Landmark Bancorp's Net Earnings Soar 44% on Strong Loan Growth

TL;DR

**LARK is crushing it with loan growth and soaring profits, making it a solid buy in a tough market.**

AI Summary

LANDMARK BANCORP INC (LARK) reported a robust financial performance for the nine months ended September 30, 2025, with net earnings surging by 44.4% to $14.035 million from $9.721 million in the prior year. This growth was primarily driven by a significant increase in net interest income, which rose 22.7% to $40.896 million from $33.325 million. Loans, net of allowance for credit losses, expanded by 6.3% to $1,104.991 million from $1,039.221 million at December 31, 2024. Total assets increased by 2.7% to $1,617.075 million from $1,574.142 million. Despite a slight decrease in total deposits to $1,325.500 million from $1,328.766 million, the company increased Federal Home Loan Bank and other borrowings by 70.6% to $90.483 million to support loan growth. The provision for credit losses also increased by 131.3% to $1.850 million, reflecting loan portfolio expansion. Diluted earnings per share rose to $2.41 from $1.69, and dividends per share increased to $0.63 from $0.60.

Why It Matters

This strong performance signals LARK's ability to generate significant earnings growth in a competitive banking landscape, which is crucial for investor confidence. The substantial increase in net interest income and loan portfolio expansion suggests effective asset deployment and robust demand for credit in its operating regions. For employees, this indicates a stable and growing company, potentially leading to better opportunities. Customers benefit from a financially healthy bank capable of supporting their lending needs. In the broader market, LARK's growth, particularly in loans, could reflect positive economic activity in its service areas, potentially outperforming regional peers.

Risk Assessment

Risk Level: medium — While LARK shows strong earnings, the significant increase in Federal Home Loan Bank and other borrowings by 70.6% to $90.483 million from $53.046 million indicates increased reliance on wholesale funding, which can be more volatile and costly than deposits. Additionally, the provision for credit losses more than doubled to $1.850 million from $0.800 million, suggesting potential future credit quality concerns as the loan portfolio expands.

Analyst Insight

Investors should consider LARK's strong earnings growth and increased dividends as positive indicators. However, they should closely monitor the rising provision for credit losses and the increased reliance on FHLB borrowings, which could impact future profitability and liquidity. A deeper dive into the loan portfolio's credit quality and deposit growth strategies is warranted.

Financial Highlights

debt To Equity

0.94

revenue

$60,179,000

operating Margin

N/A

total Assets

$1,617,075,000

total Debt

N/A

net Income

$14,035,000

eps

$2.41

gross Margin

N/A

cash Position

$23,947,000

revenue Growth

+9.5%

Revenue Breakdown

Key Numbers

• $14.035M — Net Earnings (Increased 44.4% for the nine months ended September 30, 2025, from $9.721 million in 2024.)
• $40.896M — Net Interest Income (Increased 22.7% for the nine months ended September 30, 2025, from $33.325 million in 2024.)
• $1.105B — Loans, Net (Increased 6.3% to $1,104.991 million at September 30, 2025, from $1,039.221 million at December 31, 2024.)
• $1.850M — Provision for Credit Losses (Increased 131.3% for the nine months ended September 30, 2025, from $0.800 million in 2024.)
• $90.483M — FHLB & Other Borrowings (Increased 70.6% at September 30, 2025, from $53.046 million at December 31, 2024.)
• $2.41 — Diluted EPS (Increased from $1.69 for the nine months ended September 30, 2024.)
• $0.63 — Dividends per Share (Increased from $0.60 for the nine months ended September 30, 2024.)
• $1.617B — Total Assets (Increased 2.7% to $1,617.075 million at September 30, 2025, from $1,574.142 million at December 31, 2024.)
• $1.326B — Total Deposits (Decreased slightly to $1,325.500 million at September 30, 2025, from $1,328.766 million at December 31, 2024.)
• $6,988 — Accumulated Other Comprehensive Loss (Improved to $(6,988) thousand at September 30, 2025, from $(15,828) thousand at December 31, 2024.)

