LARK

Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Head of Corporate Strategy and Development and Investor Relations - Shelley Reed President and Chief Executive Officer - Abigail Wendel Chief Financial Officer - Mark Herpich Chief Credit Officer - Raymond McLanahan Operator: Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Landmark Bancorp, Inc. Second Quarter Earnings Call. [Operator Instructions] I would now like to turn the conference over to Shelley Reed, Head of Investor Relations. You may begin. Shelley Reed: Thanks, Carly. Good morning, everyone, and welcome to Landmark Bancorp's Second Quarter Earnings Conference Call. My name is Shelley Reed. I'm the Head of Corporate Strategy and Development and Investor Relations. Joining me today are several members of our executive leadership team, including our President and CEO, Abby Wendel; Chief Financial Officer, Mark Herpich; and Chief Credit Officer, Raymond McLanahan. During today's call, we may make statements that constitute projections, plans, objectives, future performance, beliefs, expectations or similar forward-looking statements. These statements involve risks and uncertainties, which should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. We caution that such statements are predictions only and that actual results may differ materially. We include more information on these factors in our earnings release furnished with our Form 8-K yesterday as well as our Form 10-K and Form 10-Q filings and subsequent filings with the SEC. Additionally, all statements, 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. Also, our remarks may reference certain non-GAAP financial metrics we believe provide useful information to investors. Additional disclosures regarding non-GAAP metrics, including the reconciliation of those non-GAAP metrics to GAAP, are contained in our earnings release, which we filed yesterday with the SEC and are also available on the Investors section of our website at banklandmark.com. We caution that these non-GAAP financial metrics should not be viewed as a substitute for operating results determined in accordance with GAAP as contained in our earnings release and other filings with the SEC. A replay of this call will be available through August 6, 2026. Access information can be found in our earnings release. I will now turn the conference call over to our President and Chief Executive Officer, Abby Wendel. Abigail Wendel: Thanks, Shelley. Good morning, everyone, and thank you for joining us today. I am pleased to report that Landmark delivered strong second quarter 2026 financial results. Highlights from these results included record revenue and increased profitability driven by continued execution of our disciplined growth strategy. Second quarter revenue increased to a record $19.2 million, driven by higher net interest income and increased gain on sale revenue. Earnings per share increased to $0.88, return on average assets improved to 1.35% and return on average equity increased to 13.23%. I am pleased with these results, which reflect the strength of our relationship-based banking model, disciplined pricing strategies and prudent balance sheet management. Landmark's commercial lending teams found opportunities to win new and expand existing customer relationships within markets we serve in the second quarter. Their efforts resulted in positive loan growth in commercial and agriculture-related portfolios. Compared to the first quarter of 2026, commercial loan payoffs moderated during the second quarter, also contributing to the quarter-over-quarter growth in these portfolios. We remain cautiously optimistic, however, about our growth outlook for the second half of the year. Competition remains strong across the markets we serve, not only for customer relationships, but also for talent. As part of our growth initiatives, we are investing in practices to acquire, develop and retain exceptional talent to strengthen our portfolio management capabilities and drive future relationship-based growth. During the quarter, for example, we elevated an internal candidate to lead commercial banking in our Central, Western and Southeastern Kansas regions, who is reporting directly to me. These regions represent important markets for Landmark, and this investment reinforces our long-term commitment to the customers and communities we serve. These investments in leadership and talent are supporting growth across our footprint, including in larger metro areas like the Kansas City metropolitan market, where we continue to successfully expand our customer base. Moving to deposits. Total deposits declined $17.7 million from the end of the first quarter, primarily due to a $28.7 million reduction in broker deposits. Core deposits, which represents total deposits, excluding broker deposits, increased $11.0 million during the quarter, representing an annualized linked quarter growth rate of 3.4%. Noninterest-bearing deposits represented 29.2% of total deposits at June 30, while our total cost of deposits improved to 1.3%, reflecting the benefits of our disciplined adjustments to our funding strategy. Growing our core deposit franchise remains a strategic priority, and we are focused on acquiring new customers and expanding full-service banking relationships across all business lines. Turning to asset quality, which Mark and Raymond will discuss in greater detail later in the call. Nonperforming loans increased by $2.7 million during the second quarter to $13.1 million, yet net charge-offs remained low at 0.17% of average loans compared to 0.13% of average loans in the first quarter of 2026. As we monitor our loan portfolio, we are doing so with a bias toward action and proactively addressing deteriorating credit. As we elevate expectations across the board, we are strengthening our credit culture simultaneously. We are proactively addressing credits that no longer meet our credit risk profile and strengthening the overall quality of the loan portfolio. Before turning the call over to Mark, I would also like to highlight the continued strength of our balance sheet and the growth in our tangible equity. During the quarter, tangible book value per share increased to $21.76, representing annualized linked quarter growth of 16.8% and tangible common equity to assets increased to 8.44%. The Board of Directors declared a cash dividend of $0.21 per share payable on August 27, 2026, to shareholders of record as of August 13, 2026. This dividend marks the company's 100th consecutive quarterly cash dividend since the formation of the holding company in 2001, underscoring our long-standing commitment to delivering value to shareholders. I will now turn the call over to Mark Herpich, our Chief Financial Officer, who will discuss our financial results in greater detail. Mark Herpich: Thanks, Abby, and good morning to everyone. While Abby has just provided a highlight of our overall strong financial performance this year, I'll provide some further detail on our second quarter results. Net income in the second quarter of 2026 totaled $5.4 million compared to $5.1 million in the first quarter of 2026, mainly due to continued growth in net interest income and gain on sale of loans income. In the second quarter of 2026, Net interest income totaled $15.1 million, an increase of $57,000 compared to the first quarter of 2026, driven by increased investment portfolio yields and lower funding costs. Net interest income also grew $1.4 million compared to the same period of the prior year. Total interest income on investments increased $124,000 as compared to the prior quarter to $3.1 million due to higher yields on investments, improving from 3.55% to 3.66%. Average loans decreased by $3.2 million in the second quarter of 2026, while tax equivalent yields on the loan portfolio declined slightly to 6.31% due in part to the $2.7 million increase in nonaccrual loans. Interest expense on deposits in the second quarter of 2026 decreased $262,000 from the prior quarter due to lower cost of deposits, while average deposit balances decreased to $1.3 billion in the second quarter. The decline in deposits relates to a reduction in the level of broker deposits as we strategically elected to utilize our Federal Home Loan Bank borrowing line more heavily during the second quarter. Excluding these broker deposits, our core deposits actually grew by $11.0 million. The average rate on interest-bearing deposits decreased 8 basis points to 1.82% compared to the prior quarter, mainly due to lower rates on deposits. Interest expense on borrowed funds increased by $208,000 compared to the prior quarter due to higher average balances, which were partially offset by lower borrowing rates. The average rate on other borrowed funds decreased 31 basis points to 4.54% in the second quarter as a result of the lower short-term rates. Landmark's net interest margin on a tax equivalent basis declined 2 basis points to 4.22% in the second quarter of 2026 as compared to the first quarter of 2026 and improved 39 basis points as compared to the second quarter of 2025. Noninterest income totaled $4.1 million this quarter, an increase of $331,000 compared to the prior quarter and an increase of $469,000 compared to the second quarter of 2025. The increase in comparison to the prior quarter resulted primarily from a $356,000 increase in gains on sale of loans due to an increase in the volume of loans sold in the secondary market during the second quarter of 2026. Noninterest expense for the second quarter of 2026 totaled $12.0 million, an increase of $63,000 compared to the prior quarter. This increase related primarily to increases of $487,000 in professional fees and $246,000 in compensation and benefits expense, which were partially offset by decreases of $364,000 in other expense and $243,000 in occupancy and equipment expense. The increase in professional fees related primarily to