LARK — Landmark Bancorp, Inc.

Summary of Landmark Bancorp, Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $18.8 million (record high for the quarter).
• Earnings Per Share (EPS): $0.83, up 6.7% from Q4 2025 and 7.2% year-over-year.
• Net Interest Income: $15 million, a 1.6% increase from Q4 2025 and a $1.9 million increase year-over-year.
• Net Interest Margin: Expanded to 4.24%, up 21 basis points from Q4 2025.
• Return on Assets (ROA): Increased to 1.29%, up 12 basis points quarter-over-quarter.
• Loans: Totaled $1.1 billion, down $13.5 million from year-end 2025 but up $23.3 million year-over-year.
• Deposits: Decreased by $66.2 million to $1.3 billion, primarily due to seasonal outflows.
• Net Charge-offs: 13 basis points of average loans; net charge-offs totaled $349,000.
• Nonperforming Loans: Increased to $10.4 million (0.94% of gross loans).

2. Strategic Updates and Business Highlights:

• Continued growth in the commercial real estate portfolio, which increased by $13.6 million.
• Core customer deposits grew by 1.6% quarter-over-quarter, reflecting a strong relationship-based banking approach.
• The bank is focused on investing in revenue-generating activities and modernizing banking services.
• A cash dividend of $0.21 per share was declared, marking the 99th consecutive quarterly dividend.

3. Forward Guidance and Outlook:

• Landmark Bancorp expects to maintain its strategic focus on disciplined growth and enhancing customer relationships.
• The leadership is optimistic about the bank's positioning for the remainder of the year, citing improved profitability and strategic initiatives.
• Continued emphasis on credit risk management and strengthening the overall balance sheet.

4. Bad News, Challenges, or Points of Concern:

• Loan Balances: A modest decline in total loans, particularly in agricultural and residential portfolios, raises concerns about growth sustainability.
• Nonperforming Loans: A slight increase in nonperforming loans and a rise in loans delinquent 30 to 89 days, indicating potential credit quality issues.
• Fraud Losses: Recognition of $433,000 in fraud losses related to previous misconduct by a non-executive officer, which may impact investor confidence.
• Investment Portfolio: Increased unrealized net losses due to rising interest rates, which could affect future income.

5. Notable Q&A Insights:

• Management emphasized the importance of disciplined underwriting and proactive risk management in addressing credit quality concerns.
• The bank is closely monitoring specific borrower situations that have led to increased delinquencies, with expectations for improvement.
• Discussions highlighted the bank's commitment to community engagement and enhancing customer experience as a core strategic focus moving forward.

Overall, Landmark Bancorp reported solid financial performance in Q1 2026, with growth in key areas despite some challenges in loan balances and credit quality. The bank's strategic initiatives and focus on core customer relationships position it well for future growth, although vigilance regarding credit risks remains essential.