Core Points - Landmark Bancorp, Inc. will release its second quarter 2025 earnings after market close on July 24, 2025 [1] - A conference call to discuss the earnings results is scheduled for July 25, 2025, at 10:00 am (CT) [1] - Investors can access the earnings call by dialing (833) 470-1428 with access code 703723 [1] Company Overview - Landmark Bancorp, Inc. is the holding company for Landmark National Bank, listed on NASDAQ under the symbol "LARK" [3] - The company is headquartered in Manhattan, Kansas, and operates as a community banking organization [3] - Landmark National Bank has 29 locations across 23 communities in Kansas [3]

Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - LPL Financial Holdings Inc (LPLA) has an RSI of 28.5, with a stock price decline of approximately 7% over the past month, reaching a 52-week low of $187.19 [7] - Affinity Bancshares Inc (AFBI) has an RSI of 24.4, with a stock price decrease of around 15% over the past six months, hitting a 52-week low of $17.00 [7] - Landmark Bancorp Inc (LARK) has an RSI of 21.9, with a stock price drop of about 16% over the past month, reaching a 52-week low of $17.86 [7] Group 2: Company Performance - LPL Financial's shares closed at $354.10 after a 5.4% decline [7] - Affinity Bancshares' shares closed at $18.50 [7] - Landmark Bancorp reported a first-quarter EPS of 81 cents, an increase from 49 cents a year ago, and its shares closed at $24.13 after a 0.4% gain [7]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial information, including statements and management's analysis [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, showing increased net earnings driven by higher net interest income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and net loans increased slightly, while stockholders' equity grew due to net earnings and comprehensive income Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,578,589** | **$1,574,142** | | Loans, net | $1,061,696 | $1,039,221 | | Investment securities available-for-sale | $355,992 | $372,512 | | **Total Liabilities** | **$1,435,938** | **$1,437,927** | | Total deposits | $1,335,822 | $1,328,766 | | **Total Stockholders' Equity** | **$142,651** | **$136,215** | [Consolidated Statements of Earnings](index=5&type=section&id=Consolidated%20Statements%20of%20Earnings) Net earnings significantly increased to $4.7 million in Q1 2025, driven by higher net interest income and no provision for credit losses Q1 Earnings Comparison (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $13,119 | $10,747 | | Provision for credit losses | $0 | $300 | | **Net Earnings** | **$4,701** | **$2,778** | | Diluted Earnings Per Share | $0.81 | $0.48 | | Dividends Per Share | $0.21 | $0.20 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $1.6 million, with net cash provided by operating activities offsetting investing and financing uses Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,018 | $2,851 | | Net cash used in investing activities | ($424) | ($2,670) | | Net cash used in financing activities | ($5,988) | ($10,814) | | **Net increase (decrease) in cash** | **$1,606** | **($10,633)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed disclosures cover investment securities, loan portfolio, regulatory capital, and other key financial statement components - As of March 31, 2025, the investment portfolio included **$356.0 million** in available-for-sale securities and **$3.7 million** in held-to-maturity securities, with most unrealized losses deemed temporary[27](index=27&type=chunk)[28](index=28&type=chunk) - Gross loans increased to **$1.075 billion** at March 31, 2025, from **$1.052 billion** at year-end 2024, with the allowance for credit losses stable at **$12.8 million** and non-accrual loans at **1.24%** of gross loans[34](index=34&type=chunk)[37](index=37&type=chunk) - The Company and the Bank met all regulatory capital requirements as of March 31, 2025, with the Bank categorized as 'well capitalized'[81](index=81&type=chunk)[85](index=85&type=chunk)[89](index=89&type=chunk) [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) Management discusses Q1 2025 financial results, highlighting increased net earnings, expanded net interest margin, strong asset quality, and robust liquidity Key Performance Ratios (Annualized) | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 1.21% | 0.72% | | Return on average equity | 13.71% | 8.88% | | Net interest margin (tax-equivalent) | 3.76% | 3.12% | - Net interest income increased by **$2.4 million (22.1%)** year-over-year, driven by higher loan interest income and lower total interest