Summary of Landmark Bancorp, Inc. Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Record revenue of $19.2 million, up from the previous quarter, driven by increased net interest income and gains on sales of loans.

Net Income: $5.4 million, an increase from $5.1 million in Q1 2026.

Earnings Per Share (EPS): Increased to $0.88.

Return on Assets (ROA): Improved to 1.35%.

Return on Equity (ROE): Increased to 13.23%.

Net Interest Income: Totaled $15.1 million, a slight increase from Q1 2026.

Nonperforming Loans: Increased to $13.1 million (1.18% of gross loans) from $10.4 million (0.94%).

Tangible Book Value Per Share: Increased to $21.76, with tangible common equity to assets at 8.44%.

Dividends: Declared a cash dividend of $0.21 per share, marking the 100th consecutive quarterly dividend.

2Strategic Updates and Business Highlights

Continued execution of a disciplined growth strategy, focusing on relationship-based banking.

Positive loan growth in commercial and agricultural portfolios, with moderated commercial loan payoffs.

Investments in talent acquisition and leadership, including the appointment of a new commercial banking leader in key regions.

Core deposits increased by $11 million, with a focus on expanding full-service banking relationships.

3Forward Guidance and Outlook

Management expressed cautious optimism about growth in the second half of 2026, citing opportunities for new customer relationships and onboarding new commercial lenders.

Aiming to maintain net interest margin around 4.20% for the remainder of the year, contingent on stable Federal Reserve interest rates.

Continued focus on strengthening customer relationships and operational efficiency.

4Bad News, Challenges, or Points of Concern

Declining Metrics: Total deposits decreased by $17.7 million, primarily due to a reduction in broker deposits.

Credit Quality Concerns: Nonperforming loans increased, attributed to two borrower relationships, although management is actively working on resolutions.

Competitive Pressures: Strong competition for customer relationships and talent in the markets served.

Expense Increases: Noninterest expenses rose due to higher professional fees related to legal costs and talent recruitment.

5Notable Q&A Insights

Loan Growth Outlook: CEO Abby Wendel indicated cautious optimism for building on Q2 growth, emphasizing a strategic decision to allow certain payoffs to roll down to create room for new commercial opportunities.

Nonperforming Loans: CFO Mark Herpich confirmed that the increase in nonperforming loans was manageable and linked to specific borrower situations under close management.

Margin Stability: CFO expressed cautious optimism about maintaining the net interest margin, supported by potential reinvestment opportunities in higher-yielding assets. Overall, Landmark Bancorp reported a strong quarter with record revenues and profitability, while also addressing challenges related to credit quality and competitive pressures. The company remains focused on strategic growth and operational efficiency moving forward.