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Landmark Bancorp, Inc. Announces Fourth Quarter Earnings Per Share of $0.48
Source: Nasdaq GlobeNewswire / 31 Jan 2024 15:30:00 America/Chicago
Declares Cash Dividend of $0.21 per Share
Manhattan, KS, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.48 for the three months ended December 31, 2023, compared to $0.53 per share in the third quarter of 2023 and $0.22 per share in the same quarter last year. Net earnings for the fourth quarter of 2023 amounted to $2.6 million, compared to $2.9 million in the prior quarter and $1.2 million for the fourth quarter of 2022. For the three months ended December 31, 2023, the return on average assets was 0.67%, the return on average equity was 9.39%, and the efficiency ratio was 71.9%.
For the year ended December 31, 2023, diluted earnings per share totaled $2.23 compared to $1.79 during 2022. Net earnings for 2023 totaled $12.2 million, compared to $9.9 million in 2022 or an increase of 23.9% which was mainly driven by increased net interest income and flat expenses. For the year ended December 31, 2023, the return on average assets was 0.80% and the return on average equity was 10.70%.
In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “While the banking industry has been challenged this year through the third quarter with rapidly rising interest rates, in the fourth quarter the Federal Reserve started to stabilize short-term rates and long-term interest rates declined. This enabled us to grow deposits, reduce investment securities and fund continued loan growth. We also reduced our reliance on borrowed funds as we sold some lower rate investment securities at a pre-tax loss of $1.2 million and reduced higher cost funding sources. Lower rates overall effectively increased our book value per share to $23.17 while also increasing equity to assets. Compared to the third quarter of 2023, total gross loans increased by $11.2 million, or 4.8% on an annualized basis mainly due to growth in residential mortgage and agriculture loans. Deposits also increased $6.8 million during the fourth quarter of 2023. Our loan to deposit ratio totaled 71.3% in the fourth quarter reflecting ample liquidity for future loan growth. Net interest income this quarter totaled $10.9 million and an increase of 2.4% from the prior quarter, as growth in interest income on loans outpaced increased interest costs on deposits. Our net interest margin increased to 3.11% during the fourth quarter of 2023 from 3.06% in the prior quarter. Non-interest income decreased $1.4 million compared to the third quarter of 2023 mostly due to the securities losses mentioned above while non-interest expense declined due to acquisition costs incurred last year in the fourth quarter that did not reoccur.”
Mr. Scheopner continued, “The credit quality of our loan portfolio remains solid. Landmark recorded net loan charge-offs of $362,000 in the fourth quarter of 2023 compared to net loan charge-offs of $67,000 in the fourth quarter of 2022 and net loan recoveries of $521,000 in the third quarter of 2023. The ratio of net loan charge-offs to loans totaled 0.15% this quarter and remains low. Non-accrual loans totaled $2.4 million, or 0.25%, of gross loans at December 31, 2023 and declined $2.0 million from the prior quarter while the balance of loans past due 30 to 89 days remained low at $1.6 million, or 0.17%, of gross loans at December 31, 2023. The allowance for credit losses totaled $10.6 million at December 31, 2023, or 1.12% of period end gross loans, while our equity to assets ratio totaled 8.13%.”
Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid February 28, 2024, to common stockholders of record as of the close of business on February 14, 2024. During the fourth quarter of 2023 the Company also distributed a 5% stock dividend to common shareholders representing the 23rd consecutive year the Board of Directors has declared a 5% stock dividend.
Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, February 1, 2024. Investors may participate via telephone by dialing (833) 470-1428 and using access code 731415. A replay of the call will be available through February 29, 2024, by dialing (866) 813-9403 and using access code 252619.