expense[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - Asset quality remained strong, with the allowance for credit losses at **$12.8 million (1.19% of gross loans)** and non-accrual loans stable at **1.24%**[114](index=114&type=chunk)[116](index=116&type=chunk) - Liquidity is strong, with **$381.8 million** in liquid assets and **$203.2 million** in FHLB borrowing capacity as of March 31, 2025[125](index=125&type=chunk)[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with simulations showing liability sensitivity to rising rates Net Interest Income Sensitivity Analysis (as of March 31, 2025) | Scenario | Percent Change in Net Interest Income | | :--- | :--- | | +300 basis points | (9.5)% | | +200 basis points | (6.7)% | | +100 basis points | (3.9)% | | -100 basis points | (0.3)% | - The company's operations largely depend on net interest income and its ability to manage interest rate risk from asset and liability repricing mismatches[133](index=133&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during Q1 2025 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[139](index=139&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[140](index=140&type=chunk) [PART II – OTHER INFORMATION](index=40&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond ordinary routine litigation incidental to its business - There are no material pending legal proceedings against the Company or its subsidiaries, other than ordinary routine litigation[142](index=142&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors previously disclosed in the Company's 2024 Annual Report on Form 10-K - No material changes have occurred in the risk factors from those disclosed in the Company's 2024 Form 10-K[143](index=143&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any equity securities in Q1 2025, with 157,456 shares remaining available for repurchase Share Repurchase Activity (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2025 | 0 | $ - | | Feb 2025 | 0 | $ - | | Mar 2025 | 0 | $ - | | **Total** | **0** | **$ -** | - As of March 31, 2025, **157,456 shares** were still available for repurchase under the March 2020 Repurchase Program[144](index=144&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended March 31, 2025[147](index=147&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications and interactive data files - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sarbanes-Oxley Act rules[148](index=148&type=chunk) - Interactive data files (Inline XBRL) are included as Exhibit 101, as required by SEC regulations[148](index=148&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q1 2025 totaled $4,700,000, a significant increase from $2,800,000 in the same period last year, representing a growth of 68% [5][9] - Diluted earnings per share rose to $0.81, marking a 69% increase year-over-year [5] - Return on average assets was 1.21% and return on average equity was 13.71% [5] - Efficiency ratio improved to 64.1% in Q1 2025 [5] Business Line Data and Key Metrics Changes - Total gross loans increased by $22,600,000 or 8.7% annualized, reaching nearly $1,100,000,000 [6][13] - Loan growth was primarily driven by commercial real estate and construction loans, which increased by $14,400,000 and $3,300,000 respectively [14] - Non-interest income totaled $3,400,000, a slight decline compared to the previous quarter [12] Market Data and Key Metrics Changes - Deposit balances increased by $7,100,000, totaling $1,300,000,000 at the end of Q1 2025 [15] - Average interest-bearing deposits grew by $34,800,000 during the quarter [16] - The loan-to-deposit ratio stood at 79.5%, indicating sufficient liquidity for continued loan growth [16] Company Strategy and Development Direction - The company remains focused on serving business owners across Kansas, emphasizing relationship banking [6] - There is a commitment to maintaining solid credit quality amid economic uncertainties [24] - The company aims to strengthen existing customer relationships and grow lending and fee businesses across all markets [25] Management's Comments on Operating Environment and Future Outlook - Management noted a general level of uncertainty among customers but expressed confidence that uncertainties will resolve over time [21] - The economic landscape in Kansas is described as healthy, with an unemployment rate of 3.8% [21] - The company is well-positioned for future growth due to its operational success and high-quality banking products [25] Other Important Information - The Board of Directors declared a cash dividend of $0.21 per share, marking the 95th consecutive quarterly cash dividend since the company's formation [7] - Stockholders' equity increased by $6,400,000 to $142,700,000, with a book value of $24.69 per share [16][17] Q&A Session Summary Question: No questions were asked during the Q&A session - The operator indicated that there were no questions at this time, and the call was handed back to management for closing comments [26]