Key Players & Entities

• LANDMARK BANCORP INC (company) — registrant
• Landmark National Bank (company) — wholly owned subsidiary
• Landmark Risk Management Inc. (company) — wholly owned subsidiary
• $14.035 million (dollar_amount) — net earnings for nine months ended September 30, 2025
• $9.721 million (dollar_amount) — net earnings for nine months ended September 30, 2024
• $40.896 million (dollar_amount) — net interest income for nine months ended September 30, 2025
• $33.325 million (dollar_amount) — net interest income for nine months ended September 30, 2024
• $1,104.991 million (dollar_amount) — loans, net of allowance for credit losses, at September 30, 2025
• $1,039.221 million (dollar_amount) — loans, net of allowance for credit losses, at December 31, 2024
• $1.850 million (dollar_amount) — provision for credit losses for nine months ended September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The company's profitability is sensitive to changes in interest rates, which can affect net interest income and the fair value of investment securities. For instance, unrealized losses on available-for-sale securities increased from $21,094,000 at December 31, 2024, to $10,659,000 at September 30, 2025, indicating market value fluctuations.
• Credit Risk and Loan Portfolio Quality [medium — financial]: An increase in the provision for credit losses to $1.850 million from $0.800 million reflects the expansion of the loan portfolio. While loans net of allowance increased by 6.3% to $1,104.991 million, a higher provision signals potential concerns about the creditworthiness of borrowers or an anticipation of future loan losses.
• Liquidity Management and Borrowings [medium — financial]: The company increased Federal Home Loan Bank and other borrowings by 70.6% to $90.483 million to support loan growth, while total deposits saw a slight decrease. This reliance on wholesale funding sources could pose a liquidity risk if access to these markets becomes constrained or more expensive.
• Dependence on Core Deposits [low — operational]: Despite a slight decrease in total deposits to $1,325.500 million, the company relies heavily on deposit funding. A significant outflow of deposits, particularly non-interest-bearing demand deposits which increased to $365,959,000, could impact funding costs and liquidity.
• Economic Downturn Impact [medium — market]: A general economic slowdown could negatively impact the company's loan portfolio through increased delinquencies and defaults, as well as reduce demand for new loans. This is a systemic risk for all financial institutions.

Industry Context

Landmark Bancorp operates within the highly competitive U.S. regional banking sector. The industry is characterized by a focus on traditional lending and deposit-gathering activities, with increasing pressure from fintech disruptors and larger national banks. Key trends include rising interest rates impacting net interest margins, ongoing digital transformation efforts, and a heightened focus on regulatory compliance and credit risk management.

Regulatory Implications

As a financial institution, LARK is subject to stringent regulations from bodies like the Federal Reserve and FDIC. Changes in capital requirements, lending standards, and consumer protection laws can significantly impact operations and profitability. The increase in borrowings and the provision for credit losses suggest a need for careful monitoring of regulatory capital ratios and loan loss provisioning.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the impact of interest rate changes on net interest margin.
3. Evaluate the sustainability of funding sources.
4. Assess the improvement in Accumulated Other Comprehensive Loss.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 financial results reported — Demonstrates significant net earnings growth of 44.4% and robust net interest income increase of 22.7%.
• 2025-12-31: Year-end 2024 financial position — Provides the comparative baseline for asset, liability, and equity changes in 2025.
• 2025-03-25: Company's most recent Annual Report on Form 10-K filed — Contains the latest audited consolidated financial statements and notes, providing historical context.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest it pays out to its depositors and lenders. (A primary driver of profitability for banks; LARK saw a significant 22.7% increase.)

Allowance for Credit Losses

An estimate of the losses expected to be incurred from a company's loan portfolio. (An increase in this allowance, as seen with LARK's provision for credit losses, indicates management's anticipation of potential loan defaults.)

Available-for-sale securities

Investments that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (LARK holds $350,028,000 in these securities, which are subject to market value fluctuations.)

Held-to-maturity securities

Debt securities that a company has the intent and ability to hold until their maturity date. They are reported at amortized cost. (LARK has $3,760,000 in these securities, with a fair value of $3,468,000 as of September 30, 2025.)

Federal Home Loan Bank (FHLB) borrowings

Advances from the FHLB system, a government-sponsored enterprise that provides liquidity to member financial institutions. (LARK significantly increased its FHLB borrowings by 70.6% to $90,483,000 to fund loan growth.)