SUMMARY OF FOURTH QUARTER RESULTS
Net Interest Income
Net interest income in the fourth quarter of 2023 amounted to $10.9 million representing an increase of $260,000, or 2.4%, compared to the previous quarter. This increase in net interest income was due mainly to growth in interest income on loans which was partially offset by higher interest expense on deposits. The net interest margin increased 5 basis points to 3.11% during the fourth quarter. Compared to the previous quarter, interest income on loans increased $692,000, or 5.1%, to $14.2 million due to both higher rates and balances while the average tax-equivalent yield on the loan portfolio increased 11 basis points to 6.04%. Interest expense on deposits increased $495,000 in the fourth 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 in the fourth quarter to 2.13% compared to 1.93% in the prior quarter. Interest on borrowed funds decreased $63,000 mainly due to lower borrowed balances.
Non-Interest Income
Non-interest income totaled $2.3 million for the fourth quarter of 2023, a decrease of $558,000, or 19.8%, compared to the same period last year and a decrease of $1.4 million, or 38.3%, from the previous quarter. The decrease in non-interest income during the fourth quarter of 2023 was primarily due to losses on sales of investment securities, which increased from $750,000 in the fourth quarter of 2022 to $1.2 million in the fourth quarter of 2023. These losses in the current quarter were related to the sale of lower yielding investment securities. The third quarter of 2023 did not include any sales of investment securities. Gains on sales of one-to-four family residential real estate loans declined $162,000 from the same period last year and $236,000 from the prior quarter, due to lower fixed rate mortgage loan originations while fees and service charges increased 7.4% compared to the same period last year.
Non-Interest Expense
During the fourth quarter of 2023, non-interest expense totaled $10.6 million, a decrease of $3.4 million, or 24.3%, over the same period in 2023 and a decrease of $167,000, or 1.6%, compared to the prior quarter. The decrease in non-interest expense compared to the fourth quarter of 2022 was primarily due to acquisition costs of $3.0 million in the 4th quarter of 2022 that did not reoccur this year. Also contributing to the decline in other non-interest expense in the fourth quarter 2023 were lower losses associated with our captive insurance subsidiary and a decline in the valuation allowance on other real estate owned which declined from $354,000 in the fourth quarter of 2022 to $6,000 in the fourth quarter of 2023. Compensation and benefits declined this quarter compared to the prior quarter while data processing costs were relatively flat.
Income Tax Expense
Landmark recorded an income tax benefit of $111,000 in the fourth quarter of 2023 compared to an income tax benefit of $466,000 in the fourth quarter of 2022 and income tax expense of $671,000 in the third quarter of 2023. The effective tax rate was (4.4%) in the fourth quarter of 2023 compared to (62.5%) in the fourth quarter of 2022 and 18.9% in the third quarter of 2023. The fourth quarter of 2023 included the recognition of $517,000 of previously unrecognized tax benefits compared to the recognition of $465,000 of previously unrecognized tax benefits in the fourth quarter of 2022, which reduced the effective tax rate in the periods.
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 December 31, 2023, Landmark had collateral pledged to the Federal Home Loan Bank (“FHLB”) that would allow for an additional $153.1 million of FHLB borrowings. Additionally, investment securities were pledged to the Federal Reserve discount window that provides borrowing capacity with the Federal Reserve of $60.7 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 December 31, 2023.
As of December 31, 2023, Landmark had unpledged available-for-sale investment securities with a fair value of $75.0 million as well as approximately $44.0 million of pledged investment securities in excess of required levels. The average life of the Company’s investment portfolio is approximately 4.2 years and is projected to generate cash flow through maturities of $83.4 million over the next 12 months.
Balance Sheet Highlights
As of December 31, 2023, gross loans totaled $948.7 million, an increase of $11.2 million, or 4.8% annualized since September 30, 2023. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $13.0 million), agriculture (growth of $5.1 million) and municipal (growth of $1.3 million). The increase in one-to-four family residential real estate loans is primarily related to continued demand in adjustable-rate mortgage loans which are retained in our portfolio. Investment securities decreased $4.1 million, during the fourth quarter of 2023, while pre-tax unrealized net losses on these investment securities decreased from $42.8 million at September 30, 2023 to $21.9 million at December 31, 2023. During the fourth quarter of 2023, approximately $26.9 million of U.S. treasury securities were sold at a pre-tax loss of $1.2 million. The proceeds from the sale of the low yield investment securities were used to reduce higher cost FHLB borrowings.