Financial Data and Key Metrics Changes - Net income for Q1 2025 totaled $4,700,000, a significant increase from $2,800,000 in the same period last year, representing a growth of 68% [4][8] - Diluted earnings per share rose to $0.81, marking a 69% increase year-over-year [4] - Return on average assets was 1.21% and return on average equity was 13.71% [4] - Efficiency ratio improved to 64.1% in Q1 2025 [4] Business Line Data and Key Metrics Changes - Total gross loans increased by $22,600,000 or 8.7% on an annualized basis, reaching nearly $1,100,000,000 [5][12] - Loan growth was primarily driven by commercial real estate and construction loans, which increased by $14,400,000 and $3,300,000 respectively [13][17] - Non-interest income totaled $3,400,000, a slight decline compared to the previous quarter [11] Market Data and Key Metrics Changes - Deposits totaled $1,300,000,000 at the end of Q1 2025, with an increase of $7,100,000 during the quarter [13] - Interest checking and money market deposits declined by $23,500,000, while non-interest checking increased by $16,900,000 [14] Company Strategy and Development Direction - The company remains focused on serving business owners across Kansas, emphasizing relationship banking [5] - There is a commitment to maintaining solid credit quality amid economic uncertainties [21] - The company aims to strengthen existing customer relationships and grow lending and fee businesses across all markets [21] Management Comments on Operating Environment and Future Outlook - Management noted a general level of uncertainty among customers but expressed confidence that uncertainties will resolve over time [20] - The economic landscape in Kansas is described as healthy, with an unemployment rate of 3.8% [19] - The company is well-positioned for future growth due to its operational success and high-quality banking products [21] Other Important Information - The Board of Directors declared a cash dividend of $0.21 per share, marking the 95th consecutive quarterly cash dividend since the company's formation [6] - The allowance for credit losses stood at $12,800,000, representing 1.19% of gross loans [11][19] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the call, leading to a prompt conclusion of the session [24]

[Performance Overview and Highlights](index=1&type=section&id=First%20Quarter%202025%20Performance%20Highlights) Landmark Bancorp reported strong Q1 2025 growth, with net earnings up 43.2% to $4.7 million, driven by net interest income and lower expenses Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Diluted Earnings Per Share (USD) | $0.81 | $0.57 | $0.48 | | Net Income (Millions USD) | $4.7 | $3.3 | $2.8 | | Return on Avg Assets (%) | 1.21% | 0.83% | 0.72% | | Return on Avg Equity (%) | 13.71% | 9.54% | 8.88% | | Efficiency Ratio (%) | 64.1% | 70.8% | 72.1% | - The Board of Directors declared a cash dividend of **$0.21 per share**, payable on June 4, 2025, to stockholders of record as of May 21, 2025[4](index=4&type=chunk) - Key drivers for the strong quarter included solid loan demand, particularly in commercial and residential real estate, leading to an annualized loan growth of **8.7%**[4](index=4&type=chunk) - Deposits also increased by **$7.1 million**, while other borrowed funds declined, improving the net interest margin[4](index=4&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) Q1 2025 financial performance showed a 5.8% sequential increase in net interest income and a $1.1 million reduction in non-interest expenses [Net Interest Income](index=1&type=section&id=Net%20Interest%20Income) Net interest income increased 5.8% to **$13.1 million** in Q1 2025, driven by loan growth and lower interest expenses, improving net interest margin to **3.76%** Net Interest Income and Margin | Metric | Q1 2025 | Q4 2024 | Change (Millions USD / bps) | | :--- | :--- | :--- | :--- | | Net Interest Income (Millions USD) | $13.1M | $12.4M | +$0.7M | | Net Interest Margin (%) | 3.76% | 3.51% | +25 bps | - The increase in net interest income was due to a **$440,000** rise in loan interest income and a combined **$330,000** decrease in interest expense on deposits and other borrowed funds compared to the prior quarter[6](index=6&type=chunk) - Average loan balances increased