forensic accounting and onetime legal costs associated with previously disclosed fraudulent activity by a nonexecutive officer, along with an increase in talent recruitment and development costs. The decrease in other expense was primarily related to $433,000 of fraud losses recognized during the first quarter as previously disclosed. The recorded fraud loss excludes any potential insurance recoveries we may receive. This quarter, we recorded tax expense of $1.3 million, resulting in an effective tax rate of 19.7% as compared to tax expense of $1.3 million in the first quarter of 2026 for an effective tax rate of 19.8%. Gross loans, including net deferred fees and loans in process increased $4.4 million in the current quarter compared to the previous quarter and totaled $1.1 billion at quarter end. Average loans declined by $3.2 million in the current quarter as compared to the prior quarter. As of June 30, 2026, we experienced increases in our construction and land development portfolio of $4.5 million, our commercial loan portfolio of $2.8 million and our agricultural loan portfolio of $1.5 million, which were partially offset by a $4.0 million decrease in our residential real estate portfolio. Investment securities decreased $1.3 million during the second quarter of 2026, mainly due to maturities slightly exceeding our level of purchases. Our investment portfolio has an average duration of 4.2 years with projected 12-month cash flow of $78.6 million at a roll-off yield of less than 3%, which is lower than current yields available on new investments purchased. Unrealized net losses on our investment portfolio decreased by $1.0 million during the quarter to $7.6 million as a result of lower interest rates. Deposits totaled $1.3 billion at June 30, 2026, a decrease of $17.7 million in the second quarter compared to the prior quarter. This quarter, certificates of deposits declined by $33.5 million, of which $28.8 million was related to lower brokered CDs as we were able to leverage slightly lower cost of funding from other borrowing sources like the Federal Home Loan Bank. The broker deposit decreases were offset by growth in core customer deposits, most notably a $12.8 million increase in noninterest-bearing deposits and $6.7 million growth in money market and checking account balances. Our total borrowings increased by $15.7 million during the quarter as we reduced our brokered deposit balances in connection with the previously discussed transition to less expensive short-term borrowing sources. Our loan-to-deposit ratio totaled 83.5% at June 30 and continues to provide sufficient liquidity to fund expected future loan growth. Stockholders' equity increased $5.2 million during the second quarter to $166.9 million at June 30, 2026, and our book value increased to $27.35 per share at June 30 compared to $26.50 at March 31. The increase in stockholders' equity this quarter mainly resulted from net earnings from the quarter, along with a decrease in other comprehensive losses. Our consolidated and bank regulatory capital ratios as of June 30, 2026, are strong and exceed the regulatory levels required to be considered well capitalized. Now let me turn the call over to Raymond to review highlights of our loan portfolio and credit risk outlook. Raymond McLanahan: Thank you, Mark, and good morning to everyone. As discussed, overall loan balances grew modestly during the second quarter. Total gross loans, including net deferred fees and loans in process, ended the quarter at approximately $1.1 billion, increasing $4.4 million from the prior quarter. As you can see in our earnings release and as Mark mentioned earlier during this call, we enjoyed growth in construction and land, commercial and agricultural loans. Excluding the decline in 1 to 4 family residential real estate loan balances, the portfolio grew 4% annualized over the linked quarter. We continue to thrive in working with high-quality operators and remain focused on disciplined growth, strong underwriting standards and pursuit of opportunities that align with our long-term credit strategy. Turning to credit quality. Nonperforming loans increased during the quarter to $13.1 million or 1.18% of gross loans compared to $10.4 million or 0.94% of gross loans at the end of the first quarter. The increase was largely attributed to two borrower relationships that migrated to nonaccrual status during the quarter. These credits continue to receive heightened attention from management as we work toward the resolution of each relationship. Loans delinquent 30 to 89 days and still accruing interest totaled $6.3 million or 0.57% of gross loans at June 30 compared to $7.4 million or 0.68% at March 31. While we continue to monitor these relationships closely, the decline in early-stage delinquencies is an encouraging trend and reflects progress on several borrower-specific situations. Net loan charge-offs during the second quarter totaled $452,000 compared to $349,000 during the first quarter. On an annualized basis, net charge-offs represented approximately 0.17% of average loans compared to 0.13% of average loans during the prior quarter. Historically, we have enjoyed low net charge-off rates and while charge-offs increased modestly during the quarter, we remain -- they remain manageable relative to the size of the portfolio. Allowance for credit losses totaled $12.7 million or 1.15% of gross loans at June 30, consistent with the prior quarter. We recorded a $500,000 provision for credit losses during the quarter and believe the allowance remains appropriate based on the composition of the portfolio, identified credit trends and our ongoing review process. While nonperforming loans increased during the quarter due to a limited number of borrower-specific situations that we have been actively monitoring and managing, the increases were partially offset by progress made on other credits. Our focus remains on timely identification of emerging issues, proactive portfolio management and working toward a resolution of challenged credits. With that, I thank you. I'll turn the call back over to Abby. Abigail Wendel: Thank you, Raymond. We will now pause for a brief Q&A session. Operator: [Operator Instructions] I'll now turn the call over I'm sorry, we do have a question from the line of John Rodis with Brean Capital. John Rodis: Abby, in your prepared remarks, talking about loan growth. I think I wrote down, you said cautiously optimistic about growth going forward. Do you think you can build on the growth you saw in the second quarter and maybe improve that a little bit in the second half of the year? And sort of what are the puts and takes to that? Abigail Wendel: Yes. That's a great question, John. Thank you for asking, and thanks for joining our call this morning. I also mentioned we're finding opportunities, both winning new customer relationships and expanding on ones that we've enjoyed for many years. And the other dynamic to this is that we're onboarding a number of new commercial lenders out across our footprint. So those things indicate, and I'll point back to cautious optimism around building on the growth that we enjoyed in the second quarter. And as you saw, we did have some nice activity both in the commercial space, commercial focused mortgages, I guess, you could say, to some ag. And really, it was offset by some declines, which was a strategic decision, allowing not putting on more mortgages on the balance sheet, so allowing those payoffs to roll down, leaving room for more opportunities on the commercial side of our business. So without giving specific numbers, I mean, I feel really good about it. We just want to be steady. We want to be prudent. We want to work through the things that we have right in front of us. And we think we have a really nice value proposition for owner-operated businesses across our footprint. John Rodis: Okay. Makes sense. And then I think Raymond said the increase in nonperforming assets was related to two relationships. Can you maybe, to the extent you can give any more detail as far as what type of loans those were? Raymond McLanahan: Yes, John, one of them was an ag borrower relationship. And the other one is a commercial relationship. Relative to both of those, they've been on our radar for some time, and we're working through the resolution of both of those credits. As far as do we feel like there's any potential exposure relative to those, we're not seeing that at this time relative to those. So we feel good about where they are and our ability to work out. John Rodis: Okay. And then, Mark, maybe just a quick question for you on the margin. So the margin was down 2 basis points from the first quarter, but still pretty strong. Do you think all things equal, if the Fed does not move -- if the Fed does nothing, do you think you can kind of hold the margin in the, call it, 420 area for the second half of the year? Mark Herpich: At the risk of stealing Abby's comment of cautiously optimistic, I am cautiously optimistic that we can stay in that 420 range, John. I mean I think that we had some nonaccruals that we kind of forced the hand on during the second quarter that impacted our decrease from Q1 to Q2, and I think we'll be able to hold in there for the rest of the year. Abigail Wendel: I might just add a little bit to that. I think Mark's comments are spot on, especially with respect to -- on the interest income side. And we also saw some nice growth in the second quarter, relatively speaking, on the noninterest-bearing checking account acquisitions. We have a new leader and some new programming in our -- for our retail branches. And they've had some nice wins. And if we can continue on that trend, that definitely would help our margin overall or help it hang in there, I guess, I would say. But that's the only thing I would add beyond what Mark was saying. Mark Herpich: As we alluded in my comments, I guess we've got -- we continue to have the investment portfolio opportunity to have yields that are coming off in the 3% or lower, get reinvested in the mid-4% range. Going to be helpful for the rest of the year as well. Operator: There are no further questions at this time. I will now turn the call back over to Abby Wendel for any closing remarks. Abigail Wendel: Thank you. We are pleased with our performance in the first half of 2026, which reflects continued earnings growth, strong profitability and disciplined expense management. Looking ahead, we remain focused on strengthening customer relationships, developing our talented associates, improving operational efficiency and pursuing strategic growth opportunities that align with our long-term objectives. Every day, I see Landmark associates sharing knowledge, training coworkers, solving problems and helping one another succeed. Those efforts may not always be highlighted on the balance sheet, but they are the foundation that drives our long-term success and long-term value creation. I want to thank our associates for their dedication and commitment to our customers, communities and shareholders. If you have any questions regarding today's call, please refer to our earnings release or -- excuse me, please refer to our earnings release for Investor Relations and CFO contact information. Thank you for joining us today and for your continued interest in Landmark. We look forward to updating you on our progress next quarter. Operator: Ladies and gentlemen, that concludes today's call. Thank you for joining. You may now disconnect. Before you buy stock in Landmark Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Landmark Bancorp wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Landmark Bancorp (LARK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record revenue of $19.2 million driven by higher net interest income and increased gain on sale revenue from secondary market loan volumes. Commercial and agricultural loan growth was supported by moderating payoffs and the successful expansion of customer relationships in the Kansas City metropolitan market. Core deposits increased by $11.0 million, a 3.4% annualized growth rate, as the bank focused on acquiring full-service banking relationships to offset strategic reductions in broker deposits. Management is actively strengthening the credit culture by proactively addressing deteriorating credits that no longer align with the bank's risk profile. Investments in talent acquisition and leadership development, including elevating internal regional leaders, are intended to bolster portfolio management and future growth. The bank maintained a disciplined funding strategy, utilizing Federal Home Loan Bank borrowings to replace more expensive brokered CDs and lower the total cost of deposits to 1.3%. Management expressed cautious optimism for the second half of 2026, expecting to build on loan growth through new commercial lender onboarding and owner-operated business opportunities. The investment portfolio is positioned for yield expansion, with approximately $78.6 million in projected 12-month cash flow rolling off at yields below 3% to be reinvested at higher current rates. Strategic focus remains on growing the core deposit franchise, specifically targeting noninterest-bearing checking accounts through new retail branch programming. The bank intends to continue its shift away from residential mortgages on the balance sheet to create capacity for higher-yielding commercial and agricultural lending opportunities. Guidance assumes a stable net interest margin in the 4.20% range, contingent on the Fed's rate path and the successful resolution of nonaccrual loans. Professional fees increased due to forensic accounting and one-time legal costs related to previously disclosed fraudulent activity by a non-executive officer. Nonperforming loans rose to $13.1 million, primarily attributed to two specific borrower relationships in the agricultural and commercial sectors migrating to nonaccrual status. Fraud losses of $433,000 were recognized in the first quarter, though management noted these figures exclude potential future insurance recoveries. The bank reported its 100th consecutive quarterly cash dividend, signaling a long-term commitment to capital return despite ongoing investments in talent and infrastructure. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is optimistic about building on Q2 growth due to the onboarding of new commercial lenders and a healthy pipeline of owner-operated business relationships. Growth is being strategically steered toward commercial and agricultural sectors while allowing the residential mortgage portfolio to naturally decline. The increase was tied to one agricultural and one commercial relationship that had been monitored for some time. Management does not currently anticipate significant loss exposure from these specific credits and is actively working toward resolution. CFO Mark Herpich indicated the bank can likely maintain a margin in the 4.20% range if the Fed remains on hold. Margin stability is supported by the reinvestment of low-yield investment securities and growth in noninterest-bearing checking accounts.

Interested in Landmark Bancorp Inc.? Here are five stocks we like better. Record Q2 performance: Landmark Bancorp reported $19.2 million in revenue and $5.4 million in net income, with EPS of $0.88. Net interest income and gains on loan sales drove profitability, lifting return on assets to 1.35% and return on equity to 13.23%. Loan and deposit trends were mixed: Gross loans grew $4.4 million, led by construction, commercial and agricultural lending, while core deposits increased $11 million. Total deposits fell $17.7 million as the bank reduced brokered CDs and relied more on lower-cost borrowings. Credit quality requires monitoring: Nonperforming loans rose to $13.1 million, or 1.18% of gross loans, largely due to two borrower relationships entering nonaccrual status. Landmark recorded a $500,000 credit-loss provision, while its allowance remained at 1.15% of gross loans. Landmark Bancorp (NASDAQ:LARK) reported record revenue and higher profitability for the second quarter of 2026, as growth in net interest income and gains on loan sales supported quarterly net income of $5.4 million. Revenue reached a record $19.2 million, while earnings per share rose to $0.88, President and CEO Abigail Wendel said on the company’s earnings call. Return on average assets improved to 1.35%, and return on average equity increased to 13.23%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “I’m pleased with these results, which reflect the strength of our relationship-based banking model, disciplined pricing strategies, and prudent balance sheet management,” Wendel said. Net income increased from $5.1 million in the first quarter. Chief Financial Officer Mark Herpich said the improvement was driven mainly by continued net interest income growth and higher gain-on-sale-of-loans income. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Net interest income totaled $15.1 million, up $57,000 from the prior quarter and $1.4 million from the year-earlier period. Higher investment portfolio yields and lower funding costs contributed to the quarterly increase. Interest income from investments rose $124,000 sequentially to $3.1 million, as investment yields increased to 3.66% from 3.55%. The company’s tax-equivalent net interest margin was 4.22%, down 2 basis points from the first quarter but up 39 basis points from the second quarter of 2025. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Herpich said the margin decline partly reflected the increase in nonaccrual loans during the quarter. Still, he said he was “cautiously optimistic” that Landmark could sustain its margin around the 4.20% level through the remainder of the year, assuming the Federal Reserve does not change rates. He also cited the potential to reinvest investment portfolio cash flows at higher yields. The investment portfolio had a 4.2-year average duration and projected 12-month cash flows of $78.6 million, with securities rolling off at yields below 3%, compared with mid-4% yields on new investments, according to management. Noninterest income totaled $4.1 million, rising $331,000 from the first quarter and $469,000 year over year. The sequential increase was primarily driven by a $356,000 increase in gains on loans sold into the secondary market. Gross loans, including net deferred fees and loans in process, increased $4.4 million during the quarter to approximately $1.1 billion. Growth in construction and land development loans, commercial loans, and agricultural loans was partially offset by a decline in one-to-four-family residential real estate balances. Construction and land development loans rose $4.5 million, commercial loans increased $2.8 million, and agricultural loans rose $1.5 million. Residential real estate loans declined $4.5 million. Excluding the residential portfolio decline, Chief Credit Officer Raymond McLanahan said the loan portfolio grew at a 4% annualized rate from the first quarter. Wendel said the company’s commercial lending teams continued to identify opportunities to add new customers and deepen existing relationships. She said Landmark is adding commercial lenders across its footprint and has promoted an internal candidate to lead commercial banking in Central, Western and Southeastern Kansas. Management expressed cautious optimism for loan growth in the second half, while noting continued competition for both customers and banking talent. Wendel said the company has deliberately allowed some residential mortgage balances to decline, leaving more capacity for commercial lending opportunities. Total deposits declined $17.7 million from the first quarter to $1.3 billion, primarily because brokered deposits fell. Certificates of deposit declined $33.5 million, including a $28.8 million