Deposit balances increased $6.8 million, or 2.1% on an annualized basis, to $1.3 billion at December 31, 2023. The increase in deposits was mainly driven by increases in money market and checking (increase of $25.6 million) and certificate of deposit accounts (increase of $13.9 million) in the fourth quarter but partly offset by lower non-interest-bearing demand and savings accounts, which decreased in total by $32.7 million. The increase in money market and checking accounts was mainly driven by seasonal growth in public fund deposit account balances. Total borrowings, including FHLB advances and repurchase agreements decreased $17.8 million this quarter. At December 31, 2023, the loan to deposits ratio was 71.3% compared to 70.8% in the prior quarter and 64.7% in the same period last year.
Estimated uninsured deposits, excluding collateralized public fund deposits, totaled $197.2 million and $202.8 million as of December 31, 2023 and September 30, 2023, respectively. This represents approximately 15% of total deposits at December 31, 2023 and compares favorably with other similar community banking organizations. Over 93% of Landmark’s total deposits were considered core deposits at December 31, 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 $83.2 million at December 31, 2023 compared to $72.4 million at September 30, 2023 and are utilized as an additional source of liquidity.
Stockholders’ equity increased to $126.9 million (book value of $23.17 per share) as of December 31, 2023, from $109.6 million (book value of $19.99 per share) as of September 30, 2023, primarily due to a decrease in other comprehensive losses during the fourth quarter of 2023 related to lower market interest rates which decreased the unrealized losses on the Company’s investment securities portfolio. The ratio of equity to total assets increased to 8.13% on December 31, 2023, from 7.03% on September 30, 2023.
The allowance for credit losses totaled $10.6 million, or 1.12% of total gross loans on December 31, 2023, compared to $11.0 million, or 1.17% of total gross loans on September 30, 2023. Net loan charge-offs totaled $362,000 in the fourth quarter of 2023, compared to $67,000 during the same quarter last year and net loan recoveries of $521,000 during the third quarter of 2023. The ratio of annualized net loan charge-offs to total average loans was 0.15% in the fourth quarter of 2023 and 0.03% in the fourth quarter of 2022, while the ratio of annualized net loan recoveries to total average loans was 0.23% in the third quarter of 2023. The net loan recoveries in the third quarter of 2023 included $626,000 related to a construction loan previously charged-off in 2011. A provision for credit losses of $50,000 was made in the fourth quarter of 2023 related to an increase in unfunded loan commitments. No provision for credit losses was recorded in the fourth quarter of 2022 or the third quarter of 2023.