by **$38.4 million**, and the average tax-equivalent yield on the loan portfolio rose by **6 basis points** to **6.34%**[6](index=6&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income was **$3.4 million**, a slight decrease, as the absence of a **$1.0 million** Q4 2024 investment loss offset other income declines - A **$704,000** decline in bank-owned life insurance income (due to one-time benefits in Q4 2024) and a **$322,000** drop in fee income were the primary reasons for the decrease[9](index=9&type=chunk) - These declines were largely offset because a **$1.0 million** loss on the sale of investment securities in Q4 2024 was not repeated in Q1 2025 (Q1 loss was only **$2,000**)[9](index=9&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense decreased by **$1.1 million** to **$10.8 million** in Q1 2025, driven by 2024 branch closures and reduced professional fees - The primary drivers of the expense reduction were decreases of **$350,000** in other non-interest expense, **$298,000** in occupancy and equipment, and **$298,000** in professional fees[10](index=10&type=chunk) - Savings in occupancy and other expenses were related to branch closures in 2024, while the drop in professional fees was due to higher consulting costs for several initiatives in the prior quarter[10](index=10&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense%20%28Benefit%29) Q1 2025 income tax expense was **$1.0 million** with a **17.8%** effective tax rate, normalizing after a **$886,000** Q4 2024 tax benefit Income Tax Comparison | Period | Income Tax Expense (Benefit) (Thousands USD) | Effective Tax Rate (%) | | :--- | :--- | :--- | | Q1 2025 | $1.0 million | 17.8% | | Q4 2024 | ($886,000) | -37.0% | [Balance Sheet and Credit Quality](index=3&type=section&id=Balance%20Sheet%20and%20Credit%20Quality) As of March 31, 2025, the balance sheet showed healthy growth in gross loans and deposits, strengthened stockholders' equity, and robust credit quality with minimal charge-offs [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Highlights) Q1 2025 gross loans reached **$1.1 billion** (up **8.7%** annualized), deposits grew to **$1.3 billion**, and stockholders' equity increased to **$142.7 million** Key Balance Sheet Items (as of March 31, 2025) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Gross Loans (Billions USD) | $1.1 billion | $1.05 billion | | Total Deposits (Billions USD) | $1.3 billion | $1.3 billion | | Stockholders' Equity (Millions USD) | $142.7 million | $136.2 million | | Equity to Total Assets (%) | 9.04% | 8.65% | - Loan growth was primarily in commercial real estate (**+$14.4 million**), one-to-four family residential real estate (**+$3.4 million**), and construction/land loans (**+$3.3 million**)[12](index=12&type=chunk) - The increase in stockholders' equity was mainly due to net earnings and a decrease in accumulated other comprehensive losses (from **$15.8 million** to **$13.0 million**) as unrealized losses on investment securities declined[14](index=14&type=chunk)[20](index=20&type=chunk) [Credit Quality](index=3&type=section&id=Credit%20Quality) Q1 2025 credit quality remained strong, with ACL at **$12.8 million** (**1.19%** of loans), minimal net charge-offs of **$23,000**, and stable non-performing loans at **1.24%** Credit Quality Metrics | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Allowance for Credit Losses (Millions USD / % of loans) | $12.8M (1.19% of loans) | $12.8M (1.22% of loans) | | Net Loan Charge-offs (Thousands USD) | $23,000 | $219,000 | | Non-performing Loans (Millions USD / % of loans) | $13.3M (1.24% of loans) | $13.1M (1.25% of loans) | - No provision for credit losses on loans was recorded in Q1 2025, compared to a provision of **$1.5 million** in Q4 2024[15](index=15&type=chunk) [Financial Tables](index=5&type=section&id=Financial%20Tables) This section presents detailed unaudited financial statements, including Consolidated Balance Sheets, Statements of Earnings, Select Ratios, and Non-GAAP Financial Measures [Consolidated Balance Sheets](index=5&type=section&id=LANDMARK%20BANCORP%2C%20INC.%20AND%20SUBSIDIARIES%20Consolidated%20Balance%20Sheets%20%28unaudited%29) The Consolidated Balance Sheets present the company's financial position as of March 31, 2025, with total assets at **$1.579 billion** and equity at **$142.7 million** Balance Sheet Summary (March 31, 2025) | Category | Amount (Thousands USD) | | :--- | :--- | | Total Assets | $1,578,589 | | Total Liabilities | $1,435,938 | | Total Stockholders' Equity | $142,651 | [Consolidated Statements of Earnings](index=7&type=section&id=LANDMARK%20BANCORP%2C%20INC.