• Landmark Bancorp, Inc. Announces Second Quarter Earnings Per Share of $0.64. Declares Cash Dividend of $0.21 per Share.

    المصدر: Nasdaq GlobeNewswire / 08 أغسطس 2023 17:11:01   America/New_York

    Manhattan, KS, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.64 for the three months ended June 30, 2023, compared to $0.64 per share in the first quarter of 2023 and $0.58 per share in the same quarter last year. Net earnings for the second quarter of 2023 amounted to $3.4 million, compared to $3.4 million in the prior quarter and $3.0 million for the second quarter of 2022. For the three months ended June 30, 2023, the return on average assets was 0.88%, the return on average equity was 11.52%, and the efficiency ratio was 69.2%.

    For the first six months of 2023, diluted earnings per share totaled $1.29 compared to $1.18 during the same period in 2022. Net earnings for the six months of 2023 totaled $6.7 million, compared to $6.2 million in the first six months of 2022. For the six months ended June 30, 2023, the return on average assets was 0.89% and the return on average equity was 11.77%.

    In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “While growth in interest rates over this past year has increased funding costs and provided stress to the banking industry, Landmark continued to provide solid earnings this quarter driven by growth in loans, well-controlled expenses, and solid credit quality. Compared to the first quarter 2023, total gross loans increased by $23.5 million, or 10.8% on an annualized basis mainly due to growth in agriculture, commercial and residential mortgage loans. Deposits decreased $13.1 million during the second quarter of 2023 due to lower non-interest demand deposits but offset by growth in money market, interest checking and certificates of deposit accounts. Our loan to deposit ratio this quarter remains relatively low and reflects ample liquidity for future loan growth. This quarter's net interest income declined slightly from the prior quarter, as growth in interest income on loans was offset by increased interest expense on deposits and other borrowings. Our net interest margin totaled 3.21% during the second quarter of 2023 as compared to 3.31% in the prior quarter and 3.05% in the second quarter last year. Non-interest income increased $334,000 compared to the first quarter 2023 mainly due to growth in both fees and service charges and gains on sales of residential mortgage loans. Non-interest expense remained well controlled in the second quarter 2023 increasing slightly compared to the prior quarter.”

    Mr. Scheopner continued, “This quarter we continued to see low net loan charge-offs, declining non-performing assets and low levels of delinquent loans. Landmark recorded net loan charge-offs of $68,000 in the second quarter of 2023 compared to $42,000 in the second quarter of 2022 and $47,000 in the first quarter of 2023. Non-accrual loans totaled $2.8 million, or 0.31%, of gross loans at June 30, 2023 and have declined $2.1 million over the last twelve months. The allowance for loan losses totaled $10.4 million at June 30, 2023, or 1.17% of period end gross loans, while our equity to assets ratio totaled 7.62%.”

    Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid September 6, 2023, to common stockholders of record as of the close of business on August 23, 2023. Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Wednesday, August 9, 2023. Investors may participate via telephone by dialing (833) 470-1428 and using access code 545875. A replay of the call will be available through September 8, 2023, by dialing (866) 813-9403 and using access code 287303.

    SUMMARY OF SECOND QUARTER RESULTS

    Net Interest Income

    Net interest income in the second quarter of 2023 amounted to $10.8 million representing a slight decrease compared to the previous quarter. This decrease in net interest income was due mainly to higher interest expense on deposits and borrowed funds but partly offset by growth in interest income on loans. The net interest margin totaled 3.21% during the second quarter compared to 3.31% in the prior quarter. Compared to the previous quarter, interest income on loans increased $1.2 million, or 11.0%, to $12.6 million due to both higher rates and balances while the average tax-equivalent yield on the loan portfolio increased 37 basis points to 5.80%. Interest income on investment securities increased slightly due to small increases in rates and balances. The average tax-equivalent yield on investment securities totaled 2.70% this quarter compared to 2.68% in the prior quarter.

    Interest expense on deposits increased $913,000 in the second quarter 2023, compared to the prior quarter, mainly due to higher rates and average balances on interest-bearing deposits. The average rate on interest-bearing deposits increased this quarter to 1.57% compared to 1.18% in the prior quarter. Interest expense on total borrowed funds grew $450,000, compared to the prior quarter, as the average rate paid increased 36 basis points to 5.05% and average balances grew $21.3 million.