Non-performing loans totaled $2.4 million, or 0.25% of gross loans and decreased $2.0 million from the prior quarter, while loans 30-89 days delinquent totaled $1.6 million, or 0.17% of gross loans, as of December 31, 2023. Real estate owned totaled $0.9 million at December 31, 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 and the recent and potential additional rate increases by the Federal Reserve; (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 Israeli-Palestinian conflict and the 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) December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Assets Cash and cash equivalents $ 27,101 $ 23,821 $ 20,038 $ 23,764 $ 23,156 Interest-bearing deposits at other banks 4,918 5,904 8,336 8,586 9,084 Investment securities available-for-sale, at fair value: U.S. treasury securities 95,667 118,341 121,480 121,759 123,111 U.S. federal agency obligations - - - 1,993 1,988 Municipal obligations, tax exempt 120,623 115,706 124,451 128,281 127,262 Municipal obligations, taxable 79,083 73,993 77,713 73,468 67,244 Agency mortgage-backed securities 157,396 148,817 160,734 164,669 169,701 Total investment securities available-for-sale 452,769 456,857 484,378 490,170 489,306 Investment securities held-to-maturity 3,555 3,525 3,496 3,467 3,524 Bank stocks, at cost 8,123 8,009 9,445 6,876 5,470 Loans: One-to-four family residential real estate 302,544 289,571 259,655 246,079 236,982 Construction and land 21,090 21,657 22,016 23,137 22,725 Commercial real estate 320,962 323,427 314,889 316,900 304,074 Commercial 180,942 185,831 181,424 172,331 173,415 Paycheck Protection Program (PPP) - - - 21 21 Agriculture 89,680 84,560 84,345 80,499 84,283 Municipal 4,507 3,200 2,711 2,004 2,026 Consumer 28,931 29,180 28,219 28,835 26,664 Total gross loans 948,656 937,426 893,259 869,806 850,190 Net deferred loan (fees) costs and loans in process (429 ) (396 ) (261 ) 2 (250 ) Allowance for credit losses (10,608 ) (10,970 ) (10,449 ) (10,267 ) (8,791 ) Loans, net 937,619 926,060 882,549 859,541 841,149 Loans held for sale, at fair value 853 1,857 3,900 1,839 2,488 Bank owned life insurance 38,333 38,090 37,764 37,541 37,323 Premises and equipment, net 19,709 23,911 24,027 24,241 24,327 Goodwill 32,377 32,377 32,199 32,199 32,199 Other intangible assets, net 3,241 3,414 3,612 3,809 4,006 Mortgage servicing rights 3,158 3,368 3,514 3,652 3,813 Real estate owned, net 928 934 934 934 934 Other assets 28,988 29,459 25,148 24,198 26,088 Total assets $ 1,561,672 $ 1,557,586 $ 1,539,340 $ 1,520,817 $ 1,502,867 Liabilities and Stockholders’ Equity Liabilities: Deposits: Non-interest-bearing demand 367,103 395,046 382,410 421,971 410,142 Money market and checking 612,243 586,651 606,474 588,366 626,659 Savings 152,382 157,112 160,426 169,504 170,570 Certificates of deposit 183,154 169,225 131,661 114,189 93,278 Total deposits 1,314,882 1,308,034 1,280,971 1,294,030 1,300,649 FHLB and other borrowings 64,662 74,567 76,185 37,804 8,200 Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Repurchase agreements 12,714 20,592 22,293 28,750 38,402 Accrued interest and other liabilities 20,849 23,185 20,887 20,864 22,532 Total liabilities 1,434,758 1,448,029 1,421,987 1,403,099 1,391,434 Stockholders’ equity: Common stock 55 52 52 52 52 Additional paid-in capital 89,208 84,568 84,475 84,413 84,273 Retained earnings 54,282 57,280 55,498 53,231 52,174 Treasury stock, at cost (75 ) - - - - Accumulated other comprehensive (loss) income (16,556 ) (32,343 ) (22,672 ) (19,978 ) (25,066 ) Total stockholders’ equity 126,914 109,557 117,353 117,718 111,433 Total liabilities and stockholders’ equity $ 1,561,672 $ 1,557,586 $ 1,539,340 $ 1,520,817 $ 1,502,867 LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)(Dollars in thousands, except per share amounts) Three months ended, Year ended, December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Interest