LANDMARK BANCORP INC Q4 FY2024 earnings call

• Abby Wendel highlighted strong 2024 results with net income growth, loan and deposit growth, and solid credit quality. She mentioned balanced growth across the footprint, capitalizing on a relationship-based banking model in various markets.
• Mark Herpich provided detailed financials: net interest income increase due to lower interest expense, provision for credit losses of $1.5 million, non-interest income and expense details, and loan and deposit balance changes.
• Raymond McLanahan discussed loan portfolio growth across segments (residential mortgage, agriculture, commercial, commercial real estate), solid credit quality, and the economic outlook in Kansas, including unemployment and housing market data.

Landmark Bancorp's 2024 results were strong. Net income for the 12 months ending December 31, 2024 was $13 million, an increase of 6.3% from the prior year. Net interest income rose 6% to $45.7 million. Non-interest income grew by $1.5 million or approximately 13%. In the fourth quarter, net income was $3.3 million, diluted earnings per share were $0.57, an increase of 25% over the same quarter last year. Total gross loans increased by $50.5 million or 20% on an annualized basis, bringing total loan balances to nearly $1.1 billion. Deposit balances increased $53 million. The net interest margin was 3.51% in the fourth quarter, and the efficiency ratio was 70%.

• Abby Wendel stated the company is well-positioned to grow business, focusing on strengthening customer relationships and growing lending and fee businesses across markets.
• Mark Herpich expressed hope for margin expansion, considering levers on the deposit side and investment portfolio, and mentioned monitoring deposit and funding costs.

• Interest rate risks were mentioned as the bank has a portion of loans repricing, and the need to be prepared for changing rate environments.
• Concentration risks were noted as the bank monitors and manages risks related to its loan portfolio and deposit structure.

Q: Ross Haberman asked about 30% of loans repricing, if rates stay the same could we expect a better margin throughout the year and about loan growth repeatability.

A: Abby Wendel turned to Raymond McLanahan for specifics on loan repricing, and Abby and Raymond discussed loan growth repeatability, stating the pipeline is strong and commercial bankers are active.

Q: John Rodis asked about M&A play and BOLI.

A: Abby Wendel mentioned M&A could play a role as the bank aims to be a bank of choice, and Mark Herpich discussed the BOLI benefit from a former President's death.