    Non-Interest Income

    Non-interest income totaled $3.8 million for the second quarter of 2023, an increase of $33,000, or 0.9%, compared to the same period last year and an increase of $334,000, or 9.6%, from the previous quarter. The increase in non-interest income during the second quarter of 2023 compared to the same period last year was primarily due to increases of $101,000 in fees and services charges, $142,000 in other non-interest income and $33,000 in bank owned life insurance (“BOLI”) income. The increases in fees and services charges and BOLI income were primarily associated with the acquisition of Freedom Bank in the fourth quarter of 2022, as the acquisition increased Landmark’s deposit base and BOLI assets. The increase in other non-interest income was primarily related to an increase in rental income associated with a branch which was vacant in the prior year period. Gains on sales of one-to-four family residential loans declined $243,000 from the same period last year due to lower fixed rate mortgage originations. Compared to the prior quarter, the increase in non-interest income was primarily due to seasonal increases with fees and service charges and increased loan originations of residential mortgage loans, as well as a full quarter of rental income noted above.

    Non-Interest Expense

    During the second quarter of 2023, non-interest expense totaled $10.3 million, an increase of $1.3 million, or 14.7%, over the same period in 2022 but unchanged compared to the prior quarter. Compared to the same period last year, higher costs this year for compensation and benefits, occupancy and equipment, data processing and other non-interest expenses were primarily due to higher operating costs associated with the Freedom Bank acquisition, while amortization expense increased $137,000 this quarter due to the core deposit intangible recorded for this acquisition. Non-interest expense was flat compared to the prior quarter as higher professional fees were offset by lower data processing costs.

    Income Tax Expense

    Landmark recorded income tax expense of $701,000 in the second quarter of 2023 compared to income tax expense of $639,000 in the second quarter of 2022 and $693,000 in the first quarter of 2023. The effective tax rate was 17.3% in the second quarter of 2023 compared to 17.4% in the second quarter of 2022 and 17.1% in the first quarter of 2023.

    Liquidity Highlights

    In addition to local retail, commercial and public fund deposits, the Company has access to multiple sources of brokered deposits that can be utilized for liquidity. Landmark also has diverse sources of liquidity available through both secured and unsecured borrowing lines of credit. At June 30, 2023, Landmark had collateral pledged to the Federal Home Loan Bank (“FHLB”) that would allow for an additional $129.0 million of FHLB borrowings. Additionally, investment securities were pledged to the Federal Reserve discount window that provides borrowing capacity with the Federal Reserve of $60.8 million. Landmark also had various other federal funds agreements, both secured and unsecured, with correspondent banks totaling approximately $30.0 million in available credit at June 30, 2023.

    As of June 30, 2023, Landmark had unpledged available-for-sale investment securities with a fair value of $73.8 million as well as approximately $94.6 million of pledged investment securities in excess of required levels. The average life of the Company’s investment portfolio is approximately 4.4 years and is projected to generate cash flow through maturities of $76.3 million over the next 12 months.

    Balance Sheet Highlights

    As of June 30, 2023, gross loans totaled $893.3 million, an increase of $23.5 million, or 10.8% annualized since March 31, 2023. During the quarter, loan growth was comprised of one-to-four family residential real estate (growth of $13.6 million), commercial (growth of $9.1 million) and agriculture loans (growth of $3.8 million), offset by a decline in construction and commercial real estate loans. Investment securities decreased $5.8 million, during the second quarter of 2023, while gross unrealized net losses on these investment securities increased from $26.5 million at March 31, 2023 to $30.0 million at June 30, 2023. Deposit balances decreased $13.1 million, or 4.0% on an annualized basis, to $1.3 billion at June 30, 2023. The decrease in deposits was mainly driven by declines in non-interest demand (decline of $39.6 million) and savings accounts (decline of $9.1 million) this quarter which was partially offset by higher money market, interest checking and certificate of deposit accounts, which increased in total by $26.5 million. Total borrowings, including Federal Home Loan Bank advances and repurchase agreements increased $31.9 million this quarter to fund the loan growth and offset the lower deposit balances. At June 30, 2023, the loan to deposits ratio was 68.9% compared to 66.4% in the prior quarter and 58.5% in the same period last year.