income: Loans $ 14,223 $ 13,531 $ 11,101 $ 51,753 $ 33,473 Investment securities: Taxable 2,453 2,445 2,267 9,594 6,414 Tax-exempt 761 772 786 3,094 3,018 Interest-bearing deposits at banks 49 46 89 242 321 Total interest income 17,486 16,794 14,243 64,683 43,226 Interest expense: Deposits 4,879 4,384 1,452 15,254 2,776 FHLB and other borrowings 1,203 1,251 478 4,048 584 Subordinated debentures 422 417 318 1,590 840 Repurchase agreements 96 116 109 499 146 Total interest expense 6,600 6,168 2,357 21,391 4,346 Net interest income 10,886 10,626 11,886 43,292 38,880 Provision for credit losses 50 - - 349 - Net interest income after provision for credit losses 10,836 10,626 11,886 42,943 38,880 Non-interest income: Fees and service charges 2,763 2,618 2,572 10,220 9,651 Gains on sales of loans, net 255 491 417 2,269 3,444 Bank owned life insurance 242 230 214 913 780 Losses on sales of investment securities, net (1,246 ) - (750 ) (1,246 ) (1,103 ) Other 240 313 359 1,074 928 Total non-interest income 2,254 3,652 2,812 13,230 13,700 Non-interest expense: Compensation and benefits 5,756 5,811 5,626 22,681 20,405 Occupancy and equipment 1,429 1,373 1,373 5,565 5,118 Data processing 462 458 495 1,940 1,580 Amortization of mortgage servicing rights and other intangibles 437 474 481 1,844 1,446 Professional fees 730 624 554 2,452 1,892 Acquisition costs - - 3,043 - 3,398 Other 1,748 1,989 2,380 7,501 7,431 Total non-interest expense 10,562 10,729 13,952 41,983 41,270 Earnings before income taxes 2,528 3,549 746 14,190 11,310 Income tax expense (111 ) 671 (466 ) 1,954 1,432 Net earnings $ 2,639 $ 2,878 $ 1,212 $ 12,236 $ 9,878 Net earnings per share (1) Basic $ 0.48 $ 0.53 $ 0.22 $ 2.23 $ 1.80 Diluted 0.48 0.53 0.22 2.23 1.79 Dividends per share (1) 0.20 0.20 0.19 0.80 0.76 Shares outstanding at end of period (1) 5,477,595 5,481,805 5,473,894 5,477,595 5,473,894 Weighted average common shares outstanding - basic (1) 5,481,119 5,479,909 5,475,433 5,477,700 5,492,286 Weighted average common shares outstanding - diluted (1) 5,481,119 5,482,633 5,489,915 5,480,800 5,508,053 Tax equivalent net interest income $ 11,017 $ 10,809 $ 12,089 $ 44,040 $ 39,680 (1 ) Share and per share values at or for the periods ended September 30, 2023 and December 31, 2022 have been adjusted to give effect to the 5% stock dividend paid during December 2023. 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
year ended,December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Performance ratios: Return on average assets (1) 0.67 % 0.74 % 0.32 % 0.80 % 0.73 % Return on average equity (1) 9.39 % 9.87 % 4.50 % 10.70 % 8.25 % Net interest margin (1)(2) 3.11 % 3.06 % 3.53 % 3.17 % 3.21 % Effective tax rate -4.4 % 18.9 % -62.5 % 13.8 % 12.7 % Efficiency ratio (3) 71.9 % 73.8 % 66.8 % 71.2 % 69.4 % Non-interest income to total income (3) 24.3 % 25.6 % 23.1 % 25.1 % 27.4 % Average balances: Investment securities $ 463,763 $ 486,706 $ 504,495 $ 486,268 $ 474,732 Loans 934,333 906,289 832,285 891,487 702,247 Assets 1,555,742 1,549,724 1,507,454 1,535,694 1,357,479 Interest-bearing deposits 910,610 902,727 850,041 892,373 804,146 FHLB and other borrowings 84,408 89,441 43,870 74,210 15,061 Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Repurchase agreements 13,785 15,387 31,533 18,361 13,239 Stockholders’ equity $ 111,560 $ 115,644 $ 106,782 $ 114,339 119,792 Average tax equivalent