reduction in brokered CDs, as Landmark used Federal Home Loan Bank borrowings more heavily. Core deposits, excluding brokered deposits, increased $11 million during the quarter. Noninterest-bearing deposits rose $12.8 million, while money market and checking balances grew $6.7 million. Noninterest-bearing deposits represented 29.2% of total deposits as of June 30. The total cost of deposits improved to 1.3%, while the average rate on interest-bearing deposits declined 8 basis points from the first quarter to 1.82%. Total borrowings increased $15.7 million as the company shifted away from brokered deposits and toward lower-cost short-term borrowing sources. Nonperforming loans increased $2.7 million during the quarter to $13.1 million, or 1.18% of gross loans, from $10.4 million, or 0.94%, at the end of the first quarter. McLanahan said the increase was largely attributable to two borrower relationships moving to nonaccrual status. During the question-and-answer session, McLanahan said one relationship involved an agricultural borrower and the other involved a commercial borrower. Both had been on management’s radar, he said, and the company was working toward resolution. He said management was not seeing potential exposure from those credits at that time. Loans delinquent 30 to 89 days but still accruing interest declined to $6.3 million, or 0.57% of gross loans, from $7.4 million, or 0.68%, in the prior quarter. Net charge-offs were $452,000, compared with $349,000 in the first quarter. Annualized net charge-offs equaled 0.17% of average loans, up from 0.13% in the previous quarter. The allowance for credit losses was $12.7 million, or 1.15% of gross loans, unchanged from the first quarter. Landmark recorded a $500,000 provision for credit losses during the quarter. Noninterest expense totaled $12 million, increasing $63,000 from the prior quarter. Professional fees rose $487,000, primarily related to forensic accounting and one-time legal costs connected with previously disclosed fraudulent activity by a nonexecutive officer, as well as higher talent recruitment and development costs. The company said the prior quarter included $433,000 in fraud losses, which reduced other expenses in the second quarter. The recorded fraud loss excludes any potential insurance recoveries, Herpich said. Stockholders’ equity increased $5.2 million during the quarter to $166.9 million. Book value per share rose to $27.35 as of June 30 from $26.50 at March 31, while tangible book value per share increased to $21.76. Tangible common equity to assets rose to 8.44%. Landmark’s board declared a quarterly cash dividend of $0.21 per share, payable Aug. 27, 2026, to shareholders of record on Aug. 13. Wendel said the payment will mark the company’s 100th consecutive quarterly cash dividend since the holding company’s formation in 2001. Looking ahead, Wendel said Landmark will focus on strengthening customer relationships, developing employees, improving operational efficiency and pursuing growth opportunities consistent with its long-term strategy. Landmark Bancorp, Inc is the bank holding company for Landmark Community Bank, a community‐focused financial institution. The company provides a full range of deposit and lending products through its subsidiary, including checking and savings accounts, certificates of deposit, residential mortgages, home equity lines of credit and small business loans. Landmark Bancorp emphasizes personalized service, leveraging local decision-making to meet the unique needs of individuals and local enterprises. In addition to traditional deposit and lending services, Landmark Bancorp offers comprehensive cash-management and treasury solutions for commercial clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Landmark Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Announces Second Quarter 2026 Earnings Per Share Growth of 6.1%Declares Quarterly Cash Dividend of $0.21 per Share Manhattan, KS, July 29, 2026 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.88 for the second quarter of 2026, compared to $0.83 per share in the first quarter of 2026 and $0.72 per share in the same quarter of the prior year. Net earnings for the second quarter totaled $5.4 million, compared to $5.1 million in the prior quarter and $4.4 million in the second quarter of 2025. For the three months ended June 30, 2026, the return on average assets was 1.35%, the return on average equity was 13.23%, and the efficiency ratio(1) was 61.7%. For the first six months of 2026, diluted earnings per share totaled $1.70, compared to $1.49 during the same period in 2025. Net earnings for the first six months of 2026 totaled $10.5 million, compared to $9.1 million in the first six months of 2025, or an increase of 14.9%, driven primarily by higher net interest income. For the six months ended June 30, 2026, the return on average assets was 1.32%, the return on average equity was 12.94%, and the efficiency ratio(1) was 62.2%. Second quarter 2026 Performance Highlights Return on average assets improved to 1.35%, compared to 1.29% in the prior quarter and 1.11% in the second quarter of 2025. Return on average equity was 13.23%, compared to 12.65% in the prior quarter and 12.25% in the second quarter of 2025. Net interest margin decreased two basis points from the prior quarter to 4.22%, and improved 39 basis points compared to the second quarter of 2025. Net interest income expanded to $15.1 million, an increase of 0.4% as compared to the prior quarter and an increase of 10.2% from the same quarter in 2025. Net interest margin improvement is due partially to improving funding costs over the past year. Commercial, commercial real estate, construction and land, and agricultural loans grew $7.4 million compared to the prior quarter, an annualized increase of 4.3%, partially offset by a reduction in on-balance sheet residential mortgage loans. Non-interest-bearing deposits ended the quarter at 29.2% of total deposits. Total deposit costs improved to 1.30%, a decrease of eight basis points as compared to the prior quarter and a decrease of 26 basis points from the second quarter of 2025. Capital continues to grow and capital ratios remain strong. Tangible common equity to assets(1) increased to 8.44% as of June 30, 2026, from 8.11% as of March 31, 2026, and 7.15% as of June 30, 2025. Book value per share was $27.35 as of June 30, 2026, compared to $26.50 as of March 31, 2026. Tangible book value per share(1) grew to $21.76, compared to $20.89 as of March 31, 2026. (1) Non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation. “Landmark’s strong second quarter results reflected record revenue of more than $19 million, solid earnings performance, and continued improvement in profitability,” said Abby Wendel, President and Chief Executive Officer. “Our continued revenue growth demonstrates the strength of our relationship-based banking model, disciplined pricing strategies, and prudent balance sheet management.” Ms. Wendel continued, “We were pleased to see loan growth accelerate during the second quarter, especially across all areas of our commercial and agricultural-related loan portfolios, driven by our team’s focus on attracting new clients while deepening relationships with existing clients. And while nonperforming loans, which increased during the quarter, remain higher than we would like, we are making steady progress improving the overall portfolio quality through proactive management and the resolution of credits that no longer align with our credit risk profile. Strong capital generation continues to strengthen our balance sheet which supports ongoing investments in talent, technology and facilities to enhance the customer and associate experience.” Dividend Declaration Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid August 27, 2026, to common stockholders of record as of the close of business on August 13, 2026. Earnings Conference Call Landmark will host a conference call to review the Company’s second quarter financial results at 10:00 a.m. (Central time) on Thursday, July 30, 2026. Interested parties may participate via telephone by dialing (800) 715-9871. An audio recording of the earnings call will be available through August 6, 2026. To access the recording, register via https://echo.registrations.events/signup using Conference ID 78609 to receive a unique access code to listen to the playback, including the correct numbers to dial. SUMMARY OF SECOND QUARTER RESULTS Net Interest Income Net interest income in the second quarter of 2026 totaled $15.1 million, representing an increase of $57,000, or 0.4%, compared to the prior quarter and an increase of $1.4 million, or 10.2%, compared to the same quarter of the prior year. The increase in net interest income this quarter compared to both the prior quarter and the second quarter of 2025 was driven by higher rates on investments despite lower average balances, coupled with lower interest expense on deposits and other borrowings which more than offset a slight decrease in loan yields. The net interest margin for the second quarter of 2026 was 4.22%, a decrease of two basis points from 4.24% during the prior quarter and an increase of 39 basis points from 3.83% during the second quarter of the prior year. The average tax-equivalent yield on the investment securities portfolio grew to 3.66%, compared to 3.55% in the prior quarter and 3.34% in the second quarter of 2025 as lower-rate securities matured during the quarter. The average tax-equivalent yield on the loan portfolio declined nine basis points as compared to the prior quarter and decreased six basis points as compared to the second quarter of the prior year. Compared to the first quarter of 2026, interest on deposits decreased $262,000, or 5.7%, due to lower rates, coupled with decreased average balances as brokered deposits declined. Interest on other borrowed funds increased $208,000 from the first