Accumulated Other Comprehensive Loss

A component of equity that includes unrealized gains and losses on certain investments and other items not included in net income. (LARK's accumulated other comprehensive loss improved significantly, decreasing from $(15,828,000) to $(6,988,000).)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Landmark Bancorp has demonstrated substantial growth, with net earnings up 44.4% and net interest income increasing by 22.7%. This performance is supported by a 6.3% expansion in the net loan portfolio. However, the company has also increased its reliance on borrowed funds, with FHLB and other borrowings surging 70.6%, while total deposits saw a marginal decrease. The provision for credit losses has more than doubled, indicating a more cautious stance on asset quality amidst portfolio growth.

Key Financial Figures

• $0.01 — h registered: Common Stock, par value $0.01 per share LARK Nasdaq Global Market

Filing Documents

• form10-q.htm (10-Q) — 2686KB
• ex10-1.htm (EX-10.1) — 74KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• 0001493152-25-022251.txt ( ) — 13243KB
• lark-20250930.xsd (EX-101.SCH) — 60KB
• lark-20250930_cal.xml (EX-101.CAL) — 89KB
• lark-20250930_def.xml (EX-101.DEF) — 229KB
• lark-20250930_lab.xml (EX-101.LAB) — 504KB
• lark-20250930_pre.xml (EX-101.PRE) — 414KB
• form10-q_htm.xml (XML) — 3598KB

Financial Statements

Financial Statements 2 - 26 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 - 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 37 PART II Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39 Signature Page 40 1 PART I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LANDMARK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) September 30, December 31, 2025 2024 (Unaudited) Assets Cash and cash equivalents $ 23,947 $ 20,275 Interest-bearing deposits at other banks 3,218 4,110 Investment securities available-for-sale, at fair value 350,028 372,512 Investment securities, held-to-maturity, net of allowance for credit losses of $ 91 and $ 91 , fair value of $ 3,468 and $ 3,290 3,760 3,672 Bank stocks, at cost 8,021 6,618 Loans, net of allowance for credit losses of $ 12,299 and $ 12,825 1,104,991 1,039,221 Loans held for sale, at fair value 3,578 3,420 Bank owned life insurance 39,890 39,056 Premises and equipment, net 19,449 20,220 Goodwill 32,377 32,377 Other intangible assets, net 2,123 2,578 Mortgage servicing rights 3,120 3,061 Real estate owned, net - 167 Accrued interest and other assets 22,573 26,855 Total assets $ 1,617,075 $ 1,574,142 Liabilities and Stockholders' Equity Liabilities: Deposits: Non-interest-bearing demand $ 365,959 $ 351,595 Money market and checking 579,413 636,963 Savings 146,291 145,514 Certificates of deposit 233,837 194,694 Total deposits 1,325,500 1,328,766 Federal Home Loan Bank and other borrowings 90,483 53,046 Subordinated debentures 21,651 21,651 Repurchase agreements 1,420 13,808 Accrued interest and other liabilities 22,294 20,656 Total liabilities 1,461,348 1,437,927 Commitments and contingencies - - Stockholders' equity: Common stock, $ 0.01 par value per share, 7,500,000 shares authorized;

Financial Statements

Financial Statements The unaudited consolidated financial statements of Landmark Bancorp, Inc. (the "Company") and its wholly owned subsidiaries, Landmark National Bank (the "Bank") and Landmark Risk Management Inc., have been prepared in accordance with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements and should be read in conjunction with the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 25, 2025, containing the latest audited consolidated financial statements and notes thereto. The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of financial statements have been reflected herein. The results of the nine month interim period ended September 30, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025 or any other future time period. The Company has evaluated subsequent events for recognition and disclosure up to the date the financial statements were issued. 2. Investments A summary of the Company's investment securities classified as available-for-sale and held-to-maturity as of September 30, 2025 and December 31, 2024 is as follows: Schedule of Available-for-sale and Held to Maturity Securities (Dollars in thousands) As of September 30, 2025 Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value Available-for-sale: U. S. treasury securities $ 50,661 $ 518 $ ( 346 ) $ 50,833 Municipal obligations, tax exempt 98,971 106 ( 1,694 ) 97,383 Municipal obligations, taxable 83,940 510 ( 2,214 ) 82,236 Agency mortgage-backed securities 125,

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View this 10-Q filing on SEC EDGAR