yield/cost (1): Investment securities 2.86 % 2.77 % 2.56 % 2.76 % 2.15 % Loans 6.04 % 5.93 % 5.29 % 5.81 % 4.77 % Total interest-bearing assets 4.97 % 4.81 % 4.22 % 4.71 % 3.56 % Interest-bearing deposits 2.13 % 1.93 % 0.68 % 1.71 % 0.35 % FHLB and other borrowings 5.65 % 5.55 % 4.32 % 5.45 % 3.88 % Subordinated debentures 7.73 % 7.64 % 5.83 % 7.34 % 3.88 % Repurchase agreements 2.79 % 2.97 % 1.37 % 2.72 % 1.10 % Total interest-bearing liabilities 2.54 % 2.38 % 0.99 % 2.13 % 0.51 % Capital ratios: Equity to total assets 8.13 % 7.03 % 7.41 % Tangible equity to tangible assets (3) 5.98 % 4.85 % 5.13 % Book value per share $ 23.17 $ 19.99 $ 20.36 Tangible book value per share (3) $ 16.67 $ 13.46 $ 13.74 Rollforward of allowance for credit losses (loans): Beginning balance $ 10,970 $ 10,449 $ 8,858 $ 8,791 $ 8,775 Adoption of CECL - - - 1,523 - Charge-offs (442 ) (142 ) (101 ) (850 ) (336 ) Recoveries 80 663 34 894 352 Provision for credit losses for loans - - - 250 - Ending balance $ 10,608 $ 10,970 $ 8,791 $ 10,608 $ 8,791 Allowance for unfunded loan commitments $ 250 $ 200 $ 170 Non-performing assets: Non-accrual loans $ 2,391 $ 4,440 $ 3,326 Accruing loans over 90 days past due - - - Real estate owned 928 934 934 Total non-performing assets $ 3,319 $ 5,374 $ 4,260 Loans 30-89 days delinquent $ 1,582 $ 6,173 $ 738 Other ratios: Loans to deposits 71.31 % 70.80 % 64.67 % Loans 30-89 days delinquent and still accruing to gross loans outstanding 0.17 % 0.66 % 0.09 % Total non-performing loans to gross loans outstanding 0.25 % 0.47 % 0.39 % Total non-performing assets to total assets 0.21 % 0.35 % 0.28 % Allowance for credit losses to gross loans outstanding 1.12 % 1.17 % 1.03 % Allowance for credit losses to total non-performing loans 443.66 % 247.07 % 264.31 % Net loan charge-offs to average loans (1) 0.15 % -0.23 % 0.03 % 0.00 % 0.00 % (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
year ended,December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Non-GAAP financial ratio reconciliation: Total non-interest expense $ 10,562 $ 10,729 $ 13,952 $ 41,983 $ 41,270 Less: foreclosure and real estate owned expense (40 ) (1 ) (393 ) (61 ) (457 ) Less: amortization of other intangibles (174 ) (196 ) (200 ) (765 ) (248 ) Less: acquisition costs - - (3,043 ) - (3,398 ) Adjusted non-interest expense (A) 10,348 10,532 10,316 41,157 37,167 Net interest income (B) 10,886 10,626 11,886 43,292 38,880 Non-interest income 2,254 3,652 2,812 13,230 13,700 Less: losses (gains) on sales of investment securities, net 1,246 - 750 1,246 1,103 Less: gains on sales of premises and equipment and foreclosed assets - (1 ) - (1 ) (114 ) Adjusted non-interest income (C) $ 3,500 $ 3,651 $ 3,562 $ 14,475 $ 14,689 Efficiency ratio (A/(B+C)) 71.9 % 73.8 % 66.8 % 71.2 % 69.4 % Non-interest income to total income (C/(B+C)) 24.3 % 25.6 % 23.1 % 25.1 % 27.4 % Total stockholders’ equity $ 126,914 $ 109,557 $ 111,433 Less: goodwill and other intangible assets (35,618 ) (35,791 ) (36,205 ) Tangible equity (D) $ 91,296 $ 73,766 $ 75,228 Total assets $ 1,561,672 $ 1,557,586 $ 1,502,867 Less: goodwill and other intangible assets (35,618 ) (35,791 ) (36,205 ) Tangible assets (E) $ 1,526,054 $ 1,521,795 $ 1,466,662 Tangible equity to tangible assets (D/E) 5.98 % 4.85 % 5.13 % Shares outstanding at end of period (F) 5,477,595 5,481,805 5,473,894 Tangible book value per share (D/F) $ 16.67 $ 13.46 $ 13.74 