quarter of 2026, driven by higher average balances, partially offset by a decrease in rates. The average rate on interest-bearing deposits decreased eight basis points from the prior quarter, to 1.82%, primarily due to lower rates on certificates of deposit. The average rate on other borrowed funds decreased 31 basis points to 4.54% in the second quarter of 2026, offset by an increase in average balances in borrowings from the FHLB. Compared to the second quarter of 2025, interest on deposits decreased $795,000, or 15.5%, due to lower rates, coupled with decreased average balances. Interest on other borrowed funds decreased $449,000 from the second quarter of the prior year, due to lower rates and average balances. The average rate on interest-bearing deposits decreased 32 basis points from the second quarter of 2025, primarily due to lower rates on money market and checking accounts and certificates of deposit. The average rate on other borrowed funds decreased 44 basis points as compared to the second quarter of 2025. Non-Interest Income Non-interest income totaled $4.1 million for the second quarter of 2026, an increase of $331,000 from the prior quarter and an increase of $469,000 from the same quarter in the prior year. The increase in non-interest income as compared to the prior quarter was primarily due to an increase of $356,000 in gains on the sale of loans due to an increase in the volume of loans sold in the secondary market. The increase in non-interest income as compared to the second quarter of the prior year was primarily due to an increase of $501,000 in gains on the sale of loans due to an increase in the volume of loans sold in the secondary market. Non-Interest Expense During the second quarter of 2026, non-interest expense totaled $12.0 million, an increase of $63,000, or 0.5%, compared to the prior quarter and an increase of $1.0 million, or 9.1%, compared to the same period in the prior year. Compared to the prior quarter, the increase in non-interest expense was primarily due to increases of $487,000 in professional fees and $246,000 in compensation and benefits expense. These increases were partially offset by decreases of $364,000 in other expense and $243,000 in occupancy and equipment expense. The increase in professional fees was attributable to $270,000 in one-time forensic accounting and legal costs related to previously disclosed fraudulent activity by a non-executive officer of the bank, coupled with an increase in consulting expenses for talent recruitment and development, and internal audit co-sourcing. The increase in compensation and benefits was attributable to higher incentive compensation expense in the second quarter of 2026 as compared to the prior quarter. The decrease in other expense was primarily due to $433,000 of fraud losses related to fraudulent activity by a non-executive officer of the bank, which was identified during the first quarter. The decrease in occupancy and equipment expense was related to expenses incurred to upgrade our core branch operation systems during the first quarter of 2026. Compared to the second quarter of 2025, the increase in non-interest expense was primarily due to increases of $711,000 in professional fees and $335,000 in compensation and benefits. The increase in professional fees was attributable to $270,000 in one-time forensic accounting and legal costs related to previously disclosed fraudulent activity as outlined above, coupled with an increase in consulting expenses for talent recruitment and development, and internal audit co-sourcing. The increase in compensation and benefits was attributable to an increase in the number of employees in the current year, coupled with higher benefits expense as compared to the prior year. Income Tax Expense Landmark recorded income tax expense of $1.3 million in the second quarter of 2026, compared to $1.3 million in the prior quarter, and $944,000 in the second quarter of 2025. The effective tax rate was 19.7% in the second quarter of 2026, compared to 19.8% in the prior quarter and 17.7% in the second quarter of 2025. Balance Sheet Highlights As of June 30, 2026, gross period-end loans totaled $1.1 billion, an increase of $3.3 million from the prior quarter, while average loans declined $3.2 million. The increase in period-end loans was primarily driven by higher construction and land loans (growth of $4.5 million), commercial loans (growth of $1.5 million) and agriculture loans (growth of $1.5 million), offset by a decline in one-to-four family residential real estate loans (decline of $4.0 million). Investment securities available-for-sale decreased $1.3 million during the second quarter of 2026, primarily due to maturities occurring during the quarter. Period-end deposit balances decreased $17.7 million to $1.3 billion at June 30, 2026, an annualized decrease of 5.4% compared to the prior quarter. The decrease in deposits was driven primarily by a decline in brokered deposits and more specifically by decreases in certificates of deposit and savings accounts of $33.5 million and $3.6 million, respectively. These decreases were partially offset by increases in non-interest-bearing demand deposits ($12.8 million increase) and money market and checking accounts ($6.7 million increase). Total period-end borrowings increased $15.7 million during the second quarter of 2026. At June 30, 2026, the loan to deposits ratio was 83.5%, compared to 82.1% in the prior quarter. Stockholders’ equity increased to $166.9 million (book value of $27.35 per share) as of June 30, 2026, from $161.6 million (book value of $26.50 per share) as of March 31, 2026. The increase in stockholders’ equity was primarily due to net earnings for the quarter net of dividends paid, coupled with a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities). The ratio of equity to total assets increased to 10.39% on June 30, 2026, from 10.06% on March 31, 2026. The allowance for credit losses totaled $12.7 million, or 1.15% of total gross loans, as of June 30, 2026, compared to $12.6 million, or 1.15% of total gross loans, as of March 31, 2026. Net loan charge-offs totaled $452,000 in the second quarter of 2026, compared to $349,000 during the first quarter of 2026 and $40,000 in the second quarter of the prior year. A provision for credit losses on loans of $500,000 was recorded in both the first and second quarters of 2026, a decrease of $500,000 as compared to the second quarter of the prior year. Non-performing loans totaled $13.1 million, or 1.18% of gross loans, at June 30, 2026, compared to $10.4 million, or 0.94% of gross loans, at March 31, 2026. Loans 30-89 days delinquent totaled $6.3 million, or 0.57% of gross loans, as of June 30, 2026, compared to $7.4 million, or 0.68% of gross loans, as of March 31, 2026. 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 28 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka, Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information. Contact Information Special Note Concerning Forward-Looking Statements This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in 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. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations, and assumptions regarding its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. 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. Because forward-looking statements relate to the future, they are subject to inherent known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict and many of which may be out of the Company’s control. These factors include, among others, the following: (i) the strength of the local, state, national and international economies and financial markets, including the effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto and changes in global energy market conditions; (ii) effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; (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) rapid and expensive technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (x) the loss of key executives or employees; (xi) changes in consumer spending; (xii) integration of acquired businesses; (xiii) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (xiv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xv) past and any future terrorist attacks, military conflicts, acts of war, changes in foreign relations, or other adverse external events, including ongoing conflicts in the Middle East, wars in Iran and Ukraine, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; (xvi) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xvii) fluctuations in the value of securities held in our securities portfolio; (xviii) concentrations within our loan portfolio and large loans to certain borrowers (including commercial real estate loans); (xix) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xx) the level of non-performing assets on our balance sheets; (xxi) the ability to raise additional capital; (xxii) the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxvi) the availability of future equity or debt issuances and other capital raising opportunities on favorable terms; (xxvii) the Company’s success at managing and responding to the risks involved in the foregoing items; and (xxviii) 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 SUBSIDIARIESConsolidated Balance Sheets (unaudited) LANDMARK BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Earnings (unaudited) (1) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025. LANDMARK BANCORP, INC. AND SUBSIDIARIESSelect Ratios and Other Data (unaudited) (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.(4) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025. LANDMARK BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Measures (unaudited) (1) Share and per share values at or for the period ended June 30, 2025 have been adjusted to give effect to the 5% stock dividend paid during December 2025.

