **$105.9 million** to fund asset growth and offset lower deposit balances[14](index=14&type=chunk) [Stockholders' Equity](index=2&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased, primarily driven by a reduction in accumulated other comprehensive losses (due to lower unrealized net losses on investment securities) and net earnings during the quarter, with the ratio of equity to total assets also improving | Metric | June 30, 2025 | March 31, 2025 | | :----------------------- | :------------ | :------------- | | Stockholders' Equity ($) | $148.4M | $142.7M | | Book Value per Share ($) | $25.66 | $24.69 | | Equity to Total Assets Ratio (%) | 9.13% | 9.04% | - Increase in stockholders' equity mainly due to a decrease in accumulated other comprehensive losses and net earnings[15](index=15&type=chunk) [Credit Quality and Non-Performing Assets](index=2&type=section&id=Credit%20Quality%20and%20Non-Performing%20Assets) The allowance for credit losses increased, and a provision for credit losses was recorded in Q2 2025, while non-performing loans and total non-performing assets increased quarter-over-quarter, and loans 30-89 days delinquent decreased | Metric | June 30, 2025 | March 31, 2025 | Q2 2025 | Q1 2025 | | :------------------------------------ | :------------ | :------------- | :------ | :------ | | Allowance for Credit Losses ($) | $13.8M | $12.8M | | | | Allowance for Credit Losses (% Gross Loans) | 1.23% | 1.19% | | | | Net Loan Charge-offs ($) | | | $40K | $23K | | Provision for Credit Losses on Loans ($) | | | $1.0M | $0 | | Non-performing Loans ($) | $17.0M | $13.3M | | | | Non-performing Loans (% Gross Loans) | 1.52% | 1.24% | | | | Loans 30-89 Days Delinquent ($) | $4.3M | $10.0M | | | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides background information on Landmark Bancorp, Inc. and includes a special note regarding forward-looking statements [About Landmark Bancorp, Inc.](index=3&type=section&id=About%20Landmark%20Bancorp%2C%20Inc.) Landmark Bancorp, Inc. is the holding company for Landmark National Bank, a community banking organization listed on the Nasdaq Global Market under the symbol "LARK," headquartered in Manhattan, Kansas, providing financial and banking services through 29 locations across 23 communities in Kansas - Landmark Bancorp, Inc. is the holding company for Landmark National Bank, listed on Nasdaq (**LARK**)[18](index=18&type=chunk) - Operates **29 locations** in **23 communities** across Kansas[18](index=18&type=chunk) [Special Note Concerning Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Concerning%20Forward-Looking%20Statements) This section serves as a disclaimer for forward-looking statements, highlighting that actual results may differ materially due to various factors, including economic conditions, interest rate fluctuations, increased competition, technological changes, regulatory policies, and credit risk management - Press release contains forward-looking statements subject to beliefs, expectations, and assumptions of management[19](index=19&type=chunk) - Actual results could differ materially due to factors such as economic conditions, interest rates, competition, technological changes, and regulatory actions[19](index=19&type=chunk) [Financial Statements and Supplementary Data](index=5&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section presents the unaudited consolidated financial statements, including balance sheets, statements of earnings, select ratios, and non-GAAP reconciliations [Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) This section presents the unaudited consolidated balance sheets of Landmark Bancorp, Inc. and its subsidiaries, providing a detailed breakdown of assets, liabilities, and stockholders' equity as of June 30, 2025, and comparative periods | Metric (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Total Assets (in thousands $) | $1,624,865 | $1,578,589 | $1,560,754 | | Total Gross Loans (in thousands $) | $1,117,784 | $1,074,924 | $980,575 | | Total Deposits (in thousands $) | $1,273,901 | $1,335,822 | $1,250,482 | | Total Liabilities (in thousands $) | $1,476,489 | $1,435,938 | $1,432,500 | | Total Stockholders' Equity (in thousands $) | $148,376 | $142,651 | $128,254 | [Consolidated Statements of Earnings (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Earnings%20(Unaudited)) This section provides the unaudited consolidated statements of earnings, detailing interest income, interest expense, net interest income, non-interest income, non-interest expense, and net earnings for the three and six months ended June 30, 2025, and comparative periods | Metric (in thousands, except per share) | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total Interest Income (in thousands $) | $20,098 | $19,342 | $18,180 | $39,440 | $35,925 | | Total Interest Expense (in thousands $) | $6,415 | $6,223 | $7,206 | $12,638 | $14,204 | | Net Interest Income (in thousands $) | $13,683 | $13,119 | $10,974 | $26,802 | $21,721 | | Total Non-Interest Income (in thousands $) | $3,626 | $3,358 | $3,720 | $6,984 | $7,120 | | Total Non-Interest Expense (in thousands $) | $10,961 | $10,761 | $11,095 | $21,722 | $21,646 | | Net Earnings (in thousands $) | $4,404 | $4,701 | $3,012 | $9,105 | $5,790 | | Diluted EPS ($) | $0.75 | $0.81 | $0.52 | $1.56 | $1.01 | | Dividends per Share ($) | $0.21 | $0.21 | $0.20 | $0.42 | $0.40 | [Select Ratios and Other Data (Unaudited)](index=8&type=section&id=Select%20Ratios%20and%20Other%20Data%20(Unaudited)) This section provides a comprehensive overview of the company's financial health and operational efficiency through key performance, capital, and asset quality ratios, along with average balances and yield/cost data for various