Landmark Bancorp, Inc. Q3 FY2025 earnings call

• Net income increased year-over-year due to growth in net interest income and prudently managed expenses.
• Return on average assets and return on average equity improved.
• Maintained a steady net interest margin and improved efficiency ratio.
• Total loans were flat period-end but average loans grew nearly 10% annualized.
• Brokered deposits were a primary driver of deposit growth, with solid growth in noninterest-bearing demand deposits and reduced reliance on borrowing sources.
• Nonperforming loans declined by almost $7 million, improving overall credit quality.
• Tangible book value per share increased.
• Board declared a cash dividend of $0.21 per share and a 5% stock dividend.
• Capital and liquidity measures are strong, with a stable low-cost core deposit base.
• Focus on investing in talented associates and making infrastructure upgrades to support customer growth.

Net income for the third quarter of 2025 totaled $4.9 million or $0.85 per diluted share, compared to $3.9 million or $0.68 per diluted share in the same period last year, an increase of 24.1% in diluted earnings per share. Net interest income totaled $14.1 million in the third quarter of 2025, an increase of $411,000 compared to the second quarter of 2025. Noninterest income totaled $4.1 million this quarter, an increase of $442,000 compared to the prior quarter. Total loans were flat this quarter based on period-end balances, while average loans grew nearly 10% on an annualized basis compared to the prior quarter. Deposits totaled $1.3 billion at September 30, 2025, and increased by $51.6 million on a linked-quarter basis. The return on average assets improved to 1.21% for the quarter and return on average equity improved to 13.0%. The net interest margin held steady at 3.83% in the third quarter of 2025. The efficiency ratio improved to 60.7% in the third quarter.

• Look forward to building on the momentum of the third quarter.
• Continue to invest in talented associates and make infrastructure upgrades to support continued customer growth while making Landmark an exceptional place to work and bank.

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