ZACKS·2025-10-31 17:51Core Insights - Landmark Bancorp, Inc. reported a 25% increase in diluted earnings per share (EPS) for Q3 2025, reaching 85 cents compared to 68 cents in the same quarter last year, with net income rising to $4.9 million from $3.9 million [2] - The company's total revenues increased to $18.2 million, up from $15.9 million a year earlier, driven by higher net interest income and improved credit quality [2] Financial Performance - Net interest income rose to $14.1 million, reflecting a 21.5% year-over-year increase, with a steady net interest margin of 3.83%, up 53 basis points from the prior year [3] - The efficiency ratio improved to 60.7% from 66.5% a year earlier, indicating better cost management [4] - Average loan balances grew by $26.7 million from the previous quarter, with significant growth in commercial real estate, residential real estate, and consumer portfolios [3][5] Loan and Deposit Trends - Gross loans at the quarter-end stood at $1.1 billion, flat with the prior quarter, but average loans expanded nearly 10% on an annualized basis [5] - Deposits increased by $51.6 million sequentially to $1.3 billion, with growth in certificates of deposit and money market accounts [6] - The loan-to-deposit ratio improved to 83.4% from 86.6% in the previous quarter, indicating better liquidity for future loan expansion [6] Credit Quality - Non-performing loans decreased by $7 million to $10 million, or 0.89% of gross loans, from 1.52% in the previous quarter, reflecting improved credit quality [7] - The allowance for credit losses ended the quarter at $12.3 million, representing 1.10% of total loans [7] Management Commentary - The CEO described the quarter as a solid period of earnings and increased profitability, attributing it to growth in both net interest and non-interest income [9] - Management emphasized ongoing investments in talent and infrastructure to support customer expansion and long-term shareholder value [11] Factors Influencing Results - The quarterly performance benefited from loan-driven revenue growth, improved funding mix, and reduced credit costs, with tangible book value increasing by 6.6% sequentially to $20.96 per share [12] - Unrealized losses on the securities portfolio declined to $9.2 million from $13.9 million in the previous quarter [12] Future Outlook - Management expressed confidence in sustaining earnings momentum, with expectations of stable credit trends and a healthy Kansas economy supporting lending opportunities [14] - The board declared a cash dividend of 21 cents per share and a 5% stock dividend, marking the 25th consecutive annual stock dividend [15]