Landmark Bancorp Inc (LARK) Q3 2024 Earnings Call Highlights: Record Loan Growth and Strong ...

In This Article:

  • Net Earnings: $3.9 million for Q3 2024.

  • Earnings Per Share (EPS): $0.72 on a fully diluted basis for Q3 2024.

  • Return on Average Assets: 1.0% for Q3 2024.

  • Return on Average Equity: 11.82% for Q3 2024.

  • Efficiency Ratio: 66.5% for Q3 2024.

  • Net Income Growth: 30.5% over the prior quarter and 36.6% over Q3 2023.

  • Total Gross Loans: Increased by $21.3 million, reaching $1 billion.

  • Deposit Balances: Increased by 8.0%.

  • Net Interest Income: Grew by 5.7% in Q3 2024.

  • Net Interest Margin: Increased by 9 basis points to 3.30%.

  • Noninterest Income: Increased by $533,000 over the prior quarter.

  • Allowance for Credit Losses: $11.5 million as of September 30, 2024.

  • Dividend: Cash dividend of $0.21 per share declared.

  • Stock Dividend: 5% stock dividend declared.

  • Interest Income on Loans: Increased by $911,000 in Q3 2024.

  • Interest Expense on Deposits: Increased by $157,000 in Q3 2024.

  • Noninterest Expense: Decreased by $536,000 compared to the prior quarter.

  • Effective Tax Rate: 18.1% for Q3 2024.

  • Loan-to-Deposit Ratio: 77.6% as of September 30, 2024.

  • Stockholders' Equity: Increased by $11.4 million to $139.7 million.

  • Book Value Per Share: $25.39 as of September 30, 2024.

  • Nonperforming Loans: Totaled $13.4 million, an increase of $8.4 million from the prior quarter.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Landmark Bancorp Inc (NASDAQ:LARK) reported net earnings of $3.9 million for the third quarter of 2024, a significant increase from the previous quarter and the same period in 2023.

  • The company achieved a milestone with total gross loan balances reaching $1 billion for the first time in its history.

  • Net interest income grew by 5.7%, and the net interest margin increased by 9 basis points to 3.30% compared to the second quarter of 2024.

  • Noninterest income increased by $533,000 over the prior quarter, driven by higher fee-based revenue, residential mortgage revenue, and gains on the sale of a former branch facility.

  • The Board of Directors declared a cash dividend of $0.21 per share and a 5% stock dividend, demonstrating a long-term commitment to shareholder value and liquidity.

Negative Points

  • Nonperforming loans increased significantly, with nonaccrual loans totaling $13.4 million, primarily due to a single secured commercial loan relationship.

  • Interest expense on deposits increased by $157,000, driven by higher balances in high-yielding deposit accounts.

  • The balance of past due loans between 30 and 89 days increased by $5.4 million, indicating potential credit risk concerns.

  • Interest income on investment securities decreased by $70,000 due to a decline in average investment securities balances.

  • Noninterest checking and savings accounts declined by $5.6 million, which could impact future liquidity.