%20AND%20SUBSIDIARIES%20Consolidated%20Statements%20of%20Earnings%20%28unaudited%29) The Consolidated Statements of Earnings detail Q1 2025 revenues, expenses, and profitability, with net earnings reaching **$4.7 million** Earnings Summary (Q1 2025) | Category | Amount (Thousands USD) | | :--- | :--- | | Net Interest Income | $13,119 | | Total Non-interest Income | $3,358 | | Total Non-interest Expense | $10,761 | | Net Earnings | $4,701 | [Select Ratios and Other Data](index=8&type=section&id=LANDMARK%20BANCORP%2C%20INC.%20AND%20SUBSIDIARIES%20Select%20Ratios%20and%20Other%20Data%20%28unaudited%29) This table provides key performance, capital, and credit quality ratios, highlighting Q1 2025 improvements like **1.21%** return on average assets Key Ratios (Q1 2025) | Ratio | Value | | :--- | :--- | | Return on average assets | 1.21% | | Net interest margin | 3.76% | | Book value per share | $24.69 | | Total non-performing loans to gross loans | 1.24% | [Non-GAAP Financial Measures](index=10&type=section&id=LANDMARK%20BANCORP%2C%20INC.%20AND%20SUBSIDIARIES%20Non-GAAP%20Finacials%20Measures%20%28unaudited%29) This section reconciles non-GAAP financial measures, including the **64.1%** efficiency ratio and **$18.66** tangible book value per share Key Non-GAAP Metrics (March 31, 2025) | Metric | Value | | :--- | :--- | | Efficiency Ratio | 64.1% | | Tangible Equity to Tangible Assets | 6.99% | | Tangible Book Value Per Share | $18.66 |

Core Points - Landmark Bancorp, Inc. reported diluted earnings per share of $0.81 for Q1 2025, an increase from $0.57 in Q4 2024 and $0.48 in Q1 2024 [1] - Net income for Q1 2025 was $4.7 million, up from $3.3 million in the previous quarter and $2.8 million in the same quarter last year [1] - The return on average assets was 1.21% and return on average equity was 13.71% for Q1 2025 [1][29] - The efficiency ratio improved to 64.1% from 70.8% in the previous quarter [29] Financial Performance - Net interest income for Q1 2025 was $13.1 million, a 5.8% increase from the previous quarter [5] - The net interest margin increased to 3.76% from 3.51% in the prior quarter [5][7] - Total gross loans increased by $22.6 million, or 8.7% annualized, with significant growth in commercial real estate and residential mortgage loans [3][12] - Total deposits rose by $7.1 million in Q1 2025, exceeding typical seasonal declines [3][13] Non-Interest Income and Expenses - Non-interest income totaled $3.4 million for Q1 2025, a slight decrease from the previous quarter [8] - Non-interest expenses decreased by $1.1 million to $10.8 million compared to the prior quarter [10] - The decrease in non-interest expenses was attributed to reductions in various operational costs, including occupancy and professional fees [10] Credit Quality - Credit quality remained stable with minimal net charge-offs of $23,000 in Q1 2025, compared to $219,000 in Q4 2024 [15] - The allowance for credit losses was $12.8 million, or 1.19% of total gross loans [15][29] - Non-performing loans totaled $13.3 million, or 1.24% of gross loans, showing slight improvement from the previous quarter [16][29] Balance Sheet Highlights - As of March 31, 2025, total assets were $1.58 billion, with total stockholders' equity increasing to $142.7 million [14][21] - The loan-to-deposit ratio was 79.5%, up from 78.2% in the prior quarter [13][29] - The ratio of equity to total assets increased to 9.04% from 8.65% in the previous quarter [14][29]

Core Viewpoint - Landmark Bancorp, Inc. is set to release its first quarter 2025 earnings on April 30, 2025, after market close, with a conference call scheduled for May 1, 2025, at 9:30 am (CT) to discuss the results [1]. Company Overview - Landmark Bancorp, Inc. operates as the holding company for Landmark National Bank, listed on NASDAQ under the symbol "LARK" [3]. - The company is headquartered in Manhattan, Kansas, and focuses on providing quality financial and banking services [3]. - Landmark National Bank has a total of 29 locations across 23 communities in Kansas, including multiple branches in cities such as Manhattan, Dodge City, and Topeka [3]. Earnings Call Information - Investors can participate in the earnings call by dialing (833) 470-1428 and using access code 866149, with a recommendation to call at least 5 minutes prior to the start [1]. - A replay of the earnings call will be available until May 8, 2025, by calling (866) 813-9403 and using access code 282640 [2]. Contact Information - The Chief Financial Officer of Landmark Bancorp, Inc. is Mark A. Herpich, who can be reached at (785) 565-2000 for further inquiries [4].

