Landmark Bancorp Reports Significant Earnings Increase
Landmark Bancorp Financial Growth Overview
Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) has announced impressive financial results for the first quarter of 2025, showcasing a robust increase in net earnings by 43.2%. The company's strong operational performance saw diluted earnings per share rise to $0.81, up from $0.57 in the previous quarter and $0.48 during the same quarter last year. This translates to a net income of $4.7 million compared to $3.3 million from the prior quarter and $2.8 million a year ago.
Quarterly Performance Metrics
Key Highlights of Q1 2025
The following highlights from Landmark's financial performance illustrate the bank's continued growth trajectory:
- Loan growth achieved $22.6 million, indicating an annualized increase of 8.7% over the previous quarter.
- Net interest margin rose by 25 basis points to reach 3.76%, compared to 3.51% in the last quarter.
- Deposits surged by $42.3 million, representing a 3.3% increase year-over-year and a $7.1 million or 2.2% rise since the previous quarter.
- Other borrowed funds decreased by $11.8 million, contributing to lower interest expenses.
- Non-interest expenses were reduced by $1.1 million compared to the prior quarter.
- Credit quality remained stable, with net charge-offs totaling just $23,000.
- The ratio of equity to assets improved to 9.04% during this quarter.
Management Commentary
Abby Wendel, President and CEO of Landmark, expressed satisfaction with the company's performance, stating, "I am pleased to report strong growth in net income this quarter, driven by increased net interest income, reduced expenses, and exceptional credit quality. We experienced solid loan demand in the first quarter, especially for commercial real estate and residential mortgage loans. Furthermore, total gross loans increased by $22.6 million or 8.7% on an annualized basis with growth across most loan categories. Our total deposits have also risen by over $60 million in the past two quarters, exceeding typical seasonal downtrends in money markets and checking accounts. The decline in other borrowed funds reduced interest expenses, aiding our overall net interest margin as well."
Dividend Declaration
In light of the impressive results, the Board of Directors has declared a cash dividend of $0.21 per share, which will be distributed on June 4, 2025, to common stockholders of record by May 21, 2025.
Future Outlook and Earnings Call
Management plans to hold a conference call to discuss the financial results, providing an opportunity for investors to engage. This call is set to begin at 9:30 a.m. Central Time on Thursday, May 1, 2025. Investors wishing to participate can do so by dialing (833) 470-1428 and using access code 866149. A replay will be accessible until May 8, 2025, by calling (866) 813-9403 and entering access code 282640.
Net Interest Income Breakdown
In the first quarter of 2025, Landmark reported net interest income of $13.1 million, an increase of $720,000 or 5.8% compared to the previous quarter. This uptick can be attributed to increased interest income from loans and lower interest expenses on deposits and other cooling debt. The average loan balances also grew by $38.4 million, accompanied by a rise in yield on loans to 6.34%. Despite a slight dip in interest from investment securities, overall financial positions reflect a sound balance sheet.
Non-Interest Income Trends
Landmark's non-interest income for the first quarter totaled $3.4 million, slightly dipping by $13,000 from the prior quarter. This decline was primarily driven by a decrease in bank-owned life insurance income and service charges related to deposits. However, the company managed to offset some of this decrease with an insignificant loss on sales of lower-yielding investment securities.
Expense Management
Landmark effectively managed its non-interest expenses which totaled $10.8 million, down by $1.1 million over the prior quarter. Reductions stemmed chiefly from lower occupancy and equipment costs, alongside decreased professional fees due to ongoing cost-cutting initiatives following branch closures. The management's focus on optimizing expenses further complements the overall financial health of Landmark.
Key Balance Sheet Highlights
The company's balance sheet remained resilient as of March 31, 2025, with total gross loans reaching $1.1 billion—a notable increase driven particularly by commercial real estate and residential loans. Deposits showed good growth alongside a robust loan-to-deposit ratio of 79.5% compared to 78.2% in the previous quarter. Landmark's stockholders’ equity also grew, reaching $142.7 million.
Frequently Asked Questions
What were Landmark's earnings per share for the first quarter?
Landmark reported diluted earnings per share of $0.81 for the first quarter of 2025.
How much was the declared dividend per share?
The Board of Directors declared a cash dividend of $0.21 per share.
What factors contributed to Landmark's net income growth?
The increase was driven by higher net interest income, lower expenses, and stable credit quality.
When is the conference call scheduled to discuss earnings?
The conference call will take place at 9:30 a.m. Central Time on Thursday, May 1, 2025.
What is the loan-to-deposit ratio for Landmark?
As of March 31, 2025, the loan-to-deposit ratio was 79.5%.
About The Author
Contact Hannah Lewis privately here. Or send an email with ATTN: Hannah Lewis as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.