periods | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Return on Average Assets (%) | 1.11% | 1.21% | 0.78% | 1.16% | 0.75% | | Return on Average Equity (%) | 12.25% | 13.71% | 9.72% | 12.96% | 9.30% | | Net Interest Margin (%) | 3.83% | 3.76% | 3.21% | 3.80% | 3.16% | | Efficiency Ratio (%) | 62.8% | 64.1% | 67.9% | 63.4% | 70.0% | | Equity to Total Assets (%) | 9.13% | 9.04% | 8.22% | | | | Book Value per Share ($) | $25.66 | $24.69 | $22.33 | | | | Allowance for Credit Losses to Gross Loans (%) | 1.23% | 1.19% | 1.11% | | | | Total Non-Performing Loans to Gross Loans (%) | 1.52% | 1.24% | 0.51% | | | | Net Loan Charge-offs to Average Loans (%) | 0.01% | 0.01% | -0.02% | 0.01% | -0.01% | [Non-GAAP Financial Measures Reconciliation (Unaudited)](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation%20(Unaudited)) This section provides detailed reconciliations of non-GAAP financial measures, including adjusted non-interest expense, adjusted non-interest income, tangible equity, and tangible assets, to their most comparable GAAP equivalents for transparency and comparability | Non-GAAP Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Adjusted Non-Interest Expense (in thousands $) | $10,859 | $10,559 | $9,984 | $21,418 | $20,186 | | Adjusted Non-Interest Income (in thousands $) | $3,617 | $3,360 | $3,720 | $6,977 | $7,129 | | Efficiency Ratio (Adjusted) (%) | 62.8% | 64.1% | 67.9% | 63.4% | 70.0% | | Tangible Equity (in thousands $) | $113,724 | $107,848 | $92,977 | | | | Tangible Assets (in thousands $) | $1,590,213 | $1,543,786 | $1,525,477 | | | | Tangible Equity to Tangible Assets (%) | 7.15% | 6.99% | 6.09% | | | | Tangible Book Value per Share ($) | $19.66 | $18.66 | $16.19 | | |

Core Viewpoint - Landmark Bancorp, Inc. reported strong financial performance for the second quarter of 2025, with significant growth in net earnings driven by increased loan demand and net interest income. Financial Performance - Diluted earnings per share for Q2 2025 were $0.75, down from $0.81 in Q1 2025 but up from $0.52 in Q2 2024 [1] - Net earnings for Q2 2025 totaled $4.4 million, compared to $4.7 million in the prior quarter and $3.0 million in the same quarter of the previous year [1] - For the first six months of 2025, diluted earnings per share were $1.56, up from $1.01 during the same period in 2024 [2] Key Ratios - Return on average assets for Q2 2025 was 1.11%, and return on average equity was 12.25% [1][2] - Efficiency ratio for Q2 2025 was 62.8%, indicating improved operational efficiency [1][2] Loan and Deposit Growth - Total gross loans increased by $42.9 million, or 16.0% annualized, in Q2 2025 [4][6] - Despite a decrease in total deposits in Q2 2025, year-over-year growth of $23.4 million, or 1.9%, was sustained [4][6] Net Interest Income - Net interest income for Q2 2025 was $13.7 million, an increase of $564,000, or 4.3%, from the previous quarter and an increase of $2.7 million, or 24.7%, from the same quarter of the prior year [6][7] - The net interest margin improved to 3.83% in Q2 2025, up from 3.76% in Q1 2025 and 3.25% in Q2 2024 [6][7] Non-Interest Income and Expenses - Non-interest income for Q2 2025 totaled $3.6 million, an increase of $268,000 from the previous quarter [8] - Non-interest expense for Q2 2025 was $11.0 million, an increase of $200,000, or 1.9%, compared to the prior quarter [9] Credit Quality - Credit quality remained stable with minimal net charge-offs totaling $40,000 in Q2 2025 [6][14] - A provision for credit losses of $1.0 million was recorded in Q2 2025 to reflect loan growth and higher reserves [4][15] Dividend Declaration - The Board of Directors declared a cash dividend of $0.21 per share, payable on August 27, 2025 [4]

Core Viewpoint - Landmark Bancorp, Inc. reported strong financial performance for the second quarter of 2025, with significant growth in net earnings driven by increased loan demand and net interest income, despite a decrease in total deposits [4][6]. Financial Performance - Diluted earnings per share for Q2 2025 were $0.75, down from $0.81 in Q1 2025 but up from $0.52 in Q2 2024 [1]. - Net earnings for Q2 2025 totaled $4.4 million, compared to $4.7 million in the previous quarter and $3.0 million in the same quarter of the prior year [1]. - For the first six months of 2025, diluted earnings per share were $1.56, up from $1.01 during the same period in 2024 [2]. Key Ratios - Return on average assets for Q2 2025 was 1.11%, and return on average equity was 12.25% [1][28]. - The efficiency ratio improved to 62.8% in Q2 2025 from 64.1% in Q1 2025 [28]. Loan and Deposit Growth - Total gross loans increased by $42.9 million, or 16.0% annualized, in Q2 2025 [4][7]. - Despite a decrease in total deposits of $61.9 million from the previous quarter, year-over-year growth in deposits was $23.4 million, or 1.9% [4][13]. Net Interest Income - Net interest income for Q2 2025 was $13.7 million, an increase of $564,000, or 4.3%, from the previous quarter and an increase of $2.7 million, or 24.7%, from the same quarter of the prior year [6][25]. - The net interest margin increased to 3.83% in Q2 2025 from 3.76% in Q1 2025 [7][28]. Non-Interest Income and Expenses - Non-interest income for Q2 2025 totaled $3.6 million, an increase of $268,000 from the previous quarter [9]. - Non-interest expenses were $11.0 million, an increase of $200,000, or 1.9%, compared to the prior quarter [10]. Credit Quality - Credit quality remained stable with minimal net charge-offs totaling $40,000 in Q2 2025 [7][15]. - The allowance for credit losses was $13.8 million, or 1.23% of total gross loans, as of June 30, 2025 [15]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.21 per share, payable on August 27, 2025 [4].