Landmark Bancorp, Inc. Q2 FY2025 earnings call

• Strong net income of $4.4 million in Q2 2025, up from $3 million in Q2 2024. • Diluted EPS increased 56% to $0.75. • Total gross loans grew by $42.9 million (16% annualized), with growth in residential mortgage, commercial, and commercial real estate portfolios. • Net interest income grew 4.3% QoQ, net interest margin at 3.83%. • Efficiency ratio improved to 62.8%. • Board declared a $0.21 per share cash dividend, 96th consecutive quarterly dividend. • Credit quality remains solid with low net credit losses; allowance for credit losses increased by $1 million. • Capital and liquidity measures strong, with regulatory capital ratios exceeding well-capitalized levels. • Deposits total $1.3 billion, with retail-based and FDIC-insured deposits.

Net income in Q2 2025 totaled $4.4 million compared to $3 million in the same period last year. Diluted earnings per share was $0.75, a 56% increase year-over-year. Total gross loans increased by $42.9 million or 16% annualized, with total loan balances exceeding $1.1 billion. Net interest income grew by 4.3% QoQ, and net interest margin increased 7 basis points to 3.83%. Efficiency ratio was 62.8%. Allowance for credit losses was $13.8 million, 1.23% of total loans. Deposits totaled $1.3 billion at June 30, 2025, down $61.9 million QoQ but up $23.4 million YoY.

• Plan to gather more deposits through the 29 branch network in Kansas, with initiatives in the second half of the year. • Aim to support loan growth with a high-quality deposit base. • Expect cash flows from investment portfolio to help pay down borrowings over the next year.

• Economic uncertainties could affect credit quality. • Interest rate risks and concentration risks are monitored and managed, but remain potential areas of concern.

Q: Could you provide further commentary on the $1 million provision for credit losses and outlook for nonperforming loans?

A: Abby mentioned the $1 million provision is due to loan growth, and the nonaccrual loan $2.6 million has since been brought current, with trends expected to continue positively. Raymond also noted ongoing evaluation of nonaccrual loans.

Q: Any thoughts on deposits ticking down and Home Loan Bank borrowings?

A: Abby mentioned focus on gathering deposits through branch network initiatives in the second half. Mark added they have capacity with Federal Home Loan Bank and Federal Reserve Bank, and a one-day blip in brokered funding led to borrowings, but see no concerns on deposit mix long-term.