On May 1, 2024, Landmark Bancorp Inc (LARK, Financial) released its 8-K filing, revealing a nuanced financial performance for the first quarter ended March 31, 2024. The company reported diluted earnings per share (EPS) of $0.51, a decrease from $0.61 in the same quarter last year but an improvement over the $0.48 from the previous quarter. Net earnings were $2.8 million, compared to $3.4 million year-over-year and $2.6 million sequentially. The return on average assets and equity were 0.72% and 8.88% respectively, with an efficiency ratio of 73.0%.
Company Overview
Landmark Bancorp Inc, headquartered in Manhattan, Kansas, operates as the bank holding company for Landmark National Bank. Focused on providing quality financial and banking services, the company primarily engages in attracting deposits and offering loans across diverse sectors including residential real estate, commercial, and agriculture, complemented by investment in securities.
Quarterly Financial Performance
The first quarter saw a slight decline in net interest income to $10.7 million, down by 1.3% from the previous quarter, primarily due to increased interest costs on deposits. However, the net interest margin saw a minor increase to 3.12%. Non-interest income rose significantly by 50.8% from the prior quarter, reaching $3.4 million, mainly due to the absence of losses on security sales that occurred in the fourth quarter of 2023. Non-interest expense was relatively stable, showing a slight decrease from the previous quarter.
President and CEO Abby Wendel commented on the results, highlighting solid loan growth and controlled expenses.
We are pleased with our first quarter results, which included continued solid loan growth, controlled expenses, and good credit quality,"Wendel stated.
Balance Sheet and Income Statement Highlights
The balance sheet reflected a healthy growth in gross loans, which totaled $964.0 million, marking a 6.5% annualized increase since the end of 2023. The loan to deposits ratio stood at 73.6%, indicating ample liquidity for future loan growth. The allowance for credit losses was slightly up at $10.9 million or 1.13% of total gross loans.
On the liabilities side, total deposits decreased slightly to $1.3 billion, driven by seasonal declines in money market and checking accounts. The company also reported a modest decrease in stockholders' equity to $126.7 million, primarily due to increases in other comprehensive losses influenced by higher market interest rates.
Dividend and Forward Outlook
Reflecting confidence in its financial stability, Landmark’s Board of Directors declared a cash dividend of $0.21 per share, marking a 5% increase. This dividend is payable on May 29, 2024, to shareholders of record as of May 15, 2024.
As Landmark Bancorp Inc navigates through 2024, the mixed results of the first quarter demonstrate resilience amidst challenges such as increased deposit costs and fluctuating interest rates. The company's strategic focus on loan growth and expense management, coupled with robust credit quality, positions it to potentially enhance shareholder value in the upcoming quarters.
For detailed financial figures and further information, investors and interested parties are encouraged to refer to the official 8-K filing.
Explore the complete 8-K earnings release (here) from Landmark Bancorp Inc for further details.
