Landmark Bancorp (LARK) Earnings Transcript

Core Viewpoint - Landmark Bancorp, Inc. reported strong financial performance in the third quarter of 2025, with significant improvements in credit quality, net income, and overall efficiency, reflecting the company's commitment to growth and shareholder value. Financial Performance - Net income for the third quarter totaled $4.9 million or $0.85 per diluted share, an increase of 24.1% compared to $3.9 million or $0.68 per diluted share in the same period last year [4] - The tangible book value per share increased to $20.96, up 6.6% on a linked quarter basis and 15.7% from the end of 2024 [2] - Non-interest income totaled $4.1 million, an increase of $442,000 compared to the prior quarter [9] Credit Quality - Nonperforming loans declined by almost $7 million, primarily due to the resolution of a large commercial loan on nonaccrual status [2][16] - The allowance for credit losses stood at $12.3 million, representing 1.1% of gross loans [17] - Net charge-offs totaled $2.3 million, compared to just $40,000 in the prior quarter [9][16] Loan and Deposit Growth - Average loans increased by $26.7 million, or approximately 10% annualized during the third quarter [11][15] - Total deposits increased by $51.6 million on a linked quarter basis, totaling $1.3 billion [12] - Broker deposits were the primary driver of deposit growth, alongside solid growth in non-interest-bearing demand deposits [3] Efficiency and Cost Management - The efficiency ratio improved to 60.7% for the third quarter, compared to 66.5% in the same period last year [10] - Non-interest expense totaled $11.3 million, an increase of $290,000 compared to the prior quarter, driven by higher professional fees and occupancy expenses [10] Future Outlook - The company plans to continue investing in talent and infrastructure to support customer growth and enhance operational efficiency [5][19] - Landmark Bancorp remains focused on maintaining solid credit quality and exploring efficiencies in operations amid economic uncertainties [19]