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]

Manhattan, KS, April 24, 2025 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (Nasdaq: LARK) announced that it will release earnings for the first quarter of 2025 after the market closes on Wednesday, April 30, 2025. The Company will host a conference call to discuss these results on Thursday, May 1, 2025 at 9:30 am (CT). Investors may listen to the Company’s earnings call via telephone by dialing (833) 470-1428 and using access code 866149. Investors are encouraged to call the dial-in number at least 5 minutes ...

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]

Financial Performance - Landmark Bancorp reported a 6.3% increase in net earnings for 2024, totaling $13.0 million compared to $12.2 million in 2023[3] - Diluted earnings per share for Q4 2024 were $0.57, down from $0.68 in Q3 2024 but up from $0.46 in Q4 2023[2] - Basic net earnings per share for the year ended December 31, 2024, were $2.26, compared to $2.13 in 2023, reflecting a growth of 6.1%[24] Loan and Deposit Growth - Total gross loans increased by $51 million, or 20% annualized, in Q4 2024, with a total of $1.1 billion in gross loans as of December 31, 2024[5][13] - Total deposits rose by $53.3 million, or 16.6% annualized, reaching $1.3 billion by December 31, 2024[14] - Gross loans reached $1,052,353 thousand in December 2024, up from $948,656 thousand in December 2023, marking a significant increase of 10.9%[21] - Total deposits rose to $1,328,766 thousand in December 2024, compared to $1,316,251 thousand in December 2023, reflecting an increase of 0.4%[21] Interest Income and Expenses - Net interest income for Q4 2024 was $12.4 million, a 6.9% increase from the previous quarter, with a net interest margin improvement to 3.51%[7][8] - Total interest income for the three months ended December 31, 2024, was $18,952,000, an increase from $17,486,000 for the same period in 2023, representing a growth of 8.4%[24] - Net interest income after provision for credit losses for the year ended December 31, 2024, was $43,424,000, compared to $42,943,000 in 2023, reflecting a year-over-year increase of 1.1%[24] - Non-interest expenses increased to $11.9 million in Q4 2024, up $1.3 million from the prior quarter, driven by higher professional fees and compensation costs[11] Non-Interest Income - Non-interest income decreased to $3.4 million in Q4 2024, primarily due to a $1.0 million loss on the sale of investment securities[10] - Non-interest income for the three months ended December 31, 2024, totaled $3,371,000, up from $2,254,000 in the same period of 2023, marking a significant increase of 49.6%[24] - Adjusted non-interest income increased to $4,340,000 from $3,980,000 in September 2024[30] Asset Quality and Credit Losses - The allowance for credit losses was $12.8 million, or 1.22% of total gross loans, with net loan charge-offs of $219,000 in Q4 2024[16] - The provision for credit losses increased to $1,500,000 for the three months ended December 31, 2024, compared to $50,000 in the same period of 2023, indicating a substantial rise in credit loss provisions[24] - Total non-performing assets decreased to $13,282,000 as of December 31, 2024, from $3,319,000 in the same period of 2023, indicating improved asset quality[26] - Total non-performing loans to gross loans outstanding decreased to 1.25% from 1.34%[27] - Allowance for credit losses to gross loans outstanding increased to 1.22% from 1.15%[27] Tax and Dividends - The effective tax rate for Q4 2024 was (37.0%), reflecting the recognition of $1.0 million in previously unrecognized tax benefits[12] - Landmark declared a cash dividend of $0.21 per share, to be paid on March 5, 2025, marking the 24th consecutive year of stock dividends[5] Balance Sheet Highlights - Total assets increased to $1,574,142 thousand in December 2024, up from $1,561,672 thousand in December 2023, representing a growth of 0.8%[21] - The total stockholders' equity was $136,215 thousand in December 2024, a slight decrease from $126,914 thousand in December 2023, reflecting a change of 7.3%[21] - The total liabilities increased to $1,437,927 thousand in December 2024, compared to $1,434,758 thousand in December 2023, showing a marginal increase of 0.2%[21] - Cash and cash equivalents decreased to $20,275 thousand in December 2024 from $27,101 thousand in December 2023, a decline of 25.3%[21] - The investment securities available-for-sale totaled $372,512 thousand in December 2024, down from $452,769 thousand in December 2023, a decrease of 17.7%[21] Efficiency and Returns - The efficiency ratio for the three months ended December 31, 2024, was 70.0%, compared to 71.9% in the same period of 2023, showing improved operational efficiency[26] - Return on average assets for the three months ended December 31, 2024, was 0.83%, an increase from 0.67% in the same period of 2023[26] - Return on average equity for the three months ended December 31, 2024, was 9.54%, down from 9.39% in the same period of 2023[26] - Efficiency ratio improved to 70.0% from 66.5% in the previous quarter[30] - Tangible equity to tangible assets ratio was 6.58%, down from 6.84% in the previous quarter[30]