    Total deposits include estimated uninsured deposits of $193.1 million and $224.7 million as of June 30, 2023 and March 31, 2023, respectively. This represents approximately 15% of total deposits at June 30, 2023 and compares favorably with other similar community banking organizations. Over 96% of Landmark’s total deposits were considered core deposits at June 30, 2023. These deposit balances are from retail, commercial and public fund customers located in the markets where the Company has bank branch locations. Brokered deposits are considered non-core and totaled $41.2 million at June 30, 2023 compared to $11.3 million at March 31, 2023 and are utilized as an additional source of liquidity.

    Stockholders’ equity decreased slightly to $117.4 million (book value of $22.50 per share) as of June 30, 2023, from $117.7 million (book value of $22.57 per share) as of March 31, 2023, due to an increase in other comprehensive losses during the second quarter of 2023 related to the decline in the unrealized losses on investment securities. The ratio of equity to total assets decreased to 7.62% on June 30, 2023, from 7.74% on March 31, 2023.

    The allowance for credit losses totaled $10.4 million, or 1.17% of total gross loans on June 30, 2023, compared to $10.3 million, or 1.18% of total gross loans on March 31, 2023. Net loan charge-offs totaled $68,000 in the second quarter of 2023, compared to $47,000 during the first quarter of 2023 and $42,000 during the same quarter last year. The ratio of annualized net loan charge-offs to total average loans was 0.03% in the second quarter of 2023, 0.02% in the first quarter of 2023 and 0.03% in the same quarter last year. A provision for credit losses of $250,000 was made in the second quarter of 2023 as credit models factored in growth in our overall loan portfolio for this quarter. A provision for credit losses of $49,000 was made in the first quarter of 2023 related to unfunded loan commitments and held-to-maturity investments securities. No provision for credit losses was recorded in the second quarter of 2022.

    Non-performing loans totaled $2.8 million, or 0.31% of gross loans, while loans 30-89 days delinquent totaled $614,000, or 0.07% of gross loans, as of June 30, 2023. Real estate owned totaled $0.9 million at June 30, 2023.

    About Landmark

    Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 31 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park (2), Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

    Contacts:
    Michael E. Scheopner
    President and Chief Executive Officer
    Mark A. Herpich
    Chief Financial Officer
    (785) 565-2000
     

    Special Note Concerning Forward-Looking Statements

    This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including any changes in response to the recent failures of other banks; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the elimination of LIBOR and the development of a substitute; (x) the effects of severe weather, natural disasters, widespread disease or pandemics (including the COVID-19 pandemic), or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (unaudited)

    (Dollars in thousands) June 30,  March 31,  December 31,  September 30,  June 30, 
      2023  2023  2022  2022  2022 
    Assets                    
    Cash and cash equivalents $20,038  $23,764  $23,156  $49,234  $30,413 
    Interest-bearing deposits at other banks  8,336   8,586   9,084   8,844   8,360 
    Investment securities available-for-sale, at fair value:                    
    U.S. treasury securities  121,480   121,759   123,111   127,445   135,459 
    U.S. federal agency obligations  -   1,993   1,988   4,979   14,931 
    Municipal obligations, tax exempt  124,451   128,281   127,262   128,392   134,994 
    Municipal obligations, taxable  77,713   73,468   67,244   61,959   49,356 
    Agency mortgage-backed securities  160,734   164,669   169,701   161,331   151,893 
    Total investment securities available-for-sale  484,378   490,170   489,306   484,106   486,633 
    Investment securities held-to-maturity  3,496   3,467   3,524   -   - 
    Bank stocks, at cost  9,445   6,876   5,470   6,641   2,881 
    Loans:                    
    One-to-four family residential real estate  259,655   246,079   236,982   205,466   192,517 
    Construction and land  22,016   23,137   22,725   18,119   23,092 
    Commercial real estate  314,889   316,900   304,074   228,669   209,879 
    Commercial  181,424   172,331   173,415   144,582   137,929 
    Paycheck Protection Program (PPP)  -   21   21   410   652 
    Agriculture  84,345   80,499   84,283   86,114   78,240 
    Municipal  2,711   2,004   2,026   2,036   2,076 
    Consumer  28,219   28,835   26,664   25,911   25,531 
    Total gross loans  893,259   869,806   850,190   711,307   669,916 
    Net deferred loan (fees) costs and loans in process  (261)  2   (250)  (311)  229 
    Allowance for credit losses  (10,449)  (10,267)  (8,791)  (8,858)  (8,315)
    Loans, net  882,549   859,541   841,149   702,138   661,830 
    Loans held for sale, at fair value  3,900   1,839   2,488   2,741   6,264 
    Bank owned life insurance  37,764   37,541   37,323   32,672   32,483 
    Premises and equipment, net  24,027   24,241   24,327   20,628   20,679 
    Goodwill  32,199   32,199   32,199   17,532   17,532 
    Other intangible assets, net  3,612   3,809   4,006   36   52 
    Mortgage servicing rights  3,514   3,652   3,813   3,980   4,025 
    Real estate owned, net  934   934   934   1,288   1,288 
    Other assets  25,148   24,198   26,088   25,456   19,911 
    Total assets $1,539,340  $1,520,817  $1,502,867  $1,355,296  $1,292,351 
                         
