Landmark Bancorp, Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Landmark Bancorp, Inc. reported a 44.4% increase in net earnings for the year ended December 31, 2025, totaling $18.8 million compared to $13.0 million in 2024, with diluted earnings per share rising to $3.07 from $2.15 [2][6] - The company declared a quarterly cash dividend of $0.21 per share, to be paid on February 26, 2026 [9] Fourth Quarter Performance - For the fourth quarter of 2025, diluted earnings per share were $0.77, down from $0.81 in the previous quarter but up from $0.54 in the same quarter of the prior year [1][6] - Net income for the fourth quarter was $4.7 million, compared to $4.9 million in the prior quarter and $3.3 million in the fourth quarter of 2024 [1][6] - The return on average assets was 1.17%, and the return on average equity was 11.88% for the fourth quarter [1][2] Annual Performance Highlights - Total revenue for 2025 increased to $18.7 million, a 2.9% increase over the prior quarter [8] - The net interest margin improved to 4.03%, a 20-basis-point increase compared to the prior quarter, driven by higher yields on earning assets and lower funding costs [8][11] - Average loans grew by $112.3 million, or 11.5%, primarily due to strong growth in commercial real estate loan originations and residential mortgages [8][11] Efficiency and Cost Management - The efficiency ratio improved to 62.7% for the year, down from 69.1% in 2024, indicating better cost management [2][8] - Non-interest expense for the fourth quarter totaled $12.3 million, an increase of 9.0% compared to the prior quarter, primarily due to higher compensation and benefits expenses [14][8] Balance Sheet Highlights - As of December 31, 2025, total assets were $1.6 billion, with gross loans totaling $1.1 billion [26][19] - Period-end deposit balances increased by $63.4 million to $1.4 billion, an annualized increase of 19.0% compared to the prior quarter [18][19] - Stockholders' equity increased to $160.6 million, with a book value of $26.44 per share [19][26] Credit Quality - Non-performing loans totaled $10.0 million, or 0.90% of gross loans, at year-end 2025, unchanged from the previous quarter [21][20] - The allowance for credit losses was $12.5 million, or 1.12% of total gross loans, reflecting a slight increase from the prior quarter [20][19]