Landmark Bancorp (LARK) investor relations material

Executive summary

• Net income for Q2 2025 was $4.4M, up 46%–56% year-over-year, driven by higher net interest income and controlled expenses.

• Diluted EPS rose to $0.75, up from $0.52 a year ago.

• Loan growth, margin expansion, and higher noninterest income contributed to solid revenue growth.

• Total assets remained stable at $1.6B; deposits decreased 4.1% to $1.27B, mainly due to seasonal and brokered deposit declines.

• Board declared a $0.21 per share cash dividend, marking the 96th consecutive quarterly dividend.

Financial highlights

• Net interest income increased 24.7% year-over-year to $13.7M, supported by strong loan growth.

• Net interest margin rose to 3.83%, up from 3.21% a year ago.

• Noninterest income was $3.6M, up from Q1 but down year-over-year due to lower deposit account fees.

• Noninterest expense was $11.0M, down year-over-year, reflecting lower valuation allowances and higher data processing costs.

• Efficiency ratio improved to 62.8% from 67.9% year-over-year.

Outlook and guidance

• Management expects continued profitability, strong capital base, and stable credit quality, with focus on deposit growth and operational efficiencies.

• Nonperforming loan trends expected to improve in Q3, with adequate provisioning for credit losses.

• Economic headwinds, including inflation and high interest rates, are expected to persist, impacting funding costs and investment security values.

• Cautions issued regarding economic, regulatory, and competitive risks that could impact future results.

• Asset quality is expected to remain strong, though management is monitoring a few problem loans.