Image source: The Motley Fool. Thursday, April 30, 2026, at 11 a.m. ET President and Chief Executive Officer — Abigail Wendel Chief Financial Officer — Mark Herpich Chief Credit Officer — Raymond McLanahan Abby Wendel; Chief Financial Officer, Mark Herpich; and Chief Credit Officer, Raymond McLanahan. During today's call, we may make statements that constitute projections, plans, objectives, future performance, beliefs, expectations and similar forward-looking statements. These statements involve risks and uncertainties, which should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. We caution that such statements and predictions only and that actual results may differ materially. We include more information on these factors in our earnings release furnished with our Form 8-K yesterday as well as our Form 10-K and Form 10-Q filings and subsequent filings with the SEC. Additionally, all statements, 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. Also, our remarks may reference certain non-GAAP financial metrics, which we believe provide useful information to investors. Additional disclosures regarding non-GAAP metrics, including the reconciliation of those non-GAAP metrics to GAAP are contained in our earnings release, which we filed yesterday with the SEC and are also available on the Investors section of our website at banklandmark.com. We caution that these non-GAAP financial metrics should not be viewed as a substitute for operating results determined in accordance with GAAP as contained in our earnings release and other filings with the SEC. A replay of this call will be available through May 7, 2026. Access information can be found in our earnings release. I will now turn the conference call over to our President and Chief Executive Officer, Abby Wendel. Abigail Wendel: Thank you, Shelley. Good morning, everyone, and thank you for joining us today as we discuss Landmark's earnings and operating results for the first quarter of 2026. Landmark is off to a strong start this year, reflected in solid performance across several key areas that position us favorably for the remainder of the year. Total revenue reached a record $18.8 million for the quarter. Earnings per share increased to $0.83, an increase of 6.7% over the fourth quarter of 2025 and 7.2% compared to the first quarter of 2025. Our return on assets rose to 1.29%, which is an increase of 12 basis points on a linked-quarter basis and an increase of 7 basis points year-over-year. I am very pleased with the bank's performance and improved profitability levels, which are a direct reflection of our associates' hard work and advancement of our strategic initiatives. Our market positioning is strengthening as well, and we look forward to the months and years ahead. Net interest income increased 1.6% on a linked-quarter basis to $15 million, while our net interest margin expanded to 4.24%, up 21 basis points versus the fourth quarter of 2025. Our favorable net interest margin is supported by our solid core customer base and disciplined pricing approach, enabling us to sustain a healthy core revenue base. Loans ended the quarter at $1.1 billion, down slightly $13.5 million from year-end 2025, but up $23.3 million from a year ago. We are seeing strong growth in our commercial real estate portfolio, which offset reductions in our agriculture portfolio. Our residential mortgage portfolio was also down as more of our originations were sold into the secondary market versus retention on our balance sheet. The impact of selling more originations, coupled with payoffs and paydowns during the quarter accounted for slightly more than $7 million of the $13.5 million decrease in loan balances this quarter. Mortgage originations, however, were up 9% over the first quarter of 2025, driving an increase in gain on sale income as we sold more loans into the secondary market. On the deposit side, the reduction in balances for the quarter was largely driven by seasonal outflows of public fund deposits, coupled with the strategic decision to replace some brokered funding with FHLB borrowings. What I'm most excited about is the continued growth in our core customer deposits, which increased 1.6% on a linked-quarter basis, reinforcing the value our customers place in our relationship-based banking approach. We remain focused on growing our core customer accounts in our local communities to strengthen our presence and deepen our relationships within the communities we serve. Later in the call, Mark Herpich, our CFO, will provide additional details on our financial results. Net charge-offs were 13 basis points of average loans during the quarter, while nonperforming loans increased $384,000. Raymond will provide more details on our asset quality later in this call as well, but I want to highlight that credit risk management remains a top priority as we work to further enhance the stability and quality of our portfolio. Additionally, we remain focused on strengthening overall risk oversight and thoughtfully reinforcing our balance sheet and capital position. These priorities ensure we are well positioned to remain resilient and adaptable across all economic environments. Tangible common equity to assets increased 8.11%, while tangible book value per share ended the quarter at $20.89. I am pleased to report that our Board of Directors has declared a cash dividend of $0.21 per share to be paid May 28 to shareholders of record as of May 14, 2026. This represents the 99th consecutive quarterly cash dividend since the parent company's formation in 2001. Looking ahead, we will continue making targeted investments in revenue-generating activities to better meet evolving customer needs. At the same time, we are actively evaluating opportunities to improve efficiency and modernize how we deliver banking services across our footprint. I will now turn the call over to Mark Herpich, our CFO, who will review the financial results in more detail with you. Mark Herpich: Thanks, Abby, and good morning to everyone. While Abby has just provided a highlight of our overall strong financial performance for this year, I'll provide some further details on our first quarter results. Net income in the first quarter of 2026 totaled $5.1 million compared to $4.7 million in the first quarter of 2025, mainly due to continued growth in net interest income. In the first quarter of 2026, net interest income totaled $15.0 million, an increase of $234,000 compared to the fourth quarter of 2025, driven by increased investment portfolio yields and lower funding costs. Net interest income also grew $1.9 million compared to the same period last year. Total interest income on investments increased $21,000 as compared to the prior quarter to $2.9 million due to higher yields on investments improving from 3.39% to 3.55%. Average loans decreased by $12.8 million and while the tax equivalent yield on the loan portfolio remained flat at 6.4%. Interest expense on deposits in the first quarter of 2026 decreased $527,000 from the prior quarter, resulting from lower cost of deposits, while average deposit balances decreased slightly but remained steady at $1.4 billion in the first quarter. Interest expense on borrowed funds also decreased by $296,000 due to lower average balances and lower borrowing rates. The average rate on interest-bearing deposits decreased 16 basis points to 1.90%, mainly due to lower rates on deposits. The average rate on other borrowed funds decreased 8 basis points to 4.85% in the first quarter as a result of the lower short-term Fed funds rate. Landmark's net interest margin on a tax equivalent basis improved 21 basis points to 4.24% in the first quarter of 2026 as compared to the fourth quarter of 2025 and has improved 48 basis points compared to the first quarter of 2025. Noninterest income totaled $3.8 million this quarter, a decrease of $135,000 compared to the prior quarter, but an increase of $406,000 as compared to the first quarter of 2025. The decrease in comparison to the prior quarter resulted primarily from a $308,000 decline in fees and service charges, driven by a seasonal decrease in interchange income and lower overdraft income during the first quarter of 2026. This decrease was partially offset by an increase in gains on sales of investment securities, driven by $101,000 of losses recognized during the fourth quarter as part of our strategy to reposition our investment securities portfolio to improve future income and an increase of $87,000 in bank-owned life insurance income. Noninterest expense for the first quarter of 2026 totaled $11.9 million, a decrease of $362,000 compared to the prior quarter. This decrease related primarily to decreases of $492,000 in compensation and benefits expense and an impairment loss taken on repossessed assets held for sale of $356,000 in the prior quarter. These decreases were partially offset by an increase of $472,000 in other expense. The decrease in compensation and benefits resulted from lower incentive compensation in the first quarter of 2026 as compared to the fourth quarter of 2025. The increase in other expense was primarily related to $433,000 of fraud losses recognized during the quarter related to previously disclosed fraudulent activity by a nonexecutive officer of the bank, coupled with higher insurance loss reserves at our captive insurance subsidiary. The recorded fraud loss excludes any potential insurance recoveries we may receive. This quarter, we recorded tax expense of $1.3 million, resulting in an effective tax rate of 19.8% as compared to tax expense of $1.2 million in the fourth quarter of 2025 for an effective tax rate of 20.0%. Gross loans decreased $13.5 million in the current quarter compared to the previous quarter and totaled $1.1 billion at quarter end. Average loans also declined by $12.8 million in the current quarter as compared to the prior quarter. As of March 31, we experienced decreases in our agricultural portfolio of $16.2 million and our residential real estate loan portfolio of $7.0 million, which were partially offset by a $13.6 million increase in our commercial real estate portfolio. Investment securities decreased $6.1 million during the first quarter of 2026, mainly due to maturities exceeding our levels of purchases. Our investment portfolio has an average duration of 4.3 years with a projected 12-month cash flow of $68.7 million. Pretax unrealized net losses on our investment portfolio increased by $3.8 million to $11.3 million this quarter due to rising interest rates. Deposits totaled $1.3 billion at March 31, 2025, and decreased by $66.2 million in the first quarter compared to the prior quarter. This quarter, interest checking and money market deposits decreased by $61.6 million, while certificates of deposits declined by $10.8 million. The quarterly decrease in deposits was driven primarily by seasonal outflows in public fund deposit account balances, along with a decline in broker deposits as we were able to leverage slightly lower cost of funding from other borrowing sources like the Federal Home Loan Bank. These decreases were offset by growth in core customer deposits. Our total borrowings increased by $57.3 million during the quarter as deposit growth allowed