Landmark Bancorp(US:LARK)2024-11-01 18:03Financial Data and Key Metrics Changes - Landmark reported net earnings of $3.9 million for Q3 2024, with earnings per share of $0.72, a return on average assets of 1.0%, and a return on average equity of 11.82% [4][5] - Net income increased by 30.5% compared to the prior quarter and 36.6% year-over-year, while earnings per share rose by 36.5% compared to Q3 2023 [5][11] - The efficiency ratio for Q3 2024 was 66.5% [4] Business Line Data and Key Metrics Changes - Total gross loans increased by $21.3 million, reaching $1 billion for the first time in company history, with net interest income growing by 5.7% [6][21] - Noninterest income rose by $533,000 over the prior quarter, driven by fee-based revenue and gains on the sale of a former branch facility [7][18] - Noninterest expense decreased by $536,000 compared to the prior quarter, totaling $10.6 million [19] Market Data and Key Metrics Changes - Deposits increased by 8.0%, totaling $1.3 billion at the end of Q3 2024 [22] - Interest checking and money market deposits grew by $19.2 million, while non-interest checking and savings accounts declined by $5.6 million [23] Company Strategy and Development Direction - The company is focusing on loan and fee business growth, particularly in Kansas City, where it is relatively new [35] - Landmark maintains a conservative deposit portfolio and employs a relationship-based banking model to ensure stability and consistency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future interest rate environment, indicating that the balance sheet is well-positioned for potential rate cuts [12][13] - The current economic landscape in Kansas remains healthy, with a low unemployment rate and improving buyer activity in the housing market [32][33] Other Important Information - The Board declared a cash dividend of $0.21 per share and a 5% stock dividend, marking the 93rd consecutive quarterly cash dividend and the 24th consecutive year of stock dividends [9] Q&A Session Summary Question: Impact of recent rate cuts on margin and spread - Management noted that the full impact of the recent 50 basis point cut will be felt in Q4 2024 and into 2025, with optimism about future margins [38][39] Question: Mortgage volume and fixed-rate options - Management indicated an increase in activity for fixed-rate options as rates decline, with a robust pipeline for mortgage products [42][44] Question: Margins on fixed-rate sales - Margins on the sale of fixed-rate mortgages are currently stable, with no significant changes observed [45]