LARK — Landmark Bancorp, Inc.

Summary of Landmark Bancorp, Inc. Q2 2026 Earnings Call

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.