Interest Income and Loans - Interest income increased by $9,171 thousand in 2024 compared to 2023, driven by a $9,645 thousand increase in loans[113] - The average balance of loans receivable increased to $974,294 thousand in 2024, with a yield of 6.30%[116] - As of December 31, 2024, total gross loans increased to $1,052,353,000 from $948,656,000 in 2023, representing an increase of approximately 10.95%[122] - One-to-four family residential real estate loans increased to $352,209,000 in 2024 from $302,544,000 in 2023, showing growth in this segment[122] - As of December 31, 2024, total loans amounted to $12,825 million, a 20.8% increase from $10,608 million in 2023[132] Interest Expense and Net Interest Income - Net interest income for 2024 was $45,724 thousand, up from $43,292 thousand in 2023, reflecting a net interest margin of 3.28%[116] - Interest expense rose to $28,175 thousand in 2024, compared to $21,391 thousand in 2023, primarily due to higher costs associated with deposits[116] - The company's interest rate spread remained stable at 2.58% for both 2024 and 2023[117] - The average balance of interest-earning assets increased to $1,413,525 thousand in 2024, with an overall yield of 5.28%[116] - The total interest-bearing liabilities increased to $1,042,316 thousand in 2024, with a cost of 2.70%[116] Credit Quality and Allowance for Credit Losses - Non-accrual loans rose significantly to $13,115,000 in 2024 from $2,391,000 in 2023, indicating a substantial increase in credit risk[125] - The allowance for credit losses increased to $12,825,000 in 2024, up from $10,608,000 in 2023, reflecting a proactive approach to managing potential loan losses[129] - The ratio of allowance for credit losses to total gross loans was 1.22% as of December 31, 2024, compared to 1.12% in 2023[125] - The company recorded net loan charge-offs of $183,000 in 2024, contrasting with net loan recoveries of $44,000 in 2023, indicating a shift in credit performance[129] - The total non-performing assets increased to $13,282,000 in 2024 from $3,319,000 in 2023, highlighting a deterioration in asset quality[125] Deposits and Funding - Average deposit balances increased to $1,301,094 thousand in 2024 from $1,285,821 thousand in 2023, with a notable rise in the average rate paid on certificates of deposit to 4.26% from 3.08%[140] - Total deposits included uninsured deposits of $181.5 million as of December 31, 2024, representing 13.7% of total deposits[140] - The average balance of money market and checking accounts was $589,360 thousand in 2024, with an average rate of 2.31%[140] Financial Ratios and Performance - Return on average assets improved to 0.83% in 2024 from 0.80% in 2023, while return on average equity decreased to 10.01% from 10.70%[144] - The equity to total assets ratio improved to 8.65% in 2024 from 8.13% in 2023[144] - The ratio of average interest-earning assets to average interest-bearing liabilities was 135.6% in 2024, down from 137.9% in 2023[117] Operational and Strategic Risks - The bank faces intense competition from various financial institutions, which could negatively impact loan and deposit amounts, as well as net interest income[187] - The bank's community banking strategy relies heavily on its management team, and the unexpected loss of key managers could adversely affect operations[193] - The bank is susceptible to cybersecurity risks, with increasing electronic fraudulent activity and data breaches in the financial services industry[197] - The company relies heavily on third-party information technology and telecommunications systems, which if disrupted, could adversely affect operations and financial condition[200] - Operational risks include customer or employee fraud and data processing system failures, which could result in financial losses and regulatory sanctions[204] Future Outlook and Challenges - Future bank failures may lead to increased FDIC insurance premiums, adversely affecting the bank's financial condition and dividend payments[180] - The company anticipates needing to raise additional capital for future growth, particularly for acquisitions, but market conditions may affect this ability[208] - The bank's growth strategy includes potential acquisitions, which may expose it to unknown liabilities and integration challenges[185] - Changes in accounting principles and financial reporting standards could