    Liabilities and Stockholders’ Equity                    
    Liabilities:                    
    Deposits:                    
    Non-interest-bearing demand  382,410   421,971   410,142   347,942   343,107 
    Money market and checking  606,474   588,366   626,659   504,973   520,056 
    Savings  160,426   169,504   170,570   170,988   170,419 
    Certificates of deposit  131,661   114,189   93,278   93,234   97,885 
    Total deposits  1,280,971   1,294,030   1,300,649   1,117,137   1,131,467 
    Federal Home Loan Bank borrowings  76,185   37,804   8,200   74,900   - 
    Subordinated debentures  21,651   21,651   21,651   21,651   21,651 
    Other borrowings  22,293   28,750   38,402   16,349   6,223 
    Accrued interest and other liabilities  20,887   20,864   22,532   19,775   15,708 
    Total liabilities  1,421,987   1,403,099   1,391,434   1,249,812   1,175,049 
    Stockholders’ equity:                    
    Common stock  52   52   52   50   50 
    Additional paid-in capital  84,475   84,413   84,273   79,329   79,284 
    Retained earnings  55,498   53,231   52,174   58,114   56,662 
    Treasury stock, at cost  -   -   -   (1,040)  (538)
    Accumulated other comprehensive (loss) income  (22,672)  (19,978)  (25,066)  (30,969)  (18,156)
    Total stockholders’ equity  117,353   117,718   111,433   105,484   117,302 
    Total liabilities and stockholders’ equity $1,539,340  $1,520,817  $1,502,867  $1,355,296  $1,292,351 


    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Earnings (unaudited)

    (Dollars in thousands, except per share amounts) Three months ended,  Six months ended, 
      June 30,  March 31,  June 30,  June 30,  June 30, 
      2023  2023  2022  2023  2022 
    Interest income:                    
    Loans $12,623  $11,376  $7,156  $23,999  $14,347 
    Investment securities:                    
    Taxable  2,379   2,317   1,417   4,696   2,408 
    Tax-exempt  775   786   730   1,561   1,452 
    Interest-bearing deposits at banks  49   98   126   147   188 
    Total interest income  15,826   14,577   9,429   30,403   18,395 
    Interest expense:                    
    Deposits  3,452   2,539   358   5,991   553 
    Subordinated debentures  387   364   165   751   288 
    Borrowings  1,154   727   8   1,881   11 
    Total interest expense  4,993   3,630   531   8,623   852 
    Net interest income  10,833   10,947   8,898   21,780   17,543 
    Provision (benefit) for credit losses  250   49   -   299   (500)
    Net interest income after provision (benefit) for credit losses  10,583   10,898   8,898   21,481   18,043 
    Non-interest income:                    
    Fees and service charges  2,481   2,358   2,380   4,839   4,568 
    Gains on sales of loans, net  830   693   1,073   1,523   1,978 
    Bank owned life insurance  223   218   190   441   377 
    Other  295   226   153   521   436 
    Total non-interest income  3,829   3,495   3,796   7,324   7,359 
    Non-interest expense:                    
    Compensation and benefits  5,572   5,542   4,953   11,114   9,728 
    Occupancy and equipment  1,394   1,369   1,177   2,763   2,410 
    Data processing  431   589   362   1,020   702 
    Amortization of mortgage servicing rights and other intangibles  472   461   335   933   651 
    Professional fees  607   491   415   1,098   866 
    Acquisition costs  -   -   221   -   221 
    Other  1,873   1,891   1,559   3,764   3,282 
    Total non-interest expense  10,349   10,343   9,022   20,692   17,860 
    Earnings before income taxes  4,063   4,050   3,672   8,113   7,542 
    Income tax expense  701   693   639   1,394   1,376 
    Net earnings $3,362  $3,357  $3,033  $6,719  $6,166 
                         
