[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].

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]