materially impact the bank's financial condition and results of operations[183] - The company may face challenges in replacing core banking and information service vendors, potentially leading to increased costs and customer loss[201] Investment and Market Conditions - The trading market for the company's common shares is limited, affecting liquidity and resale potential for shareholders[212] - Stock price volatility may occur due to fluctuations in operating results and broader market conditions, which could negatively impact market price[213] - Potential partnerships with digital asset companies could require significant investment and pose competitive risks[189] - The company had $178.8 million in municipal securities, representing 48.0% of the total securities portfolio as of December 31, 2024[176]

Financial Data and Key Metrics Changes - Landmark Bancorp reported a net income of $13 million for the full year 2024, reflecting a 6.3% increase from the previous year [5] - Net interest income increased by 6% to $45.7 million, while non-interest income grew by approximately 13% [6] - The return on average assets was 0.83% and the return on average equity was 9.54% [8] - The efficiency ratio improved to 70% in the fourth quarter of 2024 [8] Business Line Data and Key Metrics Changes - Total gross loans increased by $50.5 million or 20% on an annualized basis, reaching nearly $1.1 billion [9][23] - The commercial real estate portfolio grew by $21.1 million, and the commercial loans increased by $10.7 million [24][30] - Non-interest income for the fourth quarter totaled $3.4 million, a decrease of $882,000 compared to the prior quarter [20] Market Data and Key Metrics Changes - Deposit balances increased by $53 million in the fourth quarter, with interest checking and money market deposits growing by $71.3 million [10][25] - The average interest-bearing deposits increased by $8.7 million during the fourth quarter [26] - The unemployment rate in Kansas was reported at 3.6% as of December 31, 2024, indicating a healthy economic landscape [35] Company Strategy and Development Direction - The company is focused on investing in infrastructure to enhance associate and customer experiences, aiming for improved operational efficiency [65][66] - Landmark Bancorp is exploring opportunities for mergers and acquisitions to expand its market presence and improve performance metrics [68][70] - The company aims to maintain a relationship-based banking model, particularly targeting owner-operated businesses [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth pipeline and the ability to adapt to changing economic conditions [56][84] - The company is optimistic about margin expansion even in a stable interest rate environment [48][52] - Management highlighted the importance of maintaining credit discipline and monitoring economic indicators to navigate potential challenges [36][37] Other Important Information - The company distributed a 5% stock dividend and declared a cash dividend of $0.21 per share to be paid in March 2025 [13] - The allowance for credit losses totaled $12.8 million, representing 1.22% of gross loans, indicating strong credit quality [20][34] Q&A Session Summary Question: Expectations on loan repricing and margin improvement - Management indicated that if rates remain stable, there could be a gradual improvement in margins due to various levers on the deposit side [42][48] Question: Repeatability of loan growth - Management expressed confidence in the sustainability of loan growth, noting a strong pipeline and active engagement from commercial bankers [52][56] Question: Hiring of new lenders - The company has recently hired new lenders and continues to explore opportunities for recruitment to enhance its banking capabilities [58][59] Question: Focus for 2025 beyond normal banking activities - The focus will be on investing in infrastructure and enhancing associate experiences to drive customer satisfaction and operational efficiency [64][66] Question: Impact of BOLI on quarterly results - A significant benefit from BOLI was noted, amounting to over $700,000 due to the passing of a former executive [75] Question: Profitability of the mortgage business - Management acknowledged the lean operation of the mortgage business and the potential for cross-selling opportunities, though specific profitability metrics were not disclosed [78][80]