    Net earnings per share (1)                    
    Basic $0.64  $0.64  $0.58  $1.29  $1.18 
    Diluted  0.64   0.64   0.58   1.29   1.17 
    Dividends per share (1)  0.21   0.21   0.20   0.42   0.40 
    Shares outstanding at end of period (1)  5,215,575   5,215,575   5,225,161   5,215,575   5,225,161 
    Weighted average common shares outstanding - basic (1)  5,215,575   5,213,125   5,237,837   5,214,357   5,242,558 
    Weighted average common shares outstanding - diluted (1)  5,219,550   5,220,688   5,252,546   5,219,760   5,260,313 
                         
    Tax equivalent net interest income $11,021  $11,144  $9,094  $22,165  $17,934 


    (1) Share and per share values at or for the periods ended June 30, 2022 have been adjusted to give effect to the 5% stock dividend paid during December 2022.

    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Select Ratios and Other Data (unaudited)

    (Dollars in thousands, except per share amounts) As of or for the
    three months ended,
      As of or for the
    six months ended,
     
      June 30,  March 31,  June 30,  June 30,  June 30, 
      2023  2023  2022  2023  2022 
    Performance ratios:                    
    Return on average assets (1)  0.88%  0.90%  0.93%  0.89%  0.95%
    Return on average equity (1)  11.52%  12.04%  10.04%  11.77%  9.81%
    Net interest margin (1)(2)  3.21%  3.31%  3.05%  3.26%  3.02%
    Effective tax rate  17.3%  17.1%  17.4%  17.2%  18.2%
    Efficiency ratio (3)  69.2%  70.1%  69.1%  69.7%  70.9%
    Non-interest income to total income (3)  26.1%  24.2%  29.9%  25.2%  29.2%
                         
    Average balances:                    
    Investment securities $495,456  $499,538  $477,035  $497,486  $449,667 
    Loans  873,910   850,331   653,013   862,186   644,569 
    Assets  1,525,589   1,511,077   1,307,112   1,518,373   1,306,446 
    Interest-bearing deposits  882,726   872,900   791,257   877,841   791,803 
    FHLB advances and other borrowings  77,176   66,868   -   61,285   - 
    Subordinated debentures  21,651   21,651   21,651   21,651   21,651 
    Repurchase agreements  16,909   27,548   6,981   22,199   6,903 
    Stockholders’ equity $117,038  $113,115   121,147  $115,087   126,757 
                         
    Average tax equivalent yield/cost (1):                    
    Investment securities  2.70%  2.68%  1.97%  2.69%  1.90%
    Loans  5.80%  5.43%  4.40%  5.62%  4.49%
    Total interest-bearing assets  4.66%  4.39%  3.23%  4.53%  3.16%
    Interest-bearing deposits  1.57%  1.18%  0.18%  1.38%  0.14%
    FHLB advances and other borrowings  5.34%  5.09%  0.00%  5.25%  0.00%
    Subordinated debentures  7.17%  6.82%  3.06%  6.99%  2.68%
    Repurchase agreements  3.01%  2.36%  0.46%  2.61%  0.32%
    Total interest-bearing liabilities  2.01%  1.52%  0.26%  1.77%  0.21%
                         
    Capital ratios:                    
    Equity to total assets  7.62%  7.74%  9.08%        
    Tangible equity to tangible assets (3)  5.42%  5.50%  7.82%        
    Book value per share $22.50  $22.57  $22.45         
    Tangible book value per share (3) $15.63  $15.67  $19.08         
                         
    Rollforward of allowance for credit losses (loans):                    
    Beginning balance $10,267  $8,791  $8,357  $8,791  $8,775 
    Adoption of CECL  -   1,523   -   1,523   - 
    Charge-offs  (158)  (108)  (76)  (266)  (129)
    Recoveries  90   61   34   151   169 
    Provision (benefit) for credit losses  250   -   -   250   (500)
    Ending balance $10,449  $10,267  $8,315  $10,449  $8,315 
                         
