Landmark Bancorp(US:LARK)2024-08-13 18:58Financial Performance - Net earnings for Q2 2024 were $3.0 million, a decrease of $350,000 or 10.4% from Q2 2023's $3.4 million[83]. - Total non-interest income decreased by $109,000, or 2.9%, to $3.7 million in the second quarter of 2024, primarily due to a decrease in gains on sales of loans[100]. - Non-interest expense increased by $746,000, or 7.2%, to $11.1 million in the second quarter of 2024, mainly due to higher other non-interest expenses[102]. - The provision for credit losses for the first six months of 2024 was $300,000, compared to $299,000 in the same period of 2023[98]. - The company reported a return on average assets of 0.78% for Q2 2024, down from 0.88% in Q2 2023[83]. Interest Income and Expenses - Interest income for Q2 2024 increased by $2.4 million, or 14.9%, to $18.2 million compared to Q2 2023[84]. - Interest income on loans rose by $2.4 million, or 19.0%, to $15.0 million in Q2 2024, driven by higher yields and average balances[84]. - Interest expense for Q2 2024 increased by $2.2 million to $7.2 million, with interest-bearing deposits rising from 1.57% in Q2 2023 to 2.44% in Q2 2024[87]. - Net interest income for Q2 2024 increased by $141,000, or 1.3%, to $11.0 million compared to Q2 2023[89]. - The net interest margin for Q2 2024 remained stable at 3.21%, the same as in Q2 2023[89]. Assets and Liabilities - Total assets increased, with average loan balances rising from $873.9 million in Q2 2023 to $955.1 million in Q2 2024[84]. - The company reported a total of $1,550,739 in assets as of June 30, 2024, compared to $1,518,373 in the previous year[94]. - Total deposits decreased by $65.8 million, or 5.0%, to $1.3 billion at June 30, 2024[112]. - Non-interest-bearing deposits were $360.6 million, or 28.8% of total deposits, at June 30, 2024[113]. - Total borrowings increased by $62.7 million to $161.7 million at June 30, 2024, primarily due to an increase in FHLB borrowings[115]. Capital and Dividends - The dividend payout ratio for Q2 2024 was 38.18%, up from 32.31% in Q2 2023[83]. - A quarterly cash dividend of $0.21 per share was paid to stockholders during the quarter ended June 30, 2024[123]. - The company met all capital adequacy requirements as of June 30, 2024, and is considered "well capitalized" under regulatory standards[123]. - Approximately $1.3 million was available to be paid as dividends to the company by the bank without prior regulatory approval as of June 30, 2024[124]. Interest Rate and Sensitivity - The interest rate spread decreased to 2.51%, compared to 2.65% in the previous year[92]. - Interest rate sensitivity simulations indicated a potential decrease in net interest income of 15.0% with a 300 basis point rise in interest rates[128]. Credit Quality - The allowance for credit losses on loans was $10.9 million, or 1.11% of gross loans outstanding, as of June 30, 2024[107]. - Outstanding loan commitments, excluding standby letters of credit, amounted to $211.1 million as of June 30, 2024[121]. - The company had $125.3 million borrowed on its line of credit with the FHLB as of June 30, 2024, with additional borrowing capacity of $256.9 million[119].