Core Insights - Landmark Bancorp, Inc. reported diluted earnings per share of $0.57 for Q4 2024, a decrease from $0.68 in Q3 2024 but an increase from $0.46 in Q4 2023 [1] - For the full year 2024, diluted earnings per share increased to $2.26 from $2.13 in 2023, with net earnings rising to $13.0 million, a 6.3% increase from $12.2 million in 2023 [2] Financial Performance - Q4 2024 net income was $3.3 million, compared to $2.6 million in Q4 2023 and $3.9 million in Q3 2024 [1] - The return on average assets for 2024 was 0.83%, and the return on average equity was 10.01% [2][27] - The efficiency ratio improved to 70.0% in Q4 2024 from 71.9% in Q4 2023 [27] Loan and Deposit Growth - Total gross loans increased by $51 million or 20% annualized in Q4 2024, with significant growth in residential mortgages and commercial real estate loans [4] - Total deposits rose by $53 million in Q4 2024, primarily due to seasonal growth in money market and interest checking accounts [4][13] Interest Income and Expenses - Net interest income for Q4 2024 was $12.4 million, a 6.9% increase from the previous quarter, driven by lower interest expenses [6] - The net interest margin improved to 3.51% in Q4 2024 from 3.30% in Q3 2024 [7][27] Non-Interest Income and Expenses - Non-interest income for Q4 2024 totaled $3.4 million, a decrease of $882,000 from the previous quarter, primarily due to a $1.0 million loss on investment securities [9] - Non-interest expenses increased to $11.9 million in Q4 2024, up by $1.3 million from the prior quarter, mainly due to higher professional fees and compensation costs [10] Credit Quality - The allowance for credit losses was $12.8 million, or 1.22% of total gross loans, with net charge-offs totaling $219,000 in Q4 2024 [15] - Non-performing loans decreased to $13.1 million, or 1.25% of gross loans, compared to 1.34% in the previous quarter [16] Dividends and Stockholder Returns - The Board of Directors declared a cash dividend of $0.21 per share, to be paid on March 5, 2025 [4] - A 5% stock dividend was issued on December 16, 2024, marking the 24th consecutive year of stock dividends [4]

Core Points - Landmark Bancorp, Inc. will release its fourth quarter 2024 earnings after market close on February 4, 2025 [1] - A conference call to discuss the earnings results is scheduled for February 5, 2025, at 10:00 am (CT) [1] - Investors can access the earnings call by dialing (833) 470-1428 with access code 296482 [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]

Financial Data and Key Metrics Changes - Landmark reported net earnings of $3.9 million for Q3 2024, with earnings per share of $0.72, a return on average assets of 1.0%, and a return on average equity of 11.82% [4][5] - Net income increased by 30.5% compared to the prior quarter and 36.6% year-over-year, while earnings per share rose by 36.5% compared to Q3 2023 [5][11] - The efficiency ratio for Q3 2024 was 66.5% [4] Business Line Data and Key Metrics Changes - Total gross loans increased by $21.3 million, reaching $1 billion for the first time in company history, with net interest income growing by 5.7% [6][21] - Noninterest income rose by $533,000 over the prior quarter, driven by fee-based revenue and gains on the sale of a former branch facility [7][18] - Noninterest expense decreased by $536,000 compared to the prior quarter, totaling $10.6 million [19] Market Data and Key Metrics Changes - Deposits increased by 8.0%, totaling $1.3 billion at the end of Q3 2024 [22] - Interest checking and money market deposits grew by $19.2 million, while non-interest checking and savings accounts declined by $5.6 million [23] Company Strategy and Development Direction - The company is focusing on loan and fee business growth, particularly in Kansas City, where it is relatively new [35] - Landmark maintains a conservative deposit portfolio and employs a relationship-based banking model to ensure stability and consistency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future interest rate environment, indicating that the balance sheet is well-positioned for potential rate cuts [12][13] - The current economic landscape in Kansas remains healthy, with a low unemployment rate and improving buyer activity in the housing market [32][33] Other Important Information - The Board declared a cash dividend of $0.21 per share and a 5% stock dividend, marking the 93rd consecutive quarterly cash dividend and the 24th consecutive year of stock dividends [9] Q&A Session Summary Question: Impact of recent rate cuts on margin and spread - Management noted that the full impact of the recent 50 basis point cut will be felt in Q4 2024 and into 2025, with optimism about future margins [38][39] Question: Mortgage volume and fixed-rate options - Management indicated an increase in activity for fixed-rate options as rates decline, with a robust pipeline for mortgage products [42][44] Question: Margins on fixed-rate sales - Margins on the sale of fixed-rate mortgages are currently stable, with no significant changes observed [45]