Core Viewpoint - Zacks Investment Research has initiated coverage of Landmark Bancorp, Inc. (LARK) with an "Outperform" recommendation, highlighting strong loan growth, consistent profitability, and a solid capital position as key drivers for shareholder value creation [1] Financial Performance - Landmark Bancorp's second-quarter 2025 performance showed gross loans increased by $42.9 million, a 16% annualized growth, driven by residential mortgages (+$21.5 million), commercial loans (+$13.4 million), and commercial real estate (+$10.9 million) [2] - Net interest income rose by 24.7% year over year, with the net interest margin reaching 3.83% [2] - Earnings per share (EPS) increased to 75 cents from 52 cents in the previous year, totaling $1.56 for the first half of 2025 [2] - Return on average assets (ROAA) improved to 1.11% and return on average equity (ROAE) reached 12.25%, while the efficiency ratio decreased to 62.8% from 67.9% [2] Shareholder Commitment - The company declared its 96th consecutive quarterly dividend of 21 cents per share, with book value per share rising to $25.66 from $23.59 at the end of 2024 [3] - Capital ratios remain strong, with leverage and total risk-based ratios at 9.2% and 13.6%, respectively, well above regulatory requirements [3] Growth Drivers - Landmark Bancorp operates primarily in Kansas, benefiting from a favorable local economy with an unemployment rate of 3.8% and supportive housing trends [5] - Non-interest income grew to $3.6 million in the second quarter, bolstered by gains on mortgage loan sales and deposit-related fees, enhancing revenue diversification [5] Market Position and Valuation - Shares of Landmark Bancorp have appreciated by 34.4% over the past year, outperforming sector and sub-industry averages [8] - The stock is trading at 9.08X trailing earnings and 1.05X book value, which is below broader market multiples, indicating a compelling valuation [8]
Zacks Initiates Coverage of Landmark Bancorp With Outperform Rating