us to reduce more expensive short-term borrowings. Our loan-to-deposit ratio totaled $82.1 million at March 31 and continues to provide sufficient liquidity to fund future loan growth. Stockholders' equity increased $980,000 during the first quarter to $161.6 million at March 31, 2026, and our book value increased to $26.50 per share at March 31 compared to $26.44 at December 31. The increase in stockholders' equity this quarter mainly resulted from net earnings from the quarter, partially offset by an increase in other comprehensive losses. Our consolidated and bank regulatory capital ratios as of March 31, 2026, are strong and continue to exceed the regulatory levels considered well capitalized. Now let me turn the call over to Raymond to review highlights of our loan portfolio and the credit risk outlook. Raymond McLanahan: Thank you, Mark, and good morning to everyone. As discussed earlier, overall loan balances declined modestly during the first quarter, reflecting our continued focus on disciplined growth and active balance sheet management. While total gross loans ended the quarter at $1.1 billion, down approximately $13.5 million from year-end, we continue to see targeted growth in our commercial real estate portfolio, which increased by $13.6 million during the quarter. This growth was offset primarily by seasonal paydowns and planned reductions in agricultural loans which declined $16.2 million, along with modest decreases in the one-to-four family residential, commercial and commercial construction and land portfolios. Consistent with our long-standing credit philosophy, we remain selective in new originations and proactive in managing exposures that no longer align with our risk appetite. While strategic exits were more limited this quarter compared to the fourth quarter of 2025, we continue to actively work down select relationships where credit fundamentals or longer-term outlooks warrant a reduction in exposure. Turning to credit quality. As of March 31, 2026, nonperforming loans totaled $10.4 million or 0.94% of gross loans, reflecting a slight increase from 0.90% at year-end. The increase was primarily attributed to a single $1.3 million commercial relationship that ceased operations shortly after quarter end. While no specific impairment had been identified at quarter end, we prudently moved the relationship to nonaccrual following the change in operating status. The borrower is working cooperatively with the bank to self-liquidate and subsequent to quarter end, the outstanding balance was reduced by approximately $500,000. We continue to closely monitor this situation and believe it is being addressed appropriately. Loans delinquent 30 to 89 days and still accruing interest totaled $7.4 million or 0.68% of gross loans compared to $4.3 million or 0.38% at December 31. The increase in past due balances was primarily attributed to a $2.2 million agricultural relationship and a $1.8 million loan secured by several 1-to-4 family residential properties. While this represents a quarter-over-quarter increase, the underlying drivers are borrower-specific, and we believe these metrics remain manageable as we work through resolution and expect improvement over time. We continue to benefit from a well-diverse loan portfolio and consistent underwriting standards, which have helped limit broader adverse credit migration. Net loan charge-offs during the first quarter totaled $349,000, consistent with the $341,000 recorded in the fourth quarter of 2025. On an annualized basis, net charge-offs represented approximately 0.13% of average loans, which we continue to view as manageable and reflective of the underlying strength of our portfolio. The allowance for credit losses increased slightly to $12.6 million, representing 1.15% of gross loans compared to 1.12% at year-end. We recorded a $500,000 provision for credit losses during the quarter, reflecting portfolio mix changes, updated economic assumptions and continued prudence in reserving practices. We believe the allowance for credit losses remains appropriately -- appropriate relative to the current portfolio risk and identified credit trends. From an economic standpoint, conditions across Kansas remains generally stable. Employment levels continue to support borrower cash flows. And while certain sectors are experiencing pressure from higher operating costs and interest rates, we have not observed systemic stress within the portfolio. Overall, certain credit metrics remain modestly elevated. We believe these trends are manageable and should improve over time as we work through a small number of borrower-specific situations. Our focus remains on disciplined underwriting and proactive risk management. Thank you, and I'll turn the call back over to Abby. Abigail Wendel: Thank you, Raymond. As 2026 continues, we will continue investing in our associates and making thoughtful strategic decisions that enhance our customers' experience and position us to grow in the markets we serve. I am sincerely grateful to our associates for their continued dedication to putting people first and for fostering the meaningful connections that support our customers and strengthen the communities we proudly serve. If there are any follow-up questions to today's call, please see our earnings release for our CFOs and our Investor Relations contact information. We appreciate everyone being on today's call, and we look forward to talking with you again in July. Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for joining. You may now disconnect. Before you buy stock in Landmark Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Landmark Bancorp wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!* Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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Landmark reported a strong Q1 with record revenue of $18.8 million, EPS of $0.83 and improved profitability as net interest margin expanded to 4.24%, driven by higher investment yields and disciplined pricing. Deposits declined $66.2 million sequentially even though core customer deposits rose 1.6%; management replaced some brokered deposits with FHLB borrowings, raising total borrowings by $57.3 million and keeping the loan-to-deposit ratio at 82.1%. Credit metrics showed modest weakness with non-performing loans rising to 0.94% of gross loans and higher delinquencies, alongside a $500,000 provision for credit losses, while non-interest expense was up partly due to a $433,000 fraud loss. Interested in Landmark Bancorp Inc.? Here are five stocks we like better. Landmark Bancorp (NASDAQ:LARK) reported what management called a strong start to 2026, highlighted by record quarterly revenue, improved profitability, and an expansion in net interest margin despite modest balance sheet contraction. President and CEO Abby Wendel said total revenue reached a record $18.8 million in the first quarter. Earnings per share were $0.83, up 6.7% from the fourth quarter of 2025 and up 7.2% from the first quarter of 2025. Return on assets increased to 1.29%, up 12 basis points from the prior quarter and 7 basis points year-over-year. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Net interest income rose 1.6% sequentially to $15.0 million, and the net interest margin expanded to 4.24%, up 21 basis points from the fourth quarter of 2025. Wendel attributed the margin performance to Landmark’s “solid core customer base and disciplined pricing approach.” Chief Financial Officer Mark Herpich said net income totaled $5.1 million for the first quarter of 2026, compared with $4.7 million in the first quarter of 2025, “mainly due to continued growth in net interest income.” Herpich said net interest income increased $234,000 from the fourth quarter of 2025, driven by increased investment portfolio yields and lower funding costs, and grew $1.9 million from the year-ago quarter. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Herpich said investment yields improved, with total interest income on investments rising to $2.9 million and investment yields increasing to 3.55% from 3.39% in the prior quarter. Average loans declined $12.8 million, while the tax-equivalent yield on the loan portfolio remained flat at 6.4%. On the funding side, interest expense on deposits decreased $527,000 from the prior quarter, which Herpich said resulted from a lower cost of deposits. He said the average rate on interest-bearing deposits fell 16 basis points to 1.90%. Interest expense on borrowed funds decreased $296,000 due to lower average balances and lower borrowing rates, and the average rate on other borrowed funds declined 8 basis points to 4.85%, which Herpich attributed to a lower short-term fed funds rate. → Did Qualcomm Just Put Apple in Check? Non-interest income totaled $3.8 million, down $135,000 from the prior quarter but up $406,000 from the first quarter of 2025, according to Herpich. The sequential decline was driven primarily by a $308,000 decrease in fees and service charges due to a seasonal decline in interchange income and lower overdraft income. The decline was partially offset by higher gains on sales of investment securities—helped by $101,000 of losses recognized in the fourth quarter tied to a portfolio repositioning strategy—and an $87,000 increase in bank-owned life insurance income. Non-interest expense was $11.9 million, down $362,000 from the fourth quarter of 2025. Herpich attributed the decline primarily to lower compensation and benefits expense and the absence of an impairment loss recorded in the prior quarter on repurchased assets held for sale. Compensation and benefits fell $492,000 due to lower incentive compensation. These decreases were partially offset by a $472,000 increase in other expense. Herpich said other expense increased mainly because Landmark recognized $433,000 of fraud losses “related to previously disclosed fraudulent activity by a non-executive officer of the bank,” along with higher insurance loss reserves at its captive insurance subsidiary. He added that the recorded fraud loss excludes potential insurance recoveries. The company recorded tax expense of $1.3 million, producing an effective tax rate of 19.8%, compared with an effective tax rate of 20.0% in the fourth quarter of 2025, Herpich said. Wendel said loans ended the quarter at $1.1 billion, down $13.5 million from year-end 2025 but up $23.3 million from a year earlier. She said commercial real estate growth offset reductions in agriculture, while the residential mortgage portfolio declined as more originations were sold into the secondary market rather than retained. Wendel said selling more originations, coupled with payoffs and paydowns, accounted for “slightly more than $7 million” of the quarterly decline in loan balances. She added that mortgage originations were up 9% from the first quarter of 2025, contributing to higher gain-on-sale income as more loans were sold into the secondary market. Herpich detailed the loan mix changes, noting decreases of $16.2 million in the agricultural portfolio and $7.0 million in residential real estate, partially offset by a $13.6 million increase in commercial real estate. On deposits, Wendel said the quarterly reduction was largely driven by