    Non-performing assets:                    
    Non-accrual loans $2,784  $3,311  $4,887         
    Accruing loans over 90 days past due  -   -   -         
    Real estate owned  934   934   1,288         
    Total non-performing assets $3,718  $4,245  $6,175         
                         
    Loans 30-89 days delinquent $614  $1,490  $877         
                         
    Other ratios:                    
    Loans to deposits  68.90%  66.42%  58.49%        
    Loans 30-89 days delinquent and still accruing to gross loans outstanding  0.07%  0.17%  0.13%        
    Total non-performing loans to gross loans outstanding  0.31%  0.38%  0.73%        
    Total non-performing assets to total assets  0.24%  0.28%  0.48%        
    Allowance for credit losses to gross loans outstanding  1.17%  1.18%  1.24%        
    Allowance for credit losses to gross loans outstanding excluding PPP loans  1.17%  1.18%  1.24%        
    Allowance for credit losses to total non-performing loans  375.32%  310.09%  170.15%        
    Net loan charge-offs to average loans (1)  0.03%  0.02%  0.03%  0.03%  -0.01%


    (1) Information is annualized.
    (2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
    (3) Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

    LANDMARK BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Finacials Measures (unaudited)

    (Dollars in thousands, except per share amounts) As of or for the
    three months ended,
      As of or for the
    six months ended,
     
      June 30,  March 31,  June 30,  June 30,  June 30, 
      2023  2023  2022  2023  2022 
                    
    Non-GAAP earnings reconciliation:                    
    Net earnings $3,362  $3,357  $3,033  $6,719  $6,166 
    Add: acquisition costs  -   -   221   -   221 
    Less: income tax expense (effective tax rate of 24.5%)  -   -   (54)  -   (54)
    Adjusted net earnings (A) $3,362  $3,357  $3,200  $6,719  $6,333 
                         
    Weighted average common shares outstanding - diluted (B)  5,219,550   5,220,688   5,252,546   5,219,760   5,260,313 
                         
    Adjusted diluted net earnings per share (A/B) $0.64  $0.64  $0.61  $1.29  $1.20 
    Adjusted return on average assets (1)  0.88%  0.90%  0.98%  0.89%  0.98%
    Adjusted return on average equity (1)  11.52%  12.04%  10.59%  11.77%  10.07%
                         
    (1) Information is annualized.                    
                         
                         
    Non-GAAP financial ratio reconciliation:                    
    Total non-interest expense $10,349  $10,343  $9,022  $20,692  $17,860 
    Less: foreclosure and real estate owned expense  (3)  (17)  (9)  (20)  (32)
    Less: amortization of other intangibles  (198)  (197)  (15)  (395)  (32)
    Less: acquisition costs  -   -   (221)  -   (221)
    Adjusted non-interest expense (A)  10,148   10,129   8,777   20,277   17,575 
                         
    Net interest income (B)  10,833   10,947   8,898   21,780   17,543 
                         
    Non-interest income  3,829   3,495   3,796   7,324   7,359 
    Less: losses (gains) on sales of investment securities, net  -   -   -   -   - 
    Less: gains on sales of premises and equipment and foreclosed assets  -   (1)  -   (1)  (114)
    Adjusted non-interest income (C) $3,829  $3,494  $3,796  $7,323  $7,245 
                         
    Efficiency ratio (A/(B+C))  69.2%  70.1%  69.1%  69.7%  70.9%
    Non-interest income to total income (C/(B+C))  26.1%  24.2%  29.9%  25.2%  29.2%
                         
    Total stockholders’ equity $117,353  $117,718  $117,302         
    Less: goodwill and other intangible assets  (35,811)  (36,008)  (17,584)        
    Tangible equity (D) $81,542  $81,710  $99,718         
                         
    Total assets $1,539,340  $1,520,817  $1,292,351         
    Less: goodwill and other intangible assets  (35,811)  (36,008)  (17,584)        
    Tangible assets (E) $1,503,529  $1,484,809  $1,274,767         
                         
    Tangible equity to tangible assets (D/E)  5.42%  5.50%  7.82%        
                         
    Shares outstanding at end of period (F)  5,215,575   5,215,575   5,225,161         
                         
    Tangible book value per share (D/F) $15.63  $15.67  $19.08         


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