seasonal public fund outflows, along with a strategic decision to replace some brokered funding with Federal Home Loan Bank (FHLB) borrowing. She emphasized growth in core customer deposits, which increased 1.6% from the prior quarter. Herpich said deposits totaled $1.3 billion at March 31, 2026, and declined $66.2 million from the prior quarter. He cited decreases of $61.6 million in interest checking and money market deposits and a $10.8 million decline in certificates of deposit. The company reduced broker deposits and used other borrowing sources, including the FHLB, as part of its funding mix strategy, he said. Herpich also said total borrowings increased $57.3 million during the quarter. Landmark’s loan-to-deposit ratio was 82.1% at quarter-end, which Herpich said “continues to provide sufficient liquidity to fund future loan growth.” Chief Credit Officer Raymond McLanahan said overall loan balances declined modestly as the bank focused on “disciplined growth and active balance sheet management,” including working down select relationships that no longer align with its risk appetite. McLanahan said non-performing loans totaled $10.4 million, or 0.94% of gross loans, up slightly from 0.90% at year-end. He attributed the increase primarily to a single $1.3 million commercial relationship that “ceased operations shortly after quarter end.” While no specific impairment was identified at quarter-end, McLanahan said the bank moved the relationship to non-accrual and that the borrower is working with the bank to self-liquidate. He added that subsequent to quarter-end, the outstanding balance was reduced by about $500,000. Loans delinquent 30 to 89 days and still accruing interest rose to $7.4 million, or 0.68% of gross loans, from $4.3 million, or 0.38% at December 31. McLanahan said the increase was primarily tied to a $2.2 million agricultural relationship and a $1.8 million loan secured by several 1-4 family residential properties, describing the drivers as borrower-specific and “manageable.” Net charge-offs were $349,000 in the quarter, similar to $341,000 in the fourth quarter of 2025, McLanahan said. On an annualized basis, net charge-offs were about 0.13% of average loans. The allowance for credit losses increased to $12.6 million, or 1.15% of gross loans, from 1.12% at year-end, and the company recorded a $500,000 provision for credit losses, which McLanahan said reflected portfolio mix changes, updated economic assumptions, and “continued prudence in reserving practices.” McLanahan said conditions across Kansas remained “generally stable,” with employment supporting borrower cash flows, though some sectors face pressure from higher operating costs and interest rates. He said management had not observed “systemic stress” within the portfolio. Wendel also highlighted capital and shareholder returns, stating tangible common equity to assets increased to 8.11% and tangible book value per share ended the quarter at $20.89. She said the board declared a cash dividend of $0.21 per share payable May 28 to shareholders of record May 14, marking the company’s 99th consecutive quarterly cash dividend since the parent company’s formation in 2001. Looking ahead, Wendel said Landmark plans to make “targeted investments in revenue generating activities” while evaluating opportunities to improve efficiency and modernize how it delivers banking services across its footprint. Landmark Bancorp, Inc is the bank holding company for Landmark Community Bank, a community‐focused financial institution. The company provides a full range of deposit and lending products through its subsidiary, including checking and savings accounts, certificates of deposit, residential mortgages, home equity lines of credit and small business loans. Landmark Bancorp emphasizes personalized service, leveraging local decision-making to meet the unique needs of individuals and local enterprises. In addition to traditional deposit and lending services, Landmark Bancorp offers comprehensive cash-management and treasury solutions for commercial clients. The article "Landmark Bancorp Q1 Earnings Call Highlights" was originally published by MarketBeat.

Landmark Bancorp, Inc. LARK reported first-quarter 2026 diluted earnings per share of 83 cents, up 7.8% from 77 cents in the year-ago period. Net earnings totaled $5.1 million compared with $4.7 million in the first quarter of 2025, reflecting similar growth. Total revenues reached a record $18.8 million, up roughly 14% from $16.5 million a year earlier. This growth was primarily driven by higher net interest income, which rose 14.5% year over year to $15 million. Non-interest income increased to $3.8 million from $3.4 million in the prior-year period. A key driver of Landmark Bancorp’s improved performance was the expansion in net interest income and margins. The net interest margin widened 48 basis points to 4.24% from 3.76% a year earlier. The increase was supported by higher yields on earning assets and reduced funding costs. Deposit costs declined, with total deposit costs falling 21 basis points year over year to 1.38%. Lower interest expenses on deposits and borrowings also contributed to margin expansion, highlighting the company’s effective balance sheet management in a shifting rate environment. Non-interest income rose 12% year over year, driven largely by increased gains on loan sales and higher bank-owned life insurance income. However, sequentially, fee-based income declined due to seasonal factors affecting interchange and overdraft revenues. On the expense side, non-interest expenses increased 10.6% year over year to $11.9 million. This rise was attributed to higher occupancy, data processing and compensation costs, as well as expenses related to system upgrades. Notably, the quarter included $433,000 in fraud-related losses tied to previously disclosed activity, which contributed to elevated “other expense” levels. Despite these pressures, the efficiency ratio improved to 62.7% from 64.4% a year ago, indicating better cost management relative to revenue growth. Landmark Bancorp’s balance sheet showed mixed trends during the quarter. Gross loans totaled $1.1 billion, declining modestly from the prior quarter due to reductions in agricultural, residential and commercial loan categories, partially offset by growth in commercial real estate lending. Deposits fell by $66.2 million to $1.3 billion due to declines in brokered deposits and seasonal public fund outflows. To offset this, borrowings increased significantly by $57.3 million. Asset quality metrics showed some deterioration, with non-performing loans increasing to $10.4 million, or 0.94% of gross loans compared with 0.90% in the prior quarter. Additionally, loans 30-89 days delinquent rose sequentially to 0.68% of gross loans from 0.38%. Capital levels remained solid, with stockholders’ equity rising to $161.6 million and the equity-to-assets ratio improving slightly to 10.06%. Tangible book value per share also increased, reflecting continued capital accretion. Management highlighted a “strong start” to 2026, citing record revenues and improved profitability metrics. The company emphasized disciplined execution, with growth in net interest income and careful expense management supporting returns. Leadership also pointed to ongoing investments in revenue-generating activities and modernization of banking services, alongside a focus on risk oversight and balance sheet strength. These priorities suggest a strategy aimed at sustaining growth while maintaining resilience amid economic uncertainties. Several factors shaped Landmark Bancorp’s quarterly results. Margin expansion was driven by favorable interest rate dynamics, including higher asset yields and lower funding costs. At the same time, expense growth reflected both strategic investments in technology and one-time impacts such as fraud losses. Loan contraction and deposit outflows, influenced by seasonal and funding mix changes, also affected the balance sheet. Meanwhile, increased provisioning for credit losses ($500,000 compared with none a year earlier) indicates a more cautious stance toward credit risks. During the quarter, Landmark Bancorp’s did not report any acquisitions, divestitures or major restructuring activities. However, the company declared a quarterly cash dividend of 21 cents per share, underscoring its continued commitment to shareholder returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Landmark Bancorp Inc. (LARK): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record total revenue of $18.8 million was driven by a 21 basis point expansion in net interest margin to 4.24%, supported by disciplined pricing and a solid core customer base. Loan portfolio shifts reflected a strategic emphasis on commercial real estate growth, which helped offset seasonal reductions in agricultural lending and a pivot toward selling more residential mortgage originations into the secondary market. Core customer deposits increased 1.6% on a linked-quarter basis, which management views as a validation of their relationship-based banking model despite seasonal outflows in public funds. Profitability improvements, including a return on assets of 1.29%, were attributed to the execution of strategic initiatives and higher yields on the investment portfolio. Management is actively evaluating opportunities to modernize service delivery and improve operational efficiency across the bank's footprint to meet evolving customer needs. The bank maintained its long-term commitment to shareholder returns, declaring its 99th consecutive quarterly cash dividend since the parent company's formation. Management plans to continue making targeted investments in revenue-generating activities while focusing on strengthening risk oversight and capital positions. The bank expects to maintain sufficient liquidity for future loan growth, supported by a loan-to-deposit ratio of 82.1%. Credit metrics are expected to improve over time as the bank works through a small number of borrower-specific situations, despite current modest elevations in nonperforming loans. Strategic balance sheet management allowed for the reduction of more expensive short-term borrowings through growth in core customer deposits and the use of lower-cost funding sources like the FHLB. The investment portfolio is projected to generate $68.7 million in cash flow over the next 12 months, providing a steady stream of liquidity for reinvestment or funding needs. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. A fraud loss of $433,000 was recognized during the quarter related to previously disclosed activity by a non-executive officer; this figure excludes potential insurance recoveries. Nonperforming loans increased slightly due to a single $1.3 million commercial relationship that ceased operations, though the balance was reduced by $500,000 post-quarter end through self-liquidation. Pretax unrealized net losses on the investment portfolio increased by $3.8 million to $11.3 million, driven by the impact of rising interest rates on bond valuations. Other expenses were impacted by higher insurance loss reserves at